Chapter 176 I want to acquire all the theaters owned by your group
"Mr. Su, let's get back to the business. It's like this. I participated in the auction held by the government last month. It was over Chai Wan, near Pottinger. In the mountain area, we won the bid for a piece of industrial land of 320,000 square meters. The winning bid fee was 85 million Hong Kong dollars, which was used to build a large industrial park. In addition, the overall construction cost was about 100 million Hong Kong dollars. That is to say, the overall investment capital is approximately HK$185 million.
Our group has carried out multiple investment projects this year. The return of funds has not been so fast, so funds are somewhat scarce, but we do not want to miss this development project, so I gritted my teeth and took the photo. With an investment of nearly 200 million, it was not easy to find a partner. I had also heard a little bit about Mr. Su’s personality, and I happened to meet Mr. Su at a charity auction, so I just want to see if Mr. Su is interested in this investment project."
Lin Boxin said what he said at the charity auction again, but this time he said it in more detail. At the same time, he also said something about it. He took out a stack of information from his bag and handed it to Su Cheng.
Su Cheng received the information, and the first one was a map of the location of the industrial park, which was drawn in great detail.
At the back are the details of the plot and proof of a successful auction.
Su Cheng took the location map and looked at it.
This location is not too remote. It is on the southeast side of Chai Wan, at the foot of the northeastern part of Pottinger Mountain. Further to the northeast is the strait. On the opposite side of the strait is Tseung Kwan O. The location is still very good. Not bad.
The disadvantage is that it is backed by the Chai Wan Chinese Permanent Cemetery, and one-third of this land is a low mountain. If you want to fully develop it, you need to bulldoze it or build against the mountain, which is a bit difficult. big.
Of course, the biggest advantage is that the land price is not expensive.
Chai Wan is a corner of the urban area and has always given people the impression of being far away.
In fact, Chai Wan was developed very early.
In 1959, the original villages in Chai Wan were demolished and converted into 27 resettlement buildings; in 1968, the population of Chai Wan increased to 80,000 people; in the 1970s, a large number of factory buildings were built in Chai Wan, which Chai Wan became a new industrial area.
Compared with Sha Tin, the location here is actually better. It is located on the east side of Hong Kong Island and the distance to Causeway Bay is less than ten kilometers.
Compared with the current Tseung Kwan O, it is even more advantageous.
Moreover, because of its early development, the population here has already reached hundreds of thousands.
85 million Hong Kong dollars is indeed not expensive to acquire such a large piece of land.
This is not a place with few people like Tseung Kwan O. It is an area that has been developed for twenty years and is very mature.
"Mr. Lin, in principle, I am quite interested in this investment, but I don't know how you want to allocate the investment proportion?" Su Cheng put down the information and asked with a smile.
"The two of us can form a joint venture, and you can hold up to 49% of the shares. As for investment and profit distribution, it will also be divided according to this proportion. I wonder what Mr. Su thinks?" Lin Boxin said simply and clearly .
Lin Boxin's intention is to become the major shareholder, which is normal. After all, this is the land he has won, and it is impossible for others to turn around.
"Basically no problem. Let's do this. I will ask my Hutchison Real Estate Company to contact your company and we will discuss it in detail at that time." Su Cheng said directly.
Eighty-five million Hong Kong dollars to acquire 320,000 square meters of land is simply a great deal.
As for the subsequent HK$100 million to build a large industrial park of 320,000 square meters, it is naturally not high.
The current Xiangjiang Industrial Park is not the popular metal factory, but the popular building factory.
Many small factories, when they lack funds, will only rent one or half a floor for production and processing. Most of the industrial buildings are built with more than five or six floors, and some are even built with eight or nine floors.
So, the annual rent for each industrial building is very considerable.
Although this land is close to the tomb and even part of it is mountainous, the land price is really very cheap, so cheap that its shortcomings can be ignored.
Of course, Su Cheng is not a professional, so Hutchison Real Estate Company will naturally have to investigate the detailed situation before discussing the details of cooperation.
This kind of cooperation involving more than hundreds of millions of Hong Kong dollars cannot be achieved in just one or two sentences.
"Okay, then I hope we have the opportunity to cooperate." Lin Boxin nodded.
He also knows that it is not easy to succeed in such a large-scale cooperation.
However, since Su Cheng has verbally agreed, the next step is basically to proceed to further discussions between the two parties.
The current economic environment can only be said to be average. It is not easy to find such a large partner, and it is even more difficult to find a reliable partner.
It is not easy to find a strong and well-funded partner like Su City.
"Mr. Lin, I would like to take the liberty to mention, does your Lixin Group have a cinema company?" Su Cheng asked.
The key to the success or failure of a movie lies in the two links of distribution and stores, and stores refer to movie theaters.
The main reason why Su City invited Lin Boxin this time was to focus on the cinemas owned by Lixin Group.
“Yes, it seems that Mr. Su knows our Lai Sun Group quite well. We started to try to invest in cinemas in 1975 and now have 6 cinemas under our umbrella. However, the cinemas are not very profitable. The six theaters are all located in the most prosperous areas of the city center, and the profits they create for us in a year are only a fraction of those in the real estate industry. Investing in this industry is considered to be a bit of fun," Lin Boxin said with a smile.
In the 1970s, the Hong Kong government stipulated that each district in Hong Kong must have a certain number of cinema seats based on the population. After the real estate developers obtained the land, they were responsible for building a cinema with enough seats in the shopping mall. They were not allowed to use it for other purposes in the future. If they were used for other purposes, they would need to After paying an astonishing land premium, there are now hundreds of movie theaters in Hong Kong.
With six cinemas under its umbrella, Lai Sun Group is considered a good film force.
Moreover, the cinemas under the Lisun Group have a very good reputation because their services, environment and equipment are among the best in Xiangjiang. Su City has also heard of this.
This is also the reason why Su Cheng wants to take over Lin Boxin's cinema for his own use.
Word of mouth is very important for a movie theater. A good reputation often takes months or even years to accumulate.
In fact, Sioux City can open a new movie theater now. The cost of a movie theater is not high for Sioux City. A small and medium-sized movie theater can be opened for a few hundred thousand Hong Kong dollars.
It’s just that small-scale cinemas often don’t attract many audiences.
Moreover, at present, there are basically movie theaters in major places in Xiangjiang City. If we add more cinemas, the competition will be too great. It is better to acquire ready-made cinemas.
"I want to acquire all the theaters under your group. I wonder what conditions Mr. Lin has?" Su Cheng asked directly.
(End of this chapter)