Hong Kong's new giants

On Wednesday, Cathay Real Estate announced the progress of asset restructuring: its total assets are 9.5 million, debts are 4.5 million, and net assets are 5 million.At the same time, Cathay Pacific Land announced that it will enter the hotel field.

In less than two months, Cathay Pacific Real Estate's net assets soared to nearly three times, which immediately delighted investors, and the stock naturally began to skyrocket accordingly, with an increase of as much as 10% on that day.

The next day, many media rushed to report.Among them, Standard Chartered (Asia) spoke highly of the management of New Era Real Estate (one of the shareholders of Cathay Pacific), and investors even believed that Lin Zuhui had the ability to turn stones into gold and rejuvenate.

Lin Zuhui brought Liang Zhenxun and Lu Donglai, two executives from the real estate department of the new era, to the Furama Hotel, No. 1 Connaught Road Central, Central, Hong Kong Island.

The Furama Hotel was officially opened in 1973. It was a prominent hotel for a time. It is worth mentioning that the first revolving restaurant in Hong Kong is located on the top floor of the hotel.

The disc embedded on the top of the tower is a revolving restaurant, where Ba Jin once had a meal.

The owner of this hotel is the "second generation gambling king" Fu Laorong family in Macau. The Furama Hotel consists of two lands, one of which was auctioned by the Fu family in 1952 for 360 million; the other land, Praya, is the old Swire Pacific Its headquarters has been entrenched by the sea since 1897.Fu Yinzhao bought the headquarters from Swire in 1954 in order to combine the two lands.

The two lands cost a total of 1200 million in cash. At that time, the average land price per square foot was around HK$500, which meant that the land covered an area of ​​2.5 square feet.

Regardless of the fact that the land is only 2.5 square feet, Lin Zuhui seems to remember a piece of information from his previous life. In May next year, the Hong Kong government will auction a piece of "Central Land King" - the former site of the fire station, which is near the Furama Hotel, covering an area of ​​only 2.26 square feet. , with a starting price of 4.8 million yuan, was auctioned by Hang Seng Bank at a sky-high price of 8.4 million yuan, and the later Hang Seng Bank headquarters was built.

In other words, the land of the Furama Hotel is now worth more than 5 million yuan!It will be worth more than 8 million next year!

Furama Hotel went public in 1985, with a current market value of only 8 million yuan and net assets of around 10 billion to 12 billion yuan.

After Lin Zuhui led two subordinates around the hotel, he said, "Let's go, let's go up to eat!"

Liang Zhenxun and Lu Donglai felt a little uneasy. Could it be that the boss wants to buy the Furama Hotel? This is a real snake swallow!

At present, the Fu Laorong family is taken over by his son Fu Yinzhao, and the Fu Laorong family holds 75% of the shares of Furama Hotel (25% of the shares need to be sold to the public for listing), so it is naturally impossible to buy from the stock market!

Therefore, if one wants to obtain the Furama Hotel, the only way is to open a gap from Fu Laorong's family and directly purchase the shares in his hands.

In this way, if Fu Yinzhao sees that Lin Zuhui intends to buy it, he can definitely pay a premium of more than [-]%, or even more than [-]%.After all, other people's market value is already lower than their net assets, and families of this kind of property are generally reluctant to sell unless you give too much.

The three of them came to the hotel's revolving restaurant, and they had a panoramic view of Victoria Harbor and Tsim Sha Tsui. This hotel building can be said to be a coastal building, because the building across the street is a very short municipal building - Xiangjiang City Hall.

Lin Zuhui's mind was not on eating. Looking at the scenery of Victoria Harbour, he felt heroic in his heart. He should own such a hotel to be worthy of his title of 'Merry Tycoon'.

Speaking of which, Lin Zuhui has memorized the history of the famous five-star hotels in Xiangjiang for half a century!

The 'Dame of the Far East' Peninsula Hotel established in 1928

The 'not first sight beauty' Mandarin Oriental Hotel established in 1963

The Central Hilton Hotel established in 1963

Hyatt Regency Hong Kong, Nathan Road, established in 1964

Furama Hotel established in 1974

These five hotels should be the five-star hotels in Xiangjiang before the 80s, and all of them are well-known.

