Chapter 187 187 [Dongchang Building]
Of course Luo Qihong did his homework before he dared to meet Ding Xiongzhao. He chuckled and said, "I know a little about the situation of Kaida Baoye Company. There are several companies in Europe and the United States. A service company, but this scale is far from enough. I am very optimistic about Kaida Baoye’s toys.”
“Once the market opens in European and American countries, Japan, and South Korea, the revenue from the products will probably be direct. Do you really want to reject such a good expansion opportunity? "
Ding Xiong has looked at Luo Qihong's information and knows that Luo Qihong's industries involve trade, real estate, gas, and securities investment. This is still 2 The height reached in a year, if given some time, may become a towering tree.
If Kaida Baoye Company can establish a relationship with such an upstart, it will also be a good investment. Moreover, the current Hexiang Trading Company can make up for Kaida Baoye Company’s shortcomings in sales and open up new opportunities for the company. market, it’s a win-win situation.
"Then Luo Sheng, please tell me your plan first. If it is suitable, we can cooperate."
Seeing Ding Xiongzhao, Luo Qihong relented and said, "Hexiang Trading Company will get the goods at the ex-factory price, and at the same time, it will not be sold in Kaidabao." We can sell it in cities where the company has service points, and it can also help Kaida Baoye Company open the markets in Australia and Southeast Asia. We can equally share the profits from these two markets.”
Ding Xiongzhao knew that this was a good plan. , but he still wanted more, "The market profits in Australia and Southeast Asia will be divided into 70% and 30%, with Kaida Baoye Company accounting for 70%."
Luo Qihong smiled and said, "Okay, 70%. 30%, the best investment ratio can be based on this."
"The investment ratio is 60% or 40%, and Kaida Baoye Company will provide 40%," Ding Xiongzhao said further, staring intently. Written by Luo Qihong.
Luo Qihong shook his head, pursed his lips and said with a smile, "This is impossible! Ding Sheng should know that only Hexiang Trading Company will agree to such conditions, and other trading companies will certainly not, so your company must contribute at least 60%. Otherwise, there is no need to discuss it."
Ding Xiongzhao is also an old fox and thinks that Luo Qihong is trying to scare him, "Not necessarily, Luo Sheng. Other companies may also be optimistic about Kaida Baoye Company."
"Ha! If you are optimistic about Kaida Baoye Company, your company will no longer be just a small and medium-sized toy company in Xiangjiang. It is already one of the few listed toy companies in Xiangjiang." Luo Qihong chuckled, with a somewhat sarcastic tone.
The reason is that Ding Xiong takes advantage of the situation and Luo Qihong has given him the best conditions, but this guy is still not satisfied and wants more benefits, which is a bit shameless.
The Cabbage Patch Doll is not yet famous, and no one can predict the toy's popularity like him, so he is sure that no trading company dares to agree to such conditions.
Seeing that Ding Xiongzhao was still thinking about it, Luo Qihong decided to retreat instead of advancing, saying, "Ding Sheng should think about it first, or compare it with a trading company of the same trade. If he feels that the conditions of Hexiang Trading Company are the best, he decides to go with Hexiang." For trade cooperation, please call me again."
Ding Xiongzhao glanced at Luo Qihong and felt that there was no need to make a decision in such a hurry, so he would compare it first.
As a result, this discussion seemed to end on bad terms.
Back to Zhaoan Real Estate Company.
Cheng Jianshen hurried over to report on his work and told Luo Qihong a big event.
"The Hong Kong government has decided to put the 144,000 square feet of land at the Central Bus Terminal up for bidding. The base price is NT$3 billion."
Hearing this, Luo Qihong was stunned. At its peak last year, this piece of land was extremely valuable. It's more than 7 billion, but now the asking price is less than half. This is really half sale and half free.
However, when I think about the previous life’s Land Company winning the bid for the Central Bus Terminal project with NT$4.755 billion, I feel that it is not that cheap anymore.
