Reborn in Hong Kong: The Tycoon Grows Up

The Fortune magazine reporters left with satisfactory results. What they saw and heard at Heiyun Group this time exceeded expectations. Not only did he learn about Bao Zixuan’s product design concepts and inspirations, but most importantly, he also learned about the emotional life of Mr. Bao. It was just a scandal before, after all, the person involved didn't say anything, but now the richest man Bao has admitted it personally, so it seems that they are basically inseparable.

But at the same time, it will also make a large number of young women in the world sad and cry. The title of the world's number one diamond king is not for nothing.

The reporter of Fortune magazine has gone back to sort out the content of this exclusive interview, and will be able to meet readers in the next issue of Fortune magazine. At the same time, Bao Zixuan's photo will also appear on the cover of the current issue, as the most influential economic figure in 1982.

However, these have little to do with Bao Zixuan, because he is about to start talks with Lee Shau Kee.

Li Shauji didn't quite understand Bao Zixuan's invitation at first, but as a tycoon-level figure who has been in the shopping mall for many years, he could still make some guesses.

After Lee Shau Kee returned home, he began to analyze what Bao Zixuan wanted most in his hands. After sorting it out, he found that only the richest landowner in the New Territories wanted it most.

As one of the Five Real Estate Tigers of Xiangjiang, Lee Shau Kee’s development route is very different from the others. Henderson's main business comes from two aspects. One is the development of old buildings.

Many people in Xiangjiang have immigrated or left Xiangjiang, but their ancestral homes have not been sold. Lee Shau Kee arranged for people to advertise all over the world, and anyone in Hong Kong could see it. Thinking that all the problems can be solved by just going back to Xiangjiang, it doesn't matter where the house is placed; many people don't plan to return to Xiangjiang to live, and will basically sell their houses to Henderson Development. This is the most time-saving and labor-saving approach, and Henderson will solve many problems.

The price given by Lee Shau Kee is relatively reasonable and he will not deliberately lower the price just because he is not in Hong Kong. Therefore, Lee Shau Kee is definitely the first person in Hong Kong to demolish and develop old residential areas.

The second aspect is that he has acquired a lot of land in the New Territories and can be said to be one of the largest landowners in the New Territories. What Bao Zixuan wants most is the land in the New Territories. As for Henderson Land's other projects, Bao Capital may not be able to take a fancy to them.

Now that he knows what the other party wants, Lee Shau Kee feels more at ease. This way he has a bargaining chip and will not be so passive.

Still at the Peninsula Hotel, Li Shauji booked a room and waited for Bao Zixuan to arrive. He knew that this was his only chance to get the shares of Baohuodong Mining Company. After this time, he might never get more in this life. Because as long as financial data is released, Bao Huodong Mining Company will definitely be the second largest company in Hong Kong by market value, and he will definitely not be able to afford many shares.

Knowing that Lee Shau Kee was waiting for Bao Zixuan, Michael Kadoorie chatted with him in the room for a while. It wasn't until Bao Zixuan came over to say hello that he left. The two bosses must have something to talk about. It's a matter of business secrets that you don't want people to know, so there's no need to complain about it.

Bao Zixuan: "I'm very sorry for keeping Li Sheng waiting for so long."

Lee Shau Kee: "Sheng Bao is joking, I just arrived a little early; you are not late either, you are 5 minutes earlier than we agreed."

The waiter began to serve the two of them, and everyone chatted while eating without wasting time.

Bao Zi

In fact, Bao Zixuan didn't want to come over to negotiate on his own, but sometimes respect was more important than anything else. If a professional manager is sent over, Lee Shau Kee will feel that he does not pay enough attention to him, which will make the gain outweigh the loss.

Lee Shau Kee said with a smile: "I didn't react at first. After I went back, I cleaned up my assets. I found that the only thing Bao Sheng was interested in was the land in the New Territories."

"Sheng Bao wants to build the group headquarters in the New Territories, and anyone with a discerning eye can see that. Although I really want to get the shares of Bao Huodong Mining Company, after all, this is a hen that lays golden eggs. But as a friend, I still have to remind you The situation in your New Territories is very complicated and not suitable for large-scale construction. I wonder if Mr. Bao knows the policy of determining authority."

"Ding" means an adult man, a strong man, and "quan" means rights and interests; therefore, the "Ding Quan" policy means that when boys of Xiangjiang original residents become adults, they have the right to apply to the government for legal land to build their own houses.

