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The two of them went straight upstairs, contacted the secretary, and then stood quietly to the side waiting.
Time passed by, and after a few minutes, it was finally 2:30 p.m. when they were invited into the spacious and bright office on time.
Upon entering, the woman named Du Weifang spoke first:
"Hello Mr. Li, I am Du Weifang from Yuzhu Company, and this is our big boss, Comrade He Yuzhu."
It turns out that, in order to avoid many potential troubles in the future, He Yuzhu made some changes to his name when applying for his ID card, changing the original "Yu" to "Yu". He then registered a company called Yuzhu under this name and planned to use the company to enter the machinery manufacturing field.
Upon hearing the introduction, Li Jiacheng, who was sitting behind his desk, smiled and stood up, politely responding:
"Hello, Mr. He, it's a pleasure to meet you."
Then, He Yuzhu said with a big smile, "Hello Mr. Li, I've heard so much about you. You are the renowned Plastics King! We've long been familiar with your achievements!"
Li Ka-shing waved his hand modestly and said:
"You're too kind. Please, both of you, have a seat." He personally invited them to sit down and gestured for his secretary to bring them steaming hot tea. Once everything was arranged, the two sides began an in-depth discussion about the details of renting the apartment.
It's important to know that if it's just a small rental property, the business manager usually only needs to sign the contract directly, and there's no need for Li Ka-shing to personally handle the meeting.
However, this meeting was different, which shows that this cooperation is of great significance to both parties.
However, before this, Du Weifang had been longing to acquire the magnificent Yangtze River Industrial Building, but her purchase request was ruthlessly rejected.
Nevertheless, this persistent woman did not give up easily and then put forward a new proposal - she hoped to rent out the entire three-story area that she had already successfully taken control of.
Upon hearing this news, Li Ka-shing decided to personally receive Du Weifang and her delegation.
At the start of the meeting, Li Ka-shing enthusiastically gave everyone a detailed introduction to the Cheung Kong Industrial Building.
He proudly stated that most of the building's space had already been reserved and rented out by discerning tenants.
At that very moment, some floors became vacant because the leases expired and the tenants chose to move out.
Lee Ka-shing then further revealed that the Cheung Kong Industrial Building was started in 1958 and, after more than a year of intensive construction, was finally completed and put into commercial operation in early 1960.
Furthermore, Li Ka-shing has always adhered to an unwavering principle: the building will only be rented out and will never be sold. He only cares about collecting stable and substantial rental fees from the tenants.
Finally, Li Ka-shing seemed to see through Du Weifang's possible concerns and added with a smile:
"If these three floors do not fully meet your actual needs, please do not worry. I have another industrial building of the same size in the Shau Kei Wan area for you to choose from."
Upon hearing this, He Yuzhu nodded slightly, indicating his approval and agreement.
He responded, "At this stage, these three floors are more than enough for our first phase of development. So, renting these three floors for now shouldn't be a problem."
In fact, He Yuzhu originally planned to purchase an entire building as the company's office space and business expansion base.
After all, with his current ample cash flow, completing such a real estate transaction is not difficult.
However, after conducting in-depth research and understanding, he found that the current real estate market is still in its infancy, and the developers active in it often have relatively limited strength.
Moreover, they generally adopt a marketing strategy called "selling off-plan apartments".
While this strategy reduces the initial financial burden on homebuyers to some extent, it also comes with many potential risks and uncertainties.
After taking all factors into consideration, He Yuzhu finally decided to postpone his home purchase plan and first solve his immediate space needs through leasing.
This practice dates back a long time; it was originally invented by the renowned Mr. Fok Ying-tung!
Back then, when a house was just about to break ground, and there wasn't even a clear sign of construction, it would already be available for sale.
In this way, he can use the real money he gets from the buyers to build the building, thus greatly reducing the costs he needs to bear.
In fact, only about 10% of the total construction cost is needed to operate the entire project.
Specifically, first, you have to pay a sum of money to acquire the land, and then use that land to apply for a loan from a bank. Usually, you can get a loan equivalent to 70% of the land's value.
Then, the process of selling off-plan properties can officially begin, and amazingly, almost every time all the units are successfully sold out!
In this way, a skyscraper can be built smoothly without spending almost a penny of one's own cash.
It's important to know that while selling apartments off-plan is a common practice in Hong Kong, the occurrence of unfinished projects is extremely rare.
Even if you unfortunately encounter one or two unfinished buildings, the local comprehensive laws and regulations will fully protect the rights and interests of buyers.
It's truly a pity that the mainland failed to grasp and utilize this effective model and strategy.
Let's take a look at this whole building. It's brand new!
Having only invested a short year, its overall construction quality is undoubtedly beyond doubt and without any problems.
Next, let's move down to the fifth, sixth, and seventh floors and take a look. Each floor has a floor area of 4000 square feet!
In the bustling Hong Kong area, the unit used to measure the area of houses is not the familiar square meter, but a unique square foot.