“It seems that today’s local market is really in trouble. Some time ago, the auction price of land in Admiralty exceeded 26,000 yuan per square foot. Then this land should be worth at least 38 Billion yuan." Luo Qihong said with a wry smile.
In fact, the bus terminus land is located in the core area of Central and is not comparable to the Admiralty area. The price of 26,000 yuan per square foot is low, and even 30,000 yuan per square foot is profitable.
The Hong Kong government is not a charity. The Hong Kong government deserves at least half of the credit for the high land prices in Hong Kong.
“Since last year’s land adjustment signal was sent out, the prefecture and city have been worse than the situation in the first half of last year, but it is not bad in the end. There is still some hope.” Cheng Jianshen expressed his opinion.
“When will the bidding start?” Luo Qihong nodded in agreement.
Having hope is the cruelest thing. It constantly tortures these real estate developers. Some people want to buy the bottom, some want to quit retirement care or change careers, or they are waiting for opportunities.
"In mid-April, the Hong Kong government has not yet given a clear time." Cheng Jianshen replied.
Luo Qihong smiled and said, "It's such a move again. Without giving a clear time, it is obviously to test the movement of the market and pull the local market."
Cheng Jianshen said, "The Hong Kong government has always done things like this. Colleagues I have become accustomed to it, and the Central Bus Terminal land is not something that ordinary companies can bid for. Only a few companies can participate.”
The amount involved is as high as 3 billion, and the only Chinese-owned companies are Sun Hung Kai Properties and Cheung Kong Holdings. These companies have the strength to compete, but there are many British and foreign-funded consortiums, so the competition must be quite fierce.
Of course, Luo Qihong also wanted to get involved, but unfortunately the price of this piece of land was higher than the market value of his company, so he could only think about it.
After all, including the construction costs of this piece of land, the funds required may exceed 8 billion yuan. Moreover, in a period when the real estate market is plummeting and the market value of real estate companies is plummeting, the plan to raise funds and issue shares is out of the question. .
Luo Qihong believes that it is a good thing that the Hong Kong government is willing to provide such a beautiful piece of land to stimulate the local market. As for the results, I am afraid it will not be very good, but it is better than nothing.
"How is the discussion with Jianian Real Estate going?" Luo Qihong asked, changing the subject.
Cheng Jianshen's face immediately turned sour, "Jianian Real Estate is still unwilling to let go, as it does not want to incur losses on these nine industrial buildings." "Huh!" Luo Qihong sneered a few times, "Ignore him, Stay in the cold for some time. There is no need to purchase from Jianian Real Estate. You can contact other owners."
"Yes!" Cheng Jianshen nodded slightly. He also felt that Jianian Real Estate was the best. Decline is inevitable, the situation is no longer appropriate, but we still have luck.
"Boss, the Tung Cheong Building on Cottonwood Road in Central, developed by Sino Real Estate Company, will be pre-sold after the Spring Festival. Do we want to acquire some?"
Luo Qihong took the documents submitted by Jianshen and read them. After a moment, he said, "I'm not interested in office buildings, but shopping malls can try to acquire them."
"Referring to the recent transaction records of medium-sized commercial buildings in Central, this Tung Cheong Building is probably worth NT$600-700 million per square foot. The price is over 2,500 yuan, and the two-story shopping mall requires about 50 million yuan, which is not expensive."
Seeing that the boss was interested, Cheng Jianshen said, "If it costs 3,000 yuan per square foot, It only requires 53 million yuan."
Luo Qihong saw Cheng Jianshen's greed and said with a smile, "Jianshen, do you want the company to take over the entire Dongchang Building?"
Cheng Jianshen nodded awkwardly, "If we can win the Dongchang Building, it will be a good thing for the company. In terms of funds, we can consider raising funds through rights issues."
"The current market value of Zhao'an Real Estate Company is still It’s not as good as a Dongchang Building, and the amount of funds raised is very limited,” Luo Qihong sighed, not having much hope in raising funds through rights issues.
