Chapter 237: Chapter 237: Cargo Rotation for Land
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The Freewheel and Victory Wheel freighters are priced at only half of their counterparts in the market. Despite being second-hand, they are still highly attractive.
The Four Oceans Bank, while active in Hong Kong, also operates in the UK, India, and Europe. They have their own shipping business, notably through Jardine Matheson, which used to operate several routes in Mainland China. At one point, eight freighters were used for transporting goods to and from mainland China.
Foreign companies, too, have established their own piers in Hong Kong.
Following a visit, the foreign bank presidents and managers held a meeting. Jardine Matheson decided to order four ships—two Freewheels and two Victory Wheels—but requested Victor to negotiate the price.
Victor pondered for a moment before responding to the negotiating manager: "The price of the freighter can be discussed, but we have a condition."
"What condition?" the manager inquired.
"I understand you have land on the South Bay side. The Hardy Group is expanding in Hong Kong and is in need of land. We hope Jardine Matheson can transfer it to us," Victor stated.
The South Bay, which later becomes Repulse Bay and Deep Water Bay, is currently much larger.
The manager hesitated, saying, "Mr. Victor, I am not authorized to make such decisions. I need to seek further instructions."
"That's fine."
Upon returning, the manager reported to the president. After discussions with the board, it was decided that while the South Bay land was part of future plans, the development was projected to be decades away. The area is currently remote, with the journey around the mountains taking over three hours by car. It has only one resort built by Jardine Matheson, along with a few buildings and dozens of villas, mainly used for vacation purposes.
A director asked, "How much land are they looking to acquire?"
"I didn't specify, but they're looking for as much as possible. Given the Hardy Group's appetite, I doubt they'd settle for anything too small," the manager replied.
Another director suggested, "If they want more, we might as well give them the whole land and see how many ships we can get in return."
The president expressed concern, "Mr. Davis, if we hold on to the land for some time, its value is likely to increase. It seems unwise to sell it now."
Director Davis countered, "Are you worried about the domestic situation in China? With Chiang's forces struggling and the potential for the Communist Party to win, our investments in Hong Kong could become precarious if that happens. It's better to trade now while we can."
"If the Communist Party wins, they might reclaim Hong Kong, making our investments worthless. However, freighters can be relocated back to the UK if necessary, unlike land," he added.
Another director agreed, "Davis makes a good point. We need to think long-term. We have enough land on Hong Kong Island for our needs. Investing in the South Bay land now could be advantageous."
Ultimately, most voted in favor, and Jardine Matheson agreed to sell the land. A team was formed to finalize the deal with Victor.
"Mr. Victor, how much land do you need?" the president asked.
"We need as much as you are willing to sell," Victor replied.
The president presented a map. The land marked in red included the South Bay area, totaling 3,561 acres. It featured a resort village, and the highway investment amounted to $3.36 million.
"For the entire South Bay land, the price is $10.7 million."
Victor reviewed the figures, noting the land price of about $2,000 per acre, which was nearly on par with land prices in New York and Los Angeles. "No, that's too expensive."
"I can offer $1,000 per acre."
The president immediately shook his head. Negotiations ensued, with both sides leveraging their advantages. After two days, they agreed on $8.6 million for the South Bay land and associated buildings.
On the Hardy Group's side, they acquired four Victory Vessels and four Freedom Vessels. The cost of a Liberty Vessel was $80,000 each, totaling $320,000 for four. The Victory Vessel cost $1.5 million each, totaling $6 million for four, bringing the total to $9.2 million. With discounts, the final difference was $440,000, which Jardine Matheson provided in cash.
Victor was thrilled by the sale, given his commission of $46,000. Hardy was generous with bonuses, ensuring staff received their due rewards.
Swire Pacific also approached Victor to buy two freighters. When Victor proposed trading land, Swire Pacific offered a piece in Sha Tin, a small wilderness fishing village. The area, larger than South Bay and valued at $560,000, was far cheaper.
The deal involved covering the remaining amount in cash.
Hutchison and Wheelock, both owning docks, opted for leasing freighters. Hutchison leased six boats, and Wheelock four.
Chinese shipping magnates were also interested. Xu Aizhou, a prominent figure in the shipping industry, planned to buy a batch of freighters despite concerns about the ships' technology. He instructed his company to secure a bank loan, including from the newly opened Wells Fargo Bank, owned by the Hardy Group.
Dong Haoyun, a significant player in shipping, saw this as a rare opportunity. Though currently constrained by finances, he approached Victor with a proposal to take a stake in his company, Global Shipping, in exchange for investment.
Victor, intrigued, asked Dong to elaborate. Dong explained his company's assets and proposed that Hardy Group invest with a stake of more than 30%.
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