There is a fixed conversion ratio: 1 square meter is equivalent to 9 square feet. Therefore, when the area of a certain floor is close to 400 square meters, it is approximately 3600 square feet according to the local calculation.
He Yuzhu examined the space before him with focused and meticulous attention, silently assessing and calculating in his mind. After observing for a while, he nodded slightly, indicating his approval and agreement to rent the place.
It's important to understand that finding a brand-new industrial building is no easy task in today's market environment.
Many industrial buildings have already been rented out by other companies, especially in the North Point area.
Although some rental units are still available, they are generally small. Many factories occupy only a corner of the floor and are only slightly larger than small family workshops.
A factory with a floor area of over 100 square meters is considered to be of considerable size.
Take Wan Chai as an example. There are almost only four-story buildings everywhere, and buildings with more than one story are extremely rare.
On the other side of the peninsula, although there are a considerable number of industrial buildings, He Yuzhu is dissatisfied with their location, feeling that they are too far away, so he has not even considered them.
At this moment, the person in charge of leasing spoke up:
"The current rental rate here is 7.5 cents per square foot. Given that the area you are renting is relatively large, I can calculate the rent for you specifically at 7 cents per square foot per year."
It should be noted that the "毫" mentioned here actually has the same meaning as the "角" in mainland China, which is commonly referred to as "一毛".
Chapter 442 Is Mr. He from the capital?
He Yuzhu smiled and nodded, expressing his gratitude for the other party's help. The two then returned together to the spacious and bright office on the top floor.
Upon entering the office, they sat on comfortable sofas with a thick stack of documents and contracts in front of them.
The staff handed the relevant documents to He Yuzhu and explained each clause and rule in detail.
He Yuzhu listened carefully, occasionally asking questions to ensure he fully understood and accepted the conditions.
Finally, after some discussion and confirmation, He Yuzhu picked up his pen and signed his name with a flourish.
This contract contains important information such as the floor area to be leased, the rent, and the lease term. Each floor is a full 4000 square feet, and the annual rent is as high as HK$2.8.
Without hesitation, He Yuzhu rented the entire three floors, resulting in an astonishing annual rent of HK$8.4.
However, for someone as wealthy as him, this amount of money was just a drop in the ocean.
As long as those advanced lathe equipment can be put into use smoothly and large-scale production can be carried out, a steady stream of high-quality machine parts will come off the production line.
With its exquisite craftsmanship and efficient production capacity, He Yuzhu firmly believes that his company will achieve great success.
After the signing was completed, the two parties took a short break and began to chat.
Li Ka-shing asked curiously, "Mr. Ho, what specific business are you planning to engage in this foray into the business world?"
He Yuzhu answered confidently, "My plan is to focus on hardware products, while also covering various mechanical equipment and popular electric fans, etc."
Upon hearing this, Li Ka-shing couldn't help but give a thumbs up and praised, "This is quite a good business! With Mr. Ho's strength and vision, I believe he will definitely be able to make a name for himself in the market and create brilliant results. Here, I sincerely wish Mr. Ho's business will flourish and his ambitions will be realized!"
He Yuzhu smiled modestly and said:
"Thank you for your kind words! Actually, I have another idea I'd like to ask you. I'm wondering how to build my own industrial building?"
This question surprised Li Ka-shing, who asked in return with slight astonishment:
"Does Mr. Li intend to personally build an industrial building?"
He Yuzhu nodded frankly and replied, "That's right. I currently have a certain amount of idle funds, and I need to find suitable investment channels to put them to use. Originally, I planned to directly purchase the entire building, but unfortunately, I haven't been able to find a seller willing to sell. I had no choice but to rent the factory as a temporary measure."
"Oh? Then what exactly is your intention?"
He Yuzhu watched Li Jiacheng, who was speaking eloquently, with great interest, secretly trying to figure out the other party's true intentions.
Li Jiacheng smiled slightly and said confidently:
"To be honest, I have a complete and experienced professional team. If you are interested, you can entrust the project to our company for construction."
As he spoke, Li Jiacheng's eyes gleamed with shrewdness and wisdom, clearly indicating that he had full confidence in his own abilities.
After all, how could he have become the richest Chinese person if he didn't possess such outstanding business acumen and insight?
After a thorough discussion, Li Jiacheng had already discerned He Yuzhu's situation—this man was new to Hong Kong and, although he possessed enormous wealth, he was somewhat constrained due to his unfamiliarity with the place and lack of connections.
My company has been deeply involved in this field for many years and has a wealth of experience, so there is undoubtedly a lot of room for cooperation between the two parties.
At this moment, He Yuzhu frowned slightly and raised a crucial question:
"If we are to cooperate, should we provide the land for development and construction, or should you be responsible for arranging it?"
Faced with this core issue, Li Ka-shing responded calmly:
"Actually, both methods are feasible. Take the North Point area for example, where most of the buildings are low-rise. So, whether it's acquiring existing properties or purchasing new land for development, it will be much easier to do."
Upon hearing this, He Yuzhu nodded in agreement.
He knew in his heart that North Point was indeed slightly inferior to the bustling Wan Chai area.