Chapter 1162 Let the storm come more violently!
Hongyan Tokyo Office.
Not long after he arrived, Lu Jue, CEO of Taihua Group, also walked in under the leadership of Li Jinling.
"Mr. Xu."
"Come and sit."
Xu Liang waved.
After the two sat down, they made tea step by step.
"I have been researching in Japan for half a year. How is the quality of SOGO Seibu Department Store?"
"At least half are bad.
The design is old, the pipelines are aging, there are insufficient parking spaces, there are too few green spaces, there is a lack of artistic elements, etc.
The remaining half also has various problems, but they are less serious. ”
Xu Liang nodded, already expecting this situation.
Japan is a country that is still playing with disk storage when the Internet has entered the cloud era.
The deep atmosphere of twilight can be felt everywhere here.
The ‘Plaza Accord’ and the subsequent real estate bubble completely broke Japan’s backbone and never got up again.
"Tell me about your rectification plan." Xu Liang.
"All Sogo and Seibu department stores outside Tokyo, Osaka, Yokohama and Nagoya will not be expanded.
Internal modifications only.
New circulation planning, redesign, and more leisure and art spaces.
In terms of content, we use the "Kelong Shopping Center" we built in China as a template, with family-oriented shopping and entertainment as the main selling points.
Mainly in the form of supermarkets, restaurants and children's entertainment.
Pursue to become a shopping and entertainment center within 3 to 5 kilometers around. ”
"The GDP of the four cities of Tokyo, Osaka, Yokohama, and Nagoya is over 100 billion US dollars, and they have an urban population of over 2 million. They are huge consumer markets.
For these four cities, my idea is to build 6 to 8 Taihua Plazas with a construction area of more than 100,000 square meters.
Half of our existing Sogo Seibu department stores located in the four major cities do not meet the requirements.
Therefore, I hope to acquire and consolidate land parcels, then demolish them entirely and invest in new construction.
If the area is big enough, we will build ‘Taihua City’; if it is not big enough, we will build ‘Taihua Plaza’. ”
Taihua Group’s ‘Taihua City’ and ‘Taihua Plaza’ have different distinctions.
The former's construction area is generally more than 500,000 square meters, including shopping malls, office buildings, high-end apartments, hotels and other business formats.
The latter are often just large shopping malls mixed with one or two business formats, and some are simply super large shopping malls.
"Your ambition is not small."
Xu Liang smiled.
"With you supporting me from behind, I have to be more generous, otherwise I will embarrass you."
"Okay, stop flattering me. I agree with your plan in principle, but real estate is too expensive, so don't do it all at once.
The renovation and integration work of SOGO Seibu Department Store must be completed in a planned and step-by-step manner. ”
"Don't worry, I will never be blind."
Xu Liang nodded slightly, feeling relieved about Lu Jue.
"By the way, Mr. Xu, the United States is in increasing trouble. When do you predict the crisis will break out?"
"So concerned? Have you invested money?"
"Hey, I don't dare. I'm thinking that if a big crisis breaks out in the United States, I will definitely have to make up for it from a small book. The overflow impact will definitely cause the Japanese real estate industry to decline again.
By then my land purchase plan will be smoother and the money spent will be lower. ”
"You have a beautiful thought. But don't think about it within a year."
Lu Jue never doubted the big boss's reasoning and nodded quickly.
“Have the design drawings of the Magic City’s ‘Taihua Colorful Plaza’ been released?”
"It's already been made."
Lu Jue waved, and the secretary immediately handed over the laptop in his hand. After the former opened it skillfully, he found the completed design drawings.
Since Taihua acquired the Agricultural, Industrial and Commercial Supermarket from the Shanghai Municipal Government, the only urban complex under construction in the other party’s hands, ‘118 Plaza’, naturally fell into the hands of Taihua.
But in Xu Liang's eyes, the design problems of 118 Square are too big.
First, the area of the shopping mall is too small, with the five floors adding up to less than 100,000 square meters.
Second, we built a nondescript "Venice Town" with just a short stretch of waterway. After the novelty wears off, who will go there?
It's a complete waste of valuable space that could be developed and utilized.
Third, and most importantly, it is clearly next to Metro Line 13, but there is no stop at it?
The impact of traffic on an urban complex is fatal.
I don’t think it’s right now, but when there are more and more urban complexes and shopping malls, the inconvenience of transportation will be the most fatal weakness.