As time entered the 80s, Chinese-funded forces rose, and a number of Chinese-funded five-star hotels were established one after another:

New World Regent Hotel opened in 1983

Tsim Sha Tsui East Shangri-La Hotel, which was put into use in 1981

There are only seven five-star hotels above, and well-known hotels such as the Marco Polo Prince Hotel in Harbor City and the Miramar Hotel in Tsim Sha Tsui are only four-star hotels.

Lin Zuhui also knew that from the late 80s to the early 90s, five five-star hotels sprang up on the island:

Among them, there are two convention and exhibition centers in Wanchai, both the people-friendly Renaissance Seaview and the luxurious Grand Hyatt Hong Kong;

Admiralty Taikoo releases luxury hotels at a rate of one every two years - JW Marriott (1989), Hong Kong Island Shangri-La (1991), Conrad (1993).

To sum up, if Lin Zuhui wants to own a five-star hotel, he must start with a soft persimmon.

After a simple meal, Lin Zuhui gave an order to his subordinate Lu Donglai, asking him to help him make an appointment with Fu Yinzhao.

Sure enough, Liang Zhenxun and Lu Donglai thought in their hearts that the boss really wanted to swallow an elephant like a snake.

"Boss, the price may be 10 billion, and Cathay City may be a bit difficult!" Liang Zhenxun said tentatively.

Lin Zuhui said indifferently: "If Fu Yinzhao really intends to sell us, then we will naturally use a large amount of bank loans! As for the debt issue, in addition to raising funds through rights issues, I will try my best to help Cathay City seek financial profits. Don't worry!"

Liang Zhenxun and Lu Donglai immediately gained confidence. They believed in their boss's financial ability, because until now, Lin Zuhui had never failed to invest in securities and foreign exchange.

For Lin Zuhui, the stock market is his cash machine!

Even if Cathay City does not make profits on futures contracts before the stock market crash next year, then Cathay City can also reduce its holdings in Furama Hotel before the stock market crash, and buy it back after the stock market crash, so that it can make hundreds of millions of profits; at the same time, You can also use offshore companies to earn a little short, but you don’t need to earn too much. A few hundred million less will not have much impact.

In short, as long as there is a bank that dares to borrow, he can swallow the whale.

What's more, even if there is no other profit, Cathay City can basically obtain sufficient ammunition by selling Wang Kee Building and raising funds twice through rights issues.

After all, Cathay City is backed by the entire new era real estate department, so there is absolutely no possibility of problems.

……

In the conference room of the Furama Hotel, Lin Zuhui led people to meet Fu Yinzhao, the second generation of Fu Laorong's family, who is very low-key in Hong Kong.

There are many such low-key wealthy families in Xiangjiang, and their family history is all out of the way. In particular, there are some bureaucrats, descendants of warlords, drug dealers and smugglers of Wan Qing and the Republic of China, who are even more reluctant to reveal their wealth.

Lin Zuhui came to the door at this node, and the timing was just right. Since the beginning of this year (1986), there has been a wave of immigration in Xiangjiang, and many rich people are preparing to emigrate.

Among them, there is the Chen Jun family of the "crocodile shirt" brand that Lin Zuhui has always kept in his heart. In his previous life, he sold the crocodile shirt as famous as "Bauhinia" to the Lin Baixin family of Lai Sun Group in September 1987.

What is the symbol of Hong Kong?

Except for Bauhinia, I am afraid that everyone will point to the leather shoes on his feet, the leather goods and clothes on his body and proudly tell you: crocodile shirt.

After an introduction, several people sat down in the meeting room!

Fu Yinzhao is a little old man who is almost 60 years old. He has always kept a low profile, and almost no photos of him appear in Xiangjiang media.

Fu Yinzhao took the lead in saying: "I have heard about Lin Sheng's achievements at such a young age, and seeing him today, I am sure he is extraordinary!"

He wasn't talking flattery, but showing his sincerity. As soon as he saw Lin Zuhui, he could see that although others were young, their momentum was not weak at all, and their face was full of spring-like confidence.

Lin Zuhui said with a smile: "Fu Sheng is too much! I think you know the reason why I took the liberty to disturb you this time. So I want to ask what you mean?"

First is the question of whether to sell or not, and then the question of price!

Fu Yinzhao said without hesitation: "The Fulihua Hotel is the ancestral property of our Fu family. The family has no intention of selling it. I'm afraid it will disappoint Lin Sheng!"