“I asked General Manager Bai of De’an Company. Zhaoan Real Estate can definitely raise 300 million yuan, so we only need a loan of 400 million yuan at most, plus the current loan of 140 million yuan. By then, the market value of Zhao'an Real Estate Company will definitely exceed 1 billion yuan, and the debt ratio will increase to 54%." Cheng Jianshen became more and more excited as he spoke.
There are not many real estate companies in Xiangjiang with a market value of over 1 billion yuan, probably around 20.
If Zhaoan Real Estate Company can enter the club with a market capitalization of 1 billion yuan, it will be a historic leap, which will bring many benefits to Zhaoan Real Estate Company.
However, the prerequisite for the success of this plan is that the city will not collapse. However, Luo Qihong, who is well aware of the historical trend, is worried that Zhao'an Real Estate Company's liabilities are too large and will face the crisis of bankruptcy during the two years of negotiations.
But owning a medium-sized commercial building in the Admiralty area was indeed very tempting, and his little heart was pounding.
“Who are the opponents for whole-building acquisitions?” Luo Qihong asked.
Cheng Jianshen shook his head decisively, "No, the colleagues who have contacted Xinhe Real Estate Company for the time being all want to acquire several floors of office buildings. There are also shopping malls, but no one is willing to acquire the entire building."
< br> Luo Qihong lowered his head and thought deeply for a long time. It is true that the market value of Zhaoan Real Estate Company has doubled, but the liabilities of De'an Company and Zhaoan Real Estate will also increase a lot.
There are only 8 months left to welcome the "baptism". Can he clear the debts of Zhao'an Real Estate Company and De'an Company?
"You can continue to pay attention to the situation of Dongchang Building, and you can also contact Sino Real Estate Company, but don't make any promises." Luo Qihong still has not made a decision.
This Dongchang Building is related to various aspects and needs to be carefully considered.
If Tung Cheong Building is acquired, Siu On Real Estate Company will own two commercial buildings in Central. The value of these two buildings alone will exceed NT$800 million.
After a while
Luo Qihong picked up his suit jacket and walked out of the office door.
De'an Company Office
He summoned Bai Jinyan, and naturally asked about the feasibility of Zhao'an Real Estate Company raising funds for rights issues.
"You told Cheng Jianshen that Zhao'an Real Estate Company can raise 300 million yuan, and De'an Company holds 42% of the shares. It needs a rights issue of 130 million yuan. Can De'an Company really raise it? Luo Qihong said with a serious face.
Bai Jinyan pursed his lips and wondered, "I can still get it out by piecing together some here and there, but I need to pledge my equity in Zhao'an Real Estate Company."
mortgage! ?
Isn’t it just that it can’t be taken out?
Luo Qihong suddenly felt that Bai Jinyan was acting like a big boss. Although De'an Company had expanded dozens of times, the funds were still insufficient.
“I am considering whether I really want to acquire the Tung Cheong Building in Central worth NT$700 million. This is also related to the subsequent development of Dean Company, so I would like to hear your opinion.”
Bai Jinyan couldn't figure out what Luo Qihong meant, and even her attitude was very vague. She thought Luo Qihong was really undecided.
"I think Zhaoan Real Estate Company should acquire Dongchang Building at all costs. Although the city may collapse, even if the city collapses, Zhaoan Real Estate Company may not be able to acquire such a high-quality property as Dongchang Building."< br>
“Even if there is a chance, it will take a lot of time. I have referred to the economic crisis in 1973, and the property prices in Central only dropped by more than 20%.”
What Bai Jinyan said makes sense. Many of the properties are scattered among several owners, making it difficult to acquire them successfully.
For example, the merger business of Henderson Photo Industry Company is cheap, but it consumes a lot of manpower and material resources, and the time consumption is even more serious.
After the big slump, properties became much cheaper, but without the fund-raising and rights issue, it didn’t seem to be very cost-effective. Moreover, the current market situation is not very bad, and you can still make a difference.
(End of this chapter)