Chapter 618
A Fortune in the Trillion
It's now 1993.
When Chen Wenming returned to Hong Kong from his inspection trip to the mainland, his eldest son, Chen Zesong, immediately reported to him: "Dad, the Diamond Hill land auction is about to begin. Do you want to attend the auction in person?"
The 'Diamond Hill Site' is located at the exit of the tunnel connecting Kowloon and Sha Tin in the New Territories. This 280,000-square-foot site can be developed into five residential towers with a total area of 1.2 million square feet and a commercial plaza of 650,000 square feet.
When the Global Group cashed out a huge amount of money from Japan, part of it flowed into Singapore (to acquire Singapore Land) and part of it was invested in mainland China, so Hong Kong was naturally a top priority.
On the mainland, several collaborations have been reached in the past year: for example, the Times Square and Marco Polo Hotel on Nanjing West Road, the Shanghai World Financial Center (the tallest building) and Riverside No. 1 (a luxury residential project) in Pudong, and projects in Beijing.
In Hong Kong, the most important task was undoubtedly to convert the five residential towers of Harbour City into five first-class Grade A office buildings. The plan was as follows: Phase I of the redevelopment was completed in 1993, providing the group with 113 million square feet of office space. Phase II of the Harbour City redevelopment then commenced in 1993, demolishing and rebuilding the original three residential buildings into three Grade A office buildings, adding another 2.7 million square feet of office and shopping space for the group, further solidifying Wharf Holdings' position as the "King of Tsim Sha Tsui." Phase II was expected to be completed gradually by 1999.
In addition to the Harbour City redevelopment project, this proactive bidding for large-scale real estate projects in Hong Kong also demonstrates that Wharf Holdings is strengthening its investment in Hong Kong.
“Go and participate! There will be many competitors in this auction. Our Wharf Holdings Group also invested in high-end residential projects in Kowloon such as ‘Festival Walk’ in the 1990s. You will be in charge of developing the Diamond Hill site this time. I hope you will do a good job.”
"Yes, Dad, I will definitely not let you down!"
Although Chen Wenming might have favored his second son, Chen Zeqi, he preferred to entrust important responsibilities to his more mature and stable eldest son, Chen Zesong. Therefore, after graduating from university, this son joined Wharf Holdings and rose through the ranks step by step.
Originally, the second son, Chen Zeqi, was supposed to join Global Shipping, but who knew that the kid had no interest in shipping? Now, Chen Wenming has no choice but to transfer his third son, Chen Zewen, to Global Shipping.
of course.
After some time of deliberation, he decided to give the choice to his four sons, on the condition that the Global Group (Wharf Holdings, Global Shipping, Hong Kong Airlines, Global Trading, and Global Real Estate) still exist.
For example, if the second son wants to start his own business, he will be given a sum of start-up capital, but he cannot take away any of the Global Group's assets.
After his eldest son, Chen Zesong, left the office, Chen Wenming fell into deep thought:
If Wharf Holdings acquires the 'Diamond Hill' site, it is estimated that by the end of the 1990s, its rental properties in Hong Kong will reach over 9.5 million square feet, establishing a position similar to that of Cheung Kong Holdings.
As for Hongkong Land Group, it currently only owns eight buildings in Central, Hong Kong: Alexandra House, Hong Kong Club House, Jardine House (opposite to Bea Street, the old Jardine House), Gloucester House, Prince House, Swire House, Mandarin Oriental Hotel, and 9 Queen's Road Central, totaling 3.1 million square feet of rental properties in Central.
Starting in 1988, Hongkong Land also sold some properties outside Central, including Harcourt House in Wan Chai and Windsor House in Causeway Bay. Subsequently, Hongkong Land sold the Tregunter Mansion in the Mid-Levels to the Australian Benda Group, raising more than HK$2 billion. In 1990, it sold the World Trade Centre in Causeway Bay for HK$17 billion. In 1991, Hongkong Land sold four shopping mall properties to Sun Hung Kai Properties and sold Excelsior Shopping Centre and New Harbour Centre Shopping Centre to Chinese Estates Holdings.
Therefore, Landmark, which no longer has a 'Trade Square', has now shrunk considerably.
Currently, the largest rental income companies in Hong Kong—CK Asset and Wharf Holdings—are both controlled by the Chan family.