If you don't sell it, why did you agree to meet him? Could it be just to see how handsome you are?

Of course, Lin Zuhui didn't believe it, and said with a smile: "We are very sincere! After more than ten years of operation, Furama Hotel has chosen to go public. It must be valuable. We are willing to buy the shares from your family at a large premium!"

Let's speak louder first, if Fu Yinzhao answers, it means that their family also intends to sell.If you don't answer the connection, it means that others really don't want to sell.

In fact, the reason why Furama Hotel chose to go public was to repay its debts.During the Sino-British negotiations, many hotels suffered a lot of losses, such as Roche’s Regal Hotel, which lost hundreds of millions of dollars at one time, and then had to cut off its wrists and sell it to his son Luo Xurui.

Fu Yinzhao pretended to think for a while, and said, "How much is the premium?"

Lin Zuhui stretched out five fingers and said, "Based on today's market price, the premium is [-]%!"

How shrewd is Fu Yinzhao, otherwise he would not have sold his shares to Lin Jianyue at the price of 31 billion for the price of Fulihua with a market value of only 69 billion during the '[-] Asian Financial Crisis' in his previous life.

"Haha, the market value of Furama Hotel is obviously much lower than the net asset value. Lin Sheng is obviously not clear about this. The premium is [-]%, which may be equivalent to the net asset value, but this is our family's ancestral business, coupled with Xiangjiang's economy It is thriving, and this price is not attractive. Of course, members of our family may not agree to sell the Furama Hotel."

After being rejected, Lin Zuhui was not annoyed, and said with a smile: "It seems that I am not sincere enough, how about this, Fu Sheng and the family members mention it, and I will go back and reorganize the offer. Let's talk next time? Regardless of whether Mrs. Fu intends to sell it or not, we can drink tea together!"

What Lin Zuhui said was that he could raise the price, which made Fu Yinzhao look forward to it!

Furama Hotel has been going downhill in recent years, and its scenery is no longer prominent. After all, the decoration is too outdated, and it can no longer be compared with new five-star hotels. In addition, it has suffered a lot of losses in the past few years, so Fu is considering listing it .

"Okay, I look forward to meeting you next time!"

Walking out of the Furama Hotel, Lin Zuhui said to Lu Donglai beside him: "In the long run, the income of office buildings in Central is higher than that of hotels, so I am looking at this piece of land; as for hotels, maybe they have been in business for ten or twenty years. Demolish this building and rebuild an office building!"

Lu Donglai reminded: "Boss, that Fu Sheng might not agree easily, he might want to kill us!"

Lin Zuhui smiled, and said with a smile: "What is the value of a piece of land from 1982 to 1984?"

Lu Donglai immediately understood what Lin Zuhui meant. His boss was looking at the long-term interests. Central was originally a place where every inch of land was worth every penny. Now it was very difficult to obtain high-quality land and buildings in Central.

"Indeed, maybe after two years, our premium has gone back up."

Now a super building in Central is at the level of more than 10 billion, and what is even worse is the level of more than [-] million, and small buildings are also at the level of [-]-[-] million.

The key is to buy at a premium, unless someone else is in a hurry to immigrate with money, it is possible to pick up and earn, such as the Hongji Building purchased by Cathay City.

To be honest, for the purchase of Furama Hotel this time, the bottom line of Lin Zuhui's heart is a 16% premium, that is, the market value is calculated at 70 billion; if Fu sells 10% of the equity, Cathay City needs [-] billion funds to win it.

Of course, Lin Zuhui wants to fight for a premium of [-]%, after all, the stock market has not yet reached the madness before the August [-]th stock market crash.

……

Last week of October.

As Lin Zuhui expected, the Hang Seng Index opened above 2300 points, and the stock market was hot.

Wanhui Media raised 1.3 million yuan and Cathay City raised 3.2 million yuan, both of which were higher than planned.

The real advantage of the stock market boom is not the high fund-raising, but the very smooth fund-raising, and the new shares issued are basically swept away.

……

Friday, April 10.

Lin Zuhui led the team to the meeting room of the Furama Hotel, this time to audit the finances. If there is no accident, the two parties will sign a transaction contract in about ten hours.