Therefore, after the Agricultural, Industrial and Commercial Supermarket was acquired, Xu Liang immediately stopped the entire project.
The design drawing in front of him completely implements his concept.
The 128.1 acres, nearly 85,000 square meters of land, will consist of a 48-story office building, a 42-story long-term rental apartment, and a shopping mall.
The shopping mall has three floors underground and five floors above ground, with a total construction area of 280,000 square meters.
The third underground floor and part of the second floor are parking lots.
Part of the second underground floor and the first underground floor are the underground pedestrian streets of the mall.
The entire project has a commercial area of nearly 200,000 square meters.
Office buildings and apartments are located above the shopping mall.
The entire project has a construction area of 569,000 square meters.
"Canceling this sunken square that leads directly to the underground floor may look good, but it is of no use." Xu Liang pointed to the design drawings.
The sunken plaza is boring if it is small, but it takes up space and is completely unnecessary if it is large.
"Okay."
"How's the negotiation with the Magic City going?"
"They agreed. As long as we rebuild the 'Colorful Plaza', they are willing to open a subway station on our side, and they are willing to cooperate with us. The exit can directly lead to the second underground floor of the 'Colorful Plaza'."
With good transportation, half the success of the project is achieved.
“Where’s the project budget?”
"The construction period is 3 years, and the investment budget is 7.5 billion Chinese dollars."
Xu Liang nodded slightly. This number increased by nearly 30% compared to a newly built similar project.
It's actually quite normal.
The first requirement for the construction of the "Colorful Plaza" is to demolish the "118 Plaza" that has already completed its framework.
It’s just that the demolition costs are not cheap.
If 118 Plaza hadn't been in such a good location, located in the "New Central" central business district of Putuo District, and close to Jinshajiang Road and Zhenbei Road, he wouldn't have put in so much effort and sold it directly.
"Let's start construction according to this requirement."
"Okay."
"Has the hotel made clear arrangements with Seibu Group?"
"All have been delivered. The properties of 2 Peninsula Hotels [super five-star], 17 Goodwood Garden Hotels [five-star], and 39 star-rated Taihua Hotels have all been delivered.
In addition, we have reached an agreement with the Qiu family.
They are willing to give up Goodwood Garden Hotel Group in exchange for all the shares of Taihua Apparel Group. ”
Liangmuyuan Hotel Group is a hotel group company jointly established by Taihua and the Qiu family when Qiu Deba was still alive.
It includes two brands, the five-star "Goodwood Garden" brand and the star-rated hotel "Thaihua".
Initially, Taihua held 49% of the shares and the Qiu family held 51%.
However, as the number of commercial complexes owned by Taihua continued to grow, the number of hotels increased, and the capital investment required increased.
Gradually, Taihua gained the upper hand, and its shareholding once increased to 63%.
Now, the Taihua Group wants to use its hotel assets to exchange the assets of the 'SOGO Seibu Department Store' in the hands of the Seibu Group.
The Qiu family is a hurdle that cannot be bypassed.
In the final three-party negotiation, Taihua Group exchanged its well-developed "Taihua Clothing Group" for the Xu family's equity in "Goodwood Garden Hotel Group".
Then use the complete "Goodwood Garden Hotel Group" to exchange the "SOGO Seibu Department Store" with the Seibu Group.
However, the property ownership rate of Sogo Seibu Department Store is too high, although Goodwood Garden Hotel Group also owns all hotel properties.
But now the commercial real estate prices in China are still not as good as those in Japan.
The two parties signed a supplementary agreement.
After Taihua acquired Sogo Seibu Department Store, it took over a quarter of the other party's debt, about US$3 billion.
After both parties formally sign the contract.
The number of commercial complexes and shopping malls owned by Taihua has skyrocketed, from the original 109 (including under construction, planning and completion) to 163.
Due to the separation of hotel properties, the operating area only increased by 3.7 million square meters.
Even so, Taihua is still the largest commercial real estate company in Asia.
"Mr. Xu, these are the financial statements and operating information of Taihua for the two quarters of this year that we have compiled." Lu Jue said.
Taking the information in his hand, Xu Liang flipped through it.
After excluding the hotel and clothing businesses, Taihua Group is left with six businesses.
1. Taihua Property. Taihua Property is not only responsible for the properties of residential real estate, but also the properties of all commercial real estate owned by Taihua.
