Chapter 2209 Ambition and Limits (First Update)

Speaking of real estate, Huo Jianning, who has been flying to Japan from time to time in recent months, has really experienced the joy of spending a lot of money.

Two years ago, Huo Jianning was madly sweeping the floor in Hong Kong with 100 billion Hong Kong dollars in his hands.

In the end, of course, his 100 billion Hong Kong dollars were not used up.

But because he adopted an installment payment model, the total funds he spent actually exceeded HK$300 billion.

Such a large-scale acquisition made Huo Jianning fall in love with the aura of a rich man.

No wonder so many people like to throw money at people. It's really cool to look down on everything like this.

He originally thought that spending half a year of frantically sweeping floors and buildings in 1984 would be the pinnacle of his money use in his life.

Unexpectedly, more than a year later, he would start making large-scale acquisitions again.

This time Huo Jianning does not have 100 billion Hong Kong dollars, but he has 5 billion US dollars.

Originally, Yin Jun told Honda that the first batch would be 2 billion U.S. dollars, but part of the sales of Kirin Computer happened to be recorded, so Yin Jun took out 5 billion U.S. dollars in one go and exchanged it for Japanese yen.

At the same time, seeing the price of the yen rising day by day, Huo Jianning, after discussing with Le Yiling and Yin Jun, immediately took out a loan of 100 yuan from the Japanese branch of Sumitomo Bank, Mitsui Banking Corporation and Citibank of the United States. billion dollars.

The loan term is 10 years, and the annual interest is not expensive, about 6%.

For large-scale commercial loans, the exchange rate is definitely not as high as borrowing hundreds of thousands or millions.

When loan capital reaches billions of dollars, low interest rates are normal.

Then, the US dollars were directly converted into Japanese yen and deposited into these three major banks.

The transaction was converted into Japanese yen at the end of last year.

As a result, now, half a year later, they have appreciated by 60%, and the upward trend has not stopped at all. According to experts in the United States and Japan, at least until the end of this year, the yen will continue to appreciate. Keep the exchange rate rising.

This made Huo Jianning very famous.

Many people know that the Japanese yen will definitely rise in price, but there are still very few people like Huo Jianning who firmly believe in Yin Jun's judgment.

Most of the investors who convert US dollars into Japanese yen only have a few million dollars, and only a few can make more than 1 billion US dollars.

Yin Jun deliberately did not actively intervene as soon as the Plaza Accord came out, so it has actually risen by more than 80%. However, the Kirin Group's US$10 billion this time did not maximize profits.

But this is enough.

In just over 7 months, 10 billion U.S. dollars has turned into 16 billion U.S. dollars. Do you think it’s scary or not?

At this time, the total interest expense is less than 500 million US dollars!

This operation simply turned Huo Jianning into the big winner of this exchange rate appreciation.

But Huo Jianning did not settle for nothing. Instead, he put the money in the bank and used the 5 billion U.S. dollars in his hand to exchange for Japanese yen, and continued to acquire land and houses in Tokyo, Japan.

Yin Jun gave him a good reference, and he himself collected a lot of information in Japan, so every time he came here, there would be several big acquisitions.

Huo Jianning's acquisitions are not just millions or tens of millions, but land and houses worth more than one billion US dollars at a time.

And he was very courageous. He acquired these lands and houses on an installment payment model.

Companies and wealthy people who own land and houses have never heard of such a large transaction, a one-time payment of hundreds of millions of dollars worth of yen.

Therefore, they also accept this method of paying 20% ​​first and then paying it all off three or five times within a year.

Every acquisition will be guaranteed by one of the Japanese branches of Mitsui Banking Corporation, Sumitomo Bank, and Citibank, so they don't have to worry about the Kirin Group running away.

Anyway, the 20% down payment has been received, and all they have left is to happily wait to receive the money.

The current land and houses in Japan have not skyrocketed, but the trend of appreciation is also obvious.

Huo Jianning is a big business person, and he will definitely not be so picky when making moves. He directly gave a price that was 10% higher than the market value, and the payment time was reduced to one year. This is very refreshing and kind. .

Some people will just say yes.

But some people feel that their assets are valuable and want to increase the price. As long as they are small, Huo Jianning chooses to buy them directly.

But if they wanted to quote a sky-high price in one go, Huo Jianning would bypass them and not buy it.

Tokyo is really big, and the surrounding area is even wider. Not many people are interested in Tokyo's real estate, betting that it will skyrocket.

Therefore, Huo Jianning has plenty of opportunities and time to make this acquisition.

