Chapter 506: Harcourt House and Windsor House
Chapter 506: Harcourt House and Windsor House
Lu Jiaxin instructed Gu Haifan to take Gu Xiuxiu to Repulse Bay next week to choose a mansion that she liked. She could decide how she wanted to decorate it and inform the butler or Secretary Zhang later.
After spending half an hour at the Gu residence, Lu Jiaxin received a phone call and left. Gu Haifan, now older and more understanding, knew that she had important matters to attend to and didn't insist that she stay for dinner.
Lu Jiaxin headed to Xin Xin Property and asked Tan Gang as soon as she saw him, "Is it true that Hongkong Land is planning to sell Harcourt House and Windsor House, as you mentioned on the phone?"
It was Tan Gang who had called her, sharing the news that Hongkong Land intended to sell these two buildings. That was why she rushed over. After all, Harcourt House (also known as Summer House) was located at 39 Gloucester Road in Wan Chai, a Grade-A commercial building situated between Admiralty and Wan Chai stations, and in close proximity to the Hong Kong Academy for Performing Arts. On the other hand, Windsor House was located at the intersection of Gloucester Road and Gage Street on Hong Kong Island in Causeway Bay.
Tan Gang smiled and said, "Boss, I have a friend who works at Hongkong Land. As soon as they knew you were interested in buying prime properties, they informed me about this opportunity."
The reason for sharing this information with Tan Gang was twofold: first, the more potential buyers there were, the better, as competition would drive up the selling price; second, if this transaction succeeded, they would expect a reward.
Lu Jiaxin inquired about the asking price for the two buildings, which totaled $2.5 billion. While the stock market crash had ruined many people, its impact on the property market was less severe than anticipated.
As the owner of a property company, Lu Jiaxin was well-informed about market prices and the value of landmark buildings in Hong Kong. She said, "Go ahead and negotiate with them. It would be great if you can get them to lower the price a little, but it's fine even if they don't."
Tan Gang's eyebrows lifted in delight.
Lu Jiaxin had been busy the past few days and hadn't visited the office, so this was her first opportunity to ask about the recent land and property acquisitions.
Tan Gang handed her a thick stack of documents, saying, "Boss, these are the detailed records of the land and properties we've acquired in the last month."
Lu Jiaxin carefully perused the first three pages before closing the file, saying, "Since I have some free time now, take me to see these newly acquired properties."
For land plots, they would visit the nearby properties as well, but those in remote locations could be skipped, especially since they didn't have much time.
Although she had spent a significant amount of money, her philosophy was to favor quality over quantity, so the number of properties was limited. After touring the sites, Lu Jiaxin expressed her satisfaction, saying, "Everyone has been working hard this month. Tan Gang, double the employee bonuses for this month."
Tan Gang was delighted and smiled, saying, "Thank you, Boss."
An extra month's salary was a modest amount compared to the year-end bonus, which would be the main attraction. Even though the company wasn't publicly listed, Xin Xin Property was now on par with established property companies.
With this in mind, Tan Gang asked, "Boss, a friend mentioned that our company could go public. Boss, do you think we should consider listing the company?"
He asked because he believed that their boss didn't lack funds and thus might not see the need to go public. After all, listing a company meant not only making financial information transparent to the public but also offering a portion of the ownership to the public through the sale of shares.
Lu Jiaxin chuckled, "If you already know the answer, why bother asking?"
She had no intention of becoming a landlord; how could she possibly list Xin Xin Property publicly? Doing so would not only require financial transparency and public oversight but also subject her to the whims of those traditionalists.
Tan Gang smiled and assured her, "Rest assured, Boss. I've already conveyed to them that with your financial might, there's no need to go public."
Companies went public primarily for two reasons: to enhance their reputation and to raise more capital to expand their operations. In the case of their boss, who could easily secure funds in the financial market, there was simply no need.
Upon returning home, Lu Jiaxin called Nie Zhan to inform him about the matter, "Ah Zhan, these two buildings are in excellent locations, and I want to acquire them both."
Nie Zhan hadn't heard the news yet, but he quickly understood the reason. "In a few years, Hong Kong will be returned to China, and Jardine Matheson, being a British-owned company, will gradually sell off their properties and transfer their assets. With your abundant cash flow, you should definitely seize this opportunity."
Speaking of this, Lu Jiaxin added, "These days, immigration is all the rage, but people don't seem to consider how challenging it is to survive abroad. By selling their Hong Kong assets now, they'll realize too late that they won't be able to afford to buy back into the market when they return."
There was once a story from the 1980s and 1990s about someone who sold their ancestral siheyuan (a traditional Chinese residence) to seek opportunities overseas. After more than two decades, they returned, thinking they would be celebrated as a successful returnee. However, they discovered that the money they had made abroad was not even enough to buy a well-located commodity house, let alone the siheyuan they had sold long ago.
This story also applied to those who immigrated from Hong Kong in the late 1980s and early 1990s. After selling their properties and leaving, they found that their endeavors abroad didn't pan out as hoped, and when they returned, they couldn't even afford to buy a house.
Nie Zhan didn't think it was worth worrying about, "The cost of immigration is extremely high, and nine out of ten citizens won't meet the requirements. As for the super-rich, their roots are firmly planted in Hong Kong, and they won't shift their focus abroad. They might keep a backup plan overseas at most."
Take Man Sang Properties and Man Sang Bank, for example. Where could they possibly relocate and achieve the same level of success? In Hong Kong, they were like dragons, but if they went to another country, they might not even be considered insects. And if they moved all their assets to a foreign country without prior preparation, they could easily be targeted and fleeced. So, those who left were mostly British nationals, middle-class, or small business owners.
News of the impending sale of Harcourt House and Windsor House spread quickly, and many parties expressed interest, with Chinese Estate being the most enthusiastic among them.
Zong Shimeng, upon hearing the news, called Lu Jiaxin, "Jiaxin, I have a fairly good relationship with the wife of the general manager of Jardine Matheson. Would you like me to introduce you to her?"
Lu Jiaxin felt there was no need and politely declined. Everyone in Hong Kong knew about her substantial wealth, and if Chinese Estate still wanted to compete, then so be it!
Armed with Lu Jiaxin's words, Tan Gang visited Hongkong Land to express Xin Xin Property's willingness to purchase the two buildings at a 5% premium. The stock market crash had impacted property prices, causing a downward trend. However, Jardine Matheson's decision to sell the two buildings wasn't influenced by the market conditions but rather their strategic considerations.
The investment department of Chinese Estate received the news and immediately reported to their boss, Mr. Liu, "Boss, I heard that Miss Lu made a killing in the stock market. She's now willing to pay a 5% premium for these two buildings. If we want to outbid her, she'll likely raise her offer further."
In a bidding war, the highest bidder usually won, but they were unsure of Lu Jiaxin's exact financial capabilities. Miss Lu seemed determined to secure these properties, and if they drove the price too high, they might end up with a loss if they won, or sour relations with Lu Jiaxin and Nie Zhan if they lost.
Seeing that his boss remained silent, the investment manager added, "Boss, Miss Lu paid over 20% more than the asking price for the Grand Century Place. If we want to outbid her for these two buildings, we'll far exceed our budget."
Hearing this, Mr. Liu decided to let the matter go.
(End of Chapter)
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