Including property fees, as well as the collection of shop rent, etc.
With the continuous expansion of Taihua's commercial complexes and shopping malls, Taihua Property has gradually become the top subsidiary of Taihua Property second only to "Taihua Retail Group".
2. Taihua Children’s Paradise.
Although it is developing rapidly and making money from children is relatively easy, Taihua does not account for a high proportion of the overall business sector and its presence is not strong.
But the profit margin is very good, basically reaching 40%.
3. Taihua Retail Group.
Taihua Retail is divided into three sectors: boutique department stores, supermarkets and shopping malls.
The boutique department store segment has three brands.
Kids King, Hibiscus Life and Taihua.
The market profile for the first two is children and teenage women.
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Taihua Department Store is relatively comprehensive, targeting young men and women, and has a relatively rich variety.
The store area is relatively large.
Generally more than 300 square meters, selling various handicrafts, celebrity peripherals, etc.
In terms of supermarkets, after integrating China Resources and Agricultural, Industrial and Commercial, Taihua is undoubtedly the largest supermarket group in China.
There are nearly 850 large supermarkets with an area of more than 3,000 square meters.
There are 1,300 medium-sized supermarkets with an area of more than 800 square meters and nearly 10,000 franchised convenience stores.
Finally there is the ‘mall’.
Kelong Shopping Center is actually what is now collectively referred to as a ‘hypermarket’ in the supermarket industry.
The area is generally 12,000 to 20,000 square meters.
Different from traditional hypermarkets, in order to adapt to the new market form, Kelong has transformed its hypermarkets into ‘shopping malls’, reducing the area of clothing, shoes, hats and household appliances, and increasing the space for catering and leisure entertainment.
It is no longer just shopping, but tends to be family entertainment shopping.
Radiating to consumer groups within three kilometers.
Within the entire Taihua Group, Taihua Retail Group surpassed Suning and became the largest retail group in the country with a half-year revenue of 74.87 billion Chinese dollars.
The annual revenue is expected to exceed 150 billion Huaxia coins.
4. Fuhua Apartment.
There are currently 11 Fuhua Jinfeng Apartments targeting high-end customer groups, mainly distributed in first- and second-tier cities across the country.
‘Sequoia Apartments’ for family customers.
Originally, the Sequoia Apartment was positioned as a vacation apartment, but later it was discovered that domestic tourists are more accustomed to staying in hotels, rather than vacation apartments with larger spaces and kitchens.
In addition, ‘Sequoia Apartments’ are generally located in bustling urban areas rather than adjacent to scenic spots, so the positioning is wrong.
There is no choice but to find a way out again.
After a comprehensive investigation, we targeted young white-collar families who came to work in big cities.
These people cannot afford housing in big cities and may have children around them.
Ordinary single apartments cannot meet their needs.
Although the two-bedroom apartments in residential areas have a lot of space, they are relatively expensive for them.
This kind of one-bedroom, equipped with kitchen and bathroom, long-term rental apartment of about 50 square meters is often the most suitable for these young white-collar families who come from ordinary families and are not wealthy.
Finally, there is the ‘Fuhua Apartment’ for singles, which is also the largest number of apartments owned by Taihua.
They are spread across first- and second-tier cities across the country, and there are 47 of them so far.
After five or six years of development, Fuhua Apartment has a rental area of 4.39 million square meters, and the monthly rent it receives exceeds 200 million Chinese yuan.
5. Fuhua real estate agency.
"How is your negotiation with Lianjia Real Estate going?" Xu Liang asked.
After taking over Sunchi's real estate agency business, Fuhua Real Estate Brokerage ranked seventh in the industry nationwide, ahead of Lianjia, Zhongyuan, I Love My Home, 21st Century Real Estate, Maitian and Mantanghong.
Of course Lu Jue, who has strong capital, is not willing to be the younger brother.
So I quickly set my sights on Lianjia Real Estate, the number one company in the industry.
Lianjia’s market size is only one of the reasons why Lianjia is targeting it. More importantly, Lianjia’s development model of “strong control and direct-operated stores” is very suitable for Fuhua itself.
"Peng Yongxi asked for 800 million Huaxia coins. I think it is too high and we will keep talking."
“How much is Lianjia’s revenue?”
"The revenue in the two quarters of this year has just exceeded 400 million Chinese yuan, but the development momentum is good. In Beijing, their 350 stores have generated a monthly revenue of nearly 70 million yuan.