Of course, Huo Jianning has never been reckless.

He specially hired more than thirty real estate experts in Tokyo and asked them to evaluate and view good sites and houses everywhere.

Huo Jianning will not buy just because of one person's suggestion. Only if at least three people recommend the site or building at the same time will he go and take a look at it and decide whether to buy it or not.

Those experts also adopt a benefit system. As long as Huo Jianning buys the house and chassis recommended by them, in addition to their basic salary, they will also receive a reward equivalent to about 100,000 US dollars.

100,000 US dollars is definitely a huge amount of money for wealthy Japanese in this era.

The Japanese are very serious when doing things and rely entirely on their own credibility.

If they collaborated with others to deceive Huo Jianning on such a big matter, they would no longer have to do business in this area because no one would dare to believe them.

Credit coupled with generous remuneration makes them, who are already local snakes, become more serious when looking for high-quality sectors.

Huo Jianning is not afraid of spending more money at all. Compared with the investment income of Qilin Group here, rewards of hundreds of thousands of dollars each time are nothing at all.

From April to the end of July now, the funds in his hand have been almost used up.

It's scary to say that, based on the 20% deposit ratio, Huo Jianning has actually purchased assets worth US$25 billion.

And the money must be paid within one year, otherwise the transaction will be in default and the 20% deposit will not be refunded.

It's funny to say that such an acquisition is only one-fifth of Huo Jianning's acquisition plan at most.

He thought about it for a long time, then came back and asked Yin Jun if he wanted to continue.

"What do you think?" Yin Jun asked him while sitting in the air-conditioned room of the big house at No. 35 Repulse Bay.

"This is a mid-term investment." Huo Jianning said, "If you judge it according to Mr. Jun, it will probably reach its peak around 1990. It will be almost four years before we sell all the real estate. In 4 years, we will not only need to pay 125 billion US dollars in money or loan interest, but also consider the annual taxes. Japan's taxes in this area are not cheap.

There is no need to worry about commercial buildings and office buildings, because there must be companies willing to rent them. The key is that those lands will be relatively free, so the annual tax of about 3% will be about 2 billion U.S. dollars. Calculated over a maximum of 4 years, the cost we need to pay is 8 billion U.S. dollars.

So in total, a total of about 140 billion US dollars should be prepared.

For such a large-scale loan, I am afraid it would take at least ten commercial banks to be able to bear such a large-scale loan. According to the interest cost of 6%, if we choose to repay the loan over 20 years, we will have to pay US$15.4 billion every year. Whether the company can bear such pressure is the main obstacle to my ability to act. "

"So many!" Yin Jun nodded.

Taking the current Kirin Group as an example, there are actually more than 12 billion US dollars in loans from HSBC, Mitsui Banking Corporation, DBS Bank, etc. every year.

This amount of money is not that much.

In 1985, Kirin Group's net profit reached US$13 billion.

This year, due to the continued sales of Kirin computers and Kirin mobile phones, profits are likely to exceed 20 billion US dollars.

What's more, by the end of the year, Australia has continued to produce iron ore, which is also a hard currency.

But whether it is worthwhile to use 70% of the overall profits to pay for real estate acquisitions in Japan, and whether there will be huge risks, all need to be considered.

After all, Kirin Group will have other businesses that require global layout in recent years, and it cannot be all held back by Tokyo's real estate.

Yin Jun also thought very clearly that if there are no new high-profit points apart from the current ones, then it would be enough for Huo Jianning to acquire another US$25 billion in assets at most.

After four years, if this asset has increased two or three times, there will be no problem at all.

Earning 70 to 80 billion US dollars in 4 years is enough.

"Let's do this. Let's discuss it with my sister tomorrow to see how we can weigh it up." After thinking for a while, Yin Jun said, "Our investments in the United States, Hong Kong and the Mainland are related to the group's future 100 years. The development of Japan. Although it is easy to make quick money in Japan, it is not good if it affects the main business. "

"I know." Huo Jianning also smiled, "Maybe my ambition is too big."

He didn't tell Yin Jun that there was actually another way to solve the funding problem in this area.

That's a direct mortgage.

All the land and commercial buildings and office buildings purchased in Tokyo were mortgaged to Japanese banks, large and small, and then loaned out.

As long as the house prices and land prices in Tokyo keep rising, then this snowball will be successful, and after finally selling all those assets, you will still be able to earn that much.

But the risk of this is much higher than paying interest on a loan.

If this line breaks, the damage to the Kirin Group will be huge.

Therefore, after thinking about it, he finally did not bring it up.