Ping An Bank Building.
Chen Guangliang sat in the family office, pondering matters concerning the family office.
Today, the 'Chen Guangliang Family Office' boasts assets worth HK$1200 billion and investments spanning 26 countries worldwide.
In reality, HK$120 billion in assets is not much, after all, it is the wealth jointly owned by his four wives and concubines, 11 sons, 4 daughters, 46 grandchildren (33 grandsons and 13 granddaughters), and great-grandchildren.
Many of his sons have a combined net worth of around HK$800 billion.
In addition, the family office provides each member with a monthly living allowance of HK$50, which amounts to approximately HK$5 million annually for family living expenses. Furthermore, the family office's annual operating costs are slightly over HK$3 million, making the costs relatively high.
Chen Guangliang reviewed the investment projects of the 'family office'.
Hong Kong side:
As of now, the total market capitalization of the Hong Kong stock market is just over HK$1.8 trillion. The Chan Kwong-leung family office holds dozens of real estate, utilities, and banking stocks, valued at approximately HK$150 billion. In addition, the Chan Kwong-leung family office also owns some expensive properties, including several office buildings, luxury residential buildings in the Mid-Levels, and shops, with a total value of around HK$150 billion.
This means that approximately 25% of family office investments are in Hong Kong.
From the US perspective:
To date, the Chen Guangliang family office's main securities investments are valued at over HK$200 billion, including traditional companies such as Coca-Cola, McDonald's, Amgen, and Procter & Gamble. In the 90s, they also heavily invested in a large number of troubled American banks, such as Citibank and Wells Fargo. Their property investments are primarily office buildings and villas in Manhattan, Los Angeles, and San Francisco, also valued at over HK$200 billion. The total value of their investments is estimated at HK$500 billion.
This means that 42% of the family office's investments are in the United States. Besides these two regions, the Chen Guangliang family office also holds investments worth 400 billion in Europe, Canada, Australia, Japan, Singapore, and Southeast Asia.
not enough!
Chen Guangliang quickly closed the document, thinking to himself.
Of course, there will be many opportunities ahead, including investing in the mainland and the US internet sector, all of which present opportunities to make quick money.
The goal is to reach a family office wealth of over HK$3000 billion by 2000. After all, doubling the capital is very difficult, let alone multiplying it several times.
After reaping the profits from this wave of internet gains, Chen Guangliang's family office plans to expand its investment scope and diversify its investments after the turn of the millennium. At that time, an annual return of over 10% would be satisfactory.
After considering the future of the family office, Chen Guangliang turned his attention to his 15 children.
The eldest son, Chan Man-kit, owns the Cheung Kong Group, essentially an expanded version of Li Ka-shing's previous business empire. For example, their real estate investments are vast, with significant holdings in Singapore, Japan, the US, and Europe. Even in Hong Kong, they own several prime properties in Central, including Exchange Square. They also own the Shangri-La Hotels and Resorts, a large hotel group with operations in Hong Kong, mainland China, Singapore, Japan, Kuala Lumpur, Manila, Bangkok, and Canada. Furthermore, Chan Man-kit's lineage has enjoyed substantial dividends since the 1980s, which have been reinvested globally, resulting in assets worth HK$50-60 billion. In total, Chan Man-kit's lineage currently possesses a wealth of HK$120 billion (Cheung Kong Group's current market capitalization is HK$120 billion, representing 6.5% of the Hong Kong stock market. Hutchison Whampoa and HK Electric are subsidiaries, so their market capitalization is not considered part of the Chan family's direct wealth. In reality, the entire Cheung Kong Group's market capitalization is approximately HK$240 billion, accounting for about 13% of Hong Kong's total market capitalization), which is likely to be more than 1.5 times the wealth of Li Ka-shing in his previous life. In addition, he donated 25% of his Cheung Kong Holdings shares, which is why Chen Wenjie's current wealth is only around 120 billion.
The second son, Chen Wenjin, owns the Amazon Group, which comprises three main assets: Amazon Shopping Centers, Sheraton Hotels & Resorts, and Amazon Realty. Amazon Shopping Centers, a representative of American shopping malls since the 60s, has naturally flourished, boasting 56 superbrand shopping