met free Chapter 367 Picking up the bargains
Chapter 367 Picking up the bargains
The debt ratio isn't the problem; the important thing is location.
He turned around.
What is the potential property value of Lok Fu Building?
"At least 2 million, and moreover..."
"And what?"
"Xie Jiyuan has already driven the stock price up to 1.9 yuan."
Jiang Tiansheng smiled slightly.
"It seems the landlords' association really has some tricks up its sleeve. As agreed, give them ten million shares."
Meanwhile, the news that Hongpu Real Estate had acquired three commercial buildings in succession caused a sensation in the industry.
Li Yude sat in his office, staring at the stock price chart of Hongpu Real Estate on his computer screen.
"Lin Sheng, what do you think?"
He asked Lin Luoqi, who was standing to the side.
Lin Luoqi pushed up his glasses.
"Jiang Tiansheng made a brilliant move. The debt ratio has increased, but the asset quality is indeed good."
"Arrange to meet him."
Li Yude closed his laptop.
"It's time to talk about acquisitions."
In the private meeting room of the Peninsula Hotel, the aroma of tea wafted through the air.
Li Yude personally poured tea for Jiang Tiansheng.
"Mr. Jiang, Hongpu Real Estate is developing well, but its debt ratio is a hidden danger."
Li Yude got straight to the point.
Jiang Tiansheng picked up his teacup and gently blew on it.
"What insightful opinion does Mr. Li have?"
“We, Dehe Real Estate, are willing to invest 1.4 million yuan to acquire approximately 30% of the equity.”
Li Yude put down the teapot.
"The final shareholding is 44%, and the remaining 14% will be paid one year later."
Jiang Tiansheng put down his teacup, the bottom of which made a crisp clinking sound against the saucer.
How is the interest calculated?
"Monthly payment, 8% annualized return."
The meeting room fell silent for a moment.
Jiang Tiansheng tapped his fingers lightly on the table, the rhythm slow but powerful.
"can."
He finally spoke.
"But I have a condition."
"please say."
“Hongpu Real Estate needs to cooperate with Zhaoan Real Estate. I want 5% of the new shares at a low price.”
Li Yude and Lin Luoqi exchanged a glance.
make a deal."
On October 15, Paramount Company issued an announcement stating that it would sell 44% of its Hongpu Real Estate shares to Dehe Real Estate. The news was met with enthusiastic market reaction.
"Mr. Jiang, the stock price has already risen by 15%."
Su Qishan strode into the office.
"The Paramount department store has recovered 1.4 million yuan in funds."
Jiang Tiansheng stood by the window, sunlight filtering through the glass and casting dappled shadows on his face.
What are their next plans?
"Pay off 1.3 million in debt, and then acquire a commercial building worth 5000 to 6000 million."
Su Qishan opened the folder.
"Also, here is the information you requested about the Jinghua Center Building."
Jiang Tiansheng took the document and quickly browsed through it. Built in 1972, 22 stories, 27.2 square feet, a multi-functional complex… His gaze lingered for a moment on the price tag of “5200 million yuan”.
"Intense competition?"
"It's very competitive. At least five companies are bidding."
Jiang Tiansheng closed the document.
"Your suggestion?"
"We've offered 5600 million; we're confident we can secure it."
Jiang Tiansheng walked to his desk, picked up a pen, and wrote a number on a sticky note.
Offer 5500 million upfront and see their reaction.
He raised his head.
"I'm interested in the shopping mall and retail space; the retail potential in Causeway Bay is limitless."
Su Qishan nodded and noted it down.
"I'll make arrangements right away."
The meeting room of Hongpu Real Estate Company on the 19th.
The conference table was filled with company executives, and the projector beam shone on the screen, displaying the financial data of Best Real Estate Co., Ltd.
Wood tapped the laser pointer with his finger, and the red light circled the number "debt ratio 77%".
"Ladies and gentlemen, this is the current situation of Best Property Holdings. They own shopping malls and office buildings in prime locations in Central, 41 luxury homes in Repulse Bay, and land in Tsuen Wan and Tuen Mun, but..."
"These high-quality assets are all suffocating under the weight of high debt."
CFO Zhang Ming has a wise eye.
"The property rent is barely enough to cover the debt interest, and several land development projects have been halted. Simply put, they are like a drowning man carrying a gold brick."
A soft murmur arose in the conference room.
Jiang Tiansheng sat at the head of the table, his fingers rhythmically tapping on the table.
What is the founder's attitude?
"The founder is 76 years old, and the heir is a playboy who spends all his time on yachts and in casinos."
Wood switched the slides to show a photograph.
A slick-haired young man, with his arms around two bikini-clad women, was drinking heartily on a yacht.
They just want to cut their losses and get out now.
Li Yude chuckled softly.
"Isn't this our opportunity?"
He walked to the projection screen.
"Best Property's assets are valued at over 500 million, but its liabilities are as high as 380 million. If we acquire it at market price, we only need to pay around 120 million to control a listed company with a market value of over 100 million."
"The problem is the 380 million debt."
Jiang Tiansheng said coldly.
"Once we acquire it, it's ours."
Lin Luoqi interjected.
"Mr. Jiang, the debt can be restructured. The key is Best Inc.'s land development capabilities in Tsuen Wan and Tuen Mun, which can make up for our shortcomings."
He was in his early forties, and when he spoke, the corners of his eyes were raised, carrying a hint of calculation.
The meeting room fell silent as everyone waited for Jiang Tiansheng to make his statement.
He was silent for a moment, then suddenly asked.
What's Zhao'an's attitude?
Li Yude's lips curled up slightly.
“After yesterday’s press conference, I had coffee with their vice president. They were very interested in the collaboration, especially in this kind of bargain project.”