The efficiency is as good as ours. ”
"No wonder you fell in love with it."
Xu Liang smiled.
He didn't ask any questions about such a small-scale acquisition, just let Lu Jue make the decision himself.
6. Fuhua Real Estate.
Now Fuhua Real Estate has surpassed the former real estate leader Vanke in terms of development area and profitability.
In the two quarters, 34,000 housing units were sold, with a total sales area of 3.497 million square meters, generating sales revenue of 37.18 billion Chinese yuan.
It increased by 146.6% compared with the same period in 2006, accounting for 3.07% of the national residential market.
After clearing out its hotel and clothing businesses, Taihua's operations were smaller but more refined.
The two pillars of real estate and retail have also become stronger.
Excluding the newly merged "SOGO Seibu Department Store", in the two quarters of 2007, Taihua Group's total revenue was 121.7 billion Chinese dollars, and its main industry net profit was 15.723 billion Chinese dollars.
If "SOGO Seibu Department Store" is included, the total revenue of Taihua Group in the two quarters of this year was 151.9 billion Chinese dollars, and the net profit of the main industry was 20.47 billion Chinese dollars.
The group's total assets exceeded 590 billion Chinese dollars, and its total debt exceeded 320 billion Chinese dollars.
Cash flow is 37 billion Huaxia coins.
The land reserve is 27.87 million square meters, with Fuhua Real Estate accounting for 65%.
It has two listed companies.
Fuhua Real Estate and Kelong Supermarket.
"What is the market value of Fuhua and Kelong?" Xu Liang asked.
"The market value of Fuhua is HK$318.7 billion, and the market value of Kelong Supermarket is HK$163.2 billion. The group currently holds 75% of the shares in Fuhua and 73% of the shares in Kelong."
Xu Liang nodded slightly.
"You do two things when you go back.
First, take out the shares of Fuhua and Kelong worth a total of US$15 billion and sell them to Hongyan to introduce you to the past ‘charity fund’.
Second, in the next year, continue to sell the shares of Fuhua and Kelong in the secondary market. My request is very simple. The equity of the remaining two companies in the group, plus the shares you sold to the charity fund. The total equity of the company shall not be less than 45%. ”
Lu Jue made a simple calculation in his mind.
Calculated based on the current market value of the two companies, according to the boss's requirements.
The group can at least withdraw a huge cash flow of nearly HK$280 billion.
If the group's existing cash reserves are included, it can completely cover all the group's debts.
"Mr. Xu, is this too risky?"
Kelong Supermarket and Fuhua Real Estate are the business pillars of Taihua Group. If they are broken, the group will be seriously injured in an instant.
"Don't worry, just do it and I will take care of the rest. Also, from now on, except for the best plots in the core areas, Taihua will no longer increase its land bank.
Next year, the group will not launch new projects. ”
Xu Liang's eyes became profound, "Lao Lu, the biggest crisis is coming. Of course, it is also a huge opportunity for us.
If we catch it, Taihua's business will no longer be limited to China and Japan, but will cover the entire Southeast Asia and even Europe.
Also, haven’t you always wanted to develop the ‘Battersea Power Station’ in the UK?
I'll give you a chance then. ”
Lu Jue felt excited instantly.
"Mr. Xu, don't worry. I'll go back right away and arrange the work according to your requirements."
"Yeah."
After the two chatted for a while, Lu Jue said goodbye and left.
Xu Liang took a piece of paper.
Do the math quickly.
Through Xu's American Charitable Foundation and the secondary market, Taihua was able to withdraw almost HK$280 billion in cash.
He also provided US$10 billion in CDS bonds to Taihua.
After deducting the capital gains tax paid and the expenses incurred in clearing up connections, Taihua will receive almost US$7 billion in cash.
Plus the group’s own cash flow.
Before the subprime crisis started, Taihua Energy had amassed a huge cash flow of about HK$420 billion.
This amount of money can not only cover all the corporate bonds issued by Taihua.
It can also support the company's major mergers and acquisitions and expansion, and win the CapitaLand Group, which he has been thinking about for many years, to become a huge real estate and retail flagship covering the entire Asia.
Let Taihua's business truly reach a greater level.
At this time, a poem suddenly came into Xu Liang's mind: Let the storm come more violently!
(End of chapter)