After the June 7th Movement in 1967, and in the 1970s, the government planned to develop the New Territories. In order to gain the support of the original residents of the New Territories, the then Hong Kong government implemented the "Small House Policy" in December 1972, requiring people to be over 18 years old. The paternal line originated in the 1890s. A male aborigine of Xiangjiang who is recognized as a rural resident in the New Territories.

Each person can apply once in his lifetime to build a 3-storey small house with an area of ​​no more than 65 square meters per floor within the approved area without paying land premium to the government. The right to build a small house is a small right.

On November 29, 1972, when the New Territories Home Affairs Director Lai Dun-yee announced the small house policy to the Legislative Council, he emphasized that small houses were only a short- to medium-term measure. The purpose is to provide the original residents with a better living environment through the construction of small houses. This reflects that the small houses are only a temporary compassionate policy and do not recognize the privileges of the original residents.

The government has also established a "restriction on sale and transfer clause", which stipulates that if indigenous residents who own small houses want to sell or transfer their small houses to non-indigenous residents, they must apply to the government for land premium and obtain the written consent of the Land Commissioner before proceeding. The land for building small houses is usually villages or agricultural land in the New Territories or outlying islands.

According to estimates by the New Territories Heung Yee Kuk, there are 240,000 male indigenous residents who have the right to apply for the construction of small houses (commonly known as "Ding Rights"). The Rating Ordinance enacted in 1973 stipulates that houses in rural areas, including small houses, are exempt from paying rates.

In the future, people often say that 70% of the land in Xiangjiang is undeveloped, which has a lot to do with the decentralization policy. The situation in the New Territories is too complicated. Many people who own small houses are unwilling to move out, or they want to receive huge demolition compensation.

When developers want to develop, they need to pay the land price difference to the government and also compensate the small house owners for the demolition costs. Considering the housing prices in the New Territories, there is simply no value or necessity for development.

Bao Zixuan: "I'm not very good at real estate development, so I asked Li Sheng for some advice."

Lee Shau Kee: "When housing prices in Hong Kong were at their highest, many people wanted to develop the New Territories, but the project was stranded because of the complicated situation. To develop the New Territories, you need to buy a lot of small houses, and at the same time, you have to buy the land next to the small houses from the Hong Kong government. Not only that, but also the land next to the small houses. We pay the difference in land price for buying a small house to the Hong Kong government. The land price looks very cheap, but in fact we need to pay double or even higher land price.”

"It doesn't matter if you just pay a little more for the land, but I heard that real estate developers want to develop the land. Many people want to build small houses near the land. There are 240,000 people in the entire New Territories who are eligible."

"Imagine that high-end properties are surrounded by odd-shaped small houses. Who else would come here to buy a house?"

Bao Zixuan didn't expect the matter to be so complicated. It would be strange if he didn't lose his life if he developed real estate.

Bao Zixuan: "Then why is Li Sheng still buying so much land in the New Territories? Aren't you worried about this? We are all friends. Since you can see that I want to build the Heiyun headquarters in the New Territories. As a person who has been engaged in real estate development in Hong Kong for many years A real estate tycoon should have a coping strategy. Li Sheng can give you some advice, but don't keep it secret, otherwise you won't be a friend enough."

Li Shauji really wanted to get some shares of Bao Huo Dongqian Mining Company, but many things had to be explained clearly in advance. Otherwise, if Bao Shaoji didn't figure out what was going on, he would definitely blame himself for trouble after construction. It's not a good thing to offend such a person. When you encounter a crisis in the future, if someone steps on you, you will really be unable to get up.

Lee Shau Kee: "Actually, I have also considered this issue, but Henderson Development mainly develops low-end properties in the New Territories, and these customers do not have such high environmental requirements."

"The New Territories is about 975 square kilometers. Of course it includes 233 islands; but the main area is also 300 square kilometers, which is much larger than Kowloon and Xiangjiang Island combined."

"If you want to vigorously develop the New Territories, you must solve the issue of land rights. The most direct way is to buy from people with Ding rights. Then compensate the Hong Kong government for the land price, but the cost of doing so will inevitably be very high."

"Another way is to take over Tai Mo Shan. As the highest peak in Hong Kong, it is very suitable for building holiday villas. However, the area is a bit large, and it needs to get through the relationship with the Hong Kong government. After all, it is a public green space."

"After taking over Tai Mo Shan, we purchased the land between Tai Mo Shan and Tin Shui Wai. The total area is nearly 70 square kilometers, which is not much smaller than the area of ​​Xiangjiang Island."

“In such a large place, we can build whatever we want, and we can continue to expand outwards.”