Sitting in the conference room of the Furama Hotel, Lin Zuhui watched the auditors, finance, and lawyers review the company information provided by Furama. Everyone was busy, but his mood flew out of the office.

A few years ago, when Li Chaoren purchased Hongkong Electric in the hands of Landmark, it is said that he personally led a group of people and spent only 12 hours checking the financial report of Hongkong Electric, and then reached a 29 billion transaction.

Now, do I count as comparable to Superman Li?

For the purchase of the Furama Hotel, Cathay City paid an 70% premium to acquire 8.5% of the shares of Fu Laorong’s family; based on yesterday’s closing market value of 10.7 million, Cathay City needs to pay Fu Laorong’s family [-] billion.

Anyway, it was a deal of more than 10 billion, not to mention that I was still so young!

This transaction does not need to be paid in one lump sum, but is divided into three payments in three months, with the first payment being 3 million yuan.This allows Cathay Pacific City enough time to prepare the remaining 8 million cash.

Time passed by, around four o'clock in the afternoon, the answer has initially appeared.

Furama Hotel's financial problems are not too big. The asset value of the hotel is 12 billion, the debt is 0.8 million, and the net assets are 11.2 billion. In the financial report year from 1985 to 1986, the profit of the hotel was 4860 million yuan.

Naturally, Lin Zuhui didn't care about the low profit. What he valued was the value of Furama Hotel itself, and he planned to privatize it after the stock market crash in 1987.

Since there is no major problem, the two parties decided to sign a contract!

In the signing room, the two parties sat on each side, and the lawyers were finally checking the contract.

Fu Yinzhao joked with a smile: "Lin Sheng, there is a stipulation in the contract that if Cathay City does not pay the final payment within three months, then the booking fee and the Furama Hotel will be ours!"

Lin Zuhui said confidently: "As it should be, this is the price of breaching the contract. Xiangjiang is a society ruled by law!"

"Haha, Lin Sheng is very confident. It seems that the bank has established a good relationship!"

Lin Zuhui shook his head, and said calmly: "I haven't talked with a bank yet!"

Fu Yinzhao was astonished, and it took him a long time to kindly say: "As far as I know, apart from raising more than 3 million yuan through rights issues, Cathay City's financial situation is not very strong!"

"Don't worry, Fu Sheng, the bank will sell me face!"

Sure enough, he is young, and he is so aggressive in doing things. At this time, Fu Yinzhao thought so.

In fact, although Lin Zuhui did not negotiate with the bank first, even if there is no bank, Cathay City will not be a disaster.It has both a parent company and a brother company, and it can make up for it by trading Hongji Building and other properties to them!

What's more, when the situation is really desperate, Lin Zuhui can still sell blue chips to make up for it!

Of course, the banker will not reject Lin Zuhui's loan request, this is what he thinks in his heart.

After a while, after the lawyers of both parties confirmed that there was no problem, the two parties began to sign the contract.

At this moment, Lin Zuhui actually felt a little excited, this is a high-quality asset!

It seems that he paid a premium of 11%, but he knew that 69 years later, Fu Yinzhao actually sold his shares to Lin Jianyue, a prodigal son, at a market value of [-] billion, which almost caused Lai Sun Group to go bankrupt in the [-] Asian financial crisis.

In fact, Lin Zuhui has already planned to help Lai Sun Group digest three businesses, crocodile shirts, Asian TV, and Furama Hotel, just in time to save Lai Sun Group.

He is not afraid of losing money. Anyway, the stock market has endless money.

After the contract was signed, both parties carefully collected it, and Cathay Pacific City will hand out a check for 3 million yuan.

But it's the weekend soon, so Fu Yinzhao can only exchange money on Monday.

After the contract was signed, representatives of Cathay City and Fu held a small press conference in the hotel to officially announce the conclusion of the deal.

……

The next day, those who are accustomed to reading newspapers discovered a big news: Cathay Pacific City purchased 10.7% of the Furama Hotel owned by the Fu family at a sky-high price of 70 billion.

The citizens who are familiar with Cathay City were immediately stunned. This company has just completed asset restructuring, and the money from there has purchased such a large amount of assets.

"The debt ratio is too high! If I had known it earlier, I wouldn't have bought Cathay City shares! This should be bad news!"

"The snake swallows the whale! Lin Zuhui made a bad move this time."