"Get a bargain?"
Jiang Tiansheng snorted coldly.
"A cheap deal with debts of 380 million?"
"General Manager Jiang..."
Li Yude remained calm and composed.
“Acquiring well-managed companies is too expensive for us to afford. Best Inc. has high debt but excellent assets. As long as we can revitalize those stalled projects, we can turn things around within two years.”
Lin Luoqi echoed.
"Mr. Li is right. If we join forces with Zhao'an, the financial pressure will be much less."
Jiang Tiansheng's gaze swept across the two faces, finally settling on the CFO.
"Zhang Ming, what do you think?"
Zhang Ming opened the folder.
"From a financial perspective, the risk is high, but the potential return is even greater. If we can secure bank support, the debt can be repaid in installments. The key is the acquisition price. The lower the better."
"What about the competitors?"
Jiang Tiansheng turned to Wu Defeng.
Wood switched slides.
"Currently, there are two companies. Century City Co., Ltd. has offered 8% of the market price, and they are slightly stronger than us; Xinchang Real Estate is weaker, but has an advantage in land development. They are mainly interested in Best Property's property assets."
"City of the Century..."
Jiang Tiansheng squinted.
"The Zheng family's company."
Li Yude nodded.
"The Zheng family patriarch has a keen eye; they have their eyes on the entire company."
Jiang Tiansheng suddenly slammed his hand on the table.
"Then we can't let them succeed!"
He walked up to the projector.
“Best’s land is very important to us, especially the Tuen Mun area, which is right in line with our new project.”
He turned to Li Yude.
"How are the talks with Zhao'an going? How will the equity be distributed?"
Li Yude was prepared.
“I propose that Hongpu take 40% as the major shareholder, Zhaoan take 25%, and the remaining 35% remain in circulation on the market. As for operations, Mr. Lin will be responsible for the daily operations of Best Inc.”
Jiang Tiansheng frowned.
“Zhao An’s 25% is too little; they will want 30%.”
30%..."
Li Yude pretended to think.
"That's possible, but we must have absolute control."
Jiang Tiansheng nodded.
"Once the company is on the right track, Zhao An must reduce his holdings. I will personally talk to Jiang Tiansheng."
Lin Luoqi suddenly interrupted.
"Mr. Jiang, if they are reducing their holdings, could you give priority to Hongpu?"
Jiang Tiansheng glanced at him and said meaningfully.
"Of course. We shouldn't let the good stuff go to outsiders."
Wood continued his report.
"Best Inc.'s major shareholder holds 42% of the shares, which are currently valued at 1.17 million yuan. He wants to sell them for 4914 million yuan."
"market price?"
Jiang Tiansheng sneered.
"With such high debt, you still want to pay market value?"
Li Yude was confident.
"We can offer 9% of the market price, that's the maximum. If the other party doesn't agree..."
He looked around at everyone.
"We also have a Plan B."
"Oh?"
Jiang Tiansheng raised an eyebrow.
"First, acquire 30% of the equity, and then inject capital by issuing special new shares to dilute the equity of other shareholders and gradually strengthen control."
Li Yude's eyes gleamed.
Lin Luoqi clapped and cheered.
"Brilliant! This way, we can control costs and avoid swallowing too much debt at once."
Jiang Tiansheng pondered for a moment and nodded.
“Okay. Defeng, you go and contact Best Inc.’s major shareholder and offer 7% of the market price. Yude, you’re in charge of finalizing the details with Zhaoan. Rocky, prepare the plan to take over Best Inc.”
After the meeting, Jiang Tiansheng gave Lin Luoqi a wink.
The two left the building one after the other and got into a black Mercedes.
"old place?"
Jiang Tiansheng asked.
Lin Luoqi nodded.
"I also have something to tell you."
Fifteen minutes later, the two were sitting in a private room at a secluded teahouse.
Jiang Tiansheng slowly and methodically washed the teaware.
"Did you and Yude discuss the acquisition beforehand?"
Lin Luoqi paused in his teacup-holding motion, then smiled.
"Mr. Jiang is indeed insightful. That's right, we did meet last Friday."
He put down his teacup and lowered his voice.
"To be honest, I'm a bit short on funds. I've already sold 17% of my shares in Yiren Real Estate, but I still haven't raised enough."
"Oh?"
Jiang Tiansheng's eyes were sharp.
"So, once you acquire Best Property, how do you plan to allocate it?"
"We'll split the land development 50/50, but I'll keep the property."
Lin Luoqi stared directly at Jiang Tiansheng.
"What does Mr. Jiang think?"
Jiang Tiansheng suddenly laughed.
"Win-win".
He poured Lin Luoqi a full cup of tea.
"However, your family has no objections to you selling your shares in Yiren?"
Lin Luoqi's expression suddenly darkened.
"I have decided to start from scratch."
He gripped the teacup tightly.
"How much have I sacrificed for the family over the years? In the end, I can't even get a vice president position. This time, I'm determined to fight for what's rightfully mine!"
Meanwhile, in the top-floor office of Yiren Real Estate, the Lin brothers, Luoxun and Luoshi, were smoking.
"The third brother is determined to rebel this time."
Lin Luoshi stubbed out his cigar sharply.
“He joined forces with Jiang Tiansheng and Li Yude to take over Hongpu Real Estate. If we don’t restrict him, he will turn against us sooner or later.”
Lin Luoxun exhaled a smoke ring and squinted his eyes.
"He's practically detached from the family. The old man has always felt guilty about being driven out, and now he's forged such a powerful alliance..."
He shook his head.
"It's not easy to deal with."
"How about we cooperate with Jiang Tiansheng?"
Lin Luoxun suddenly made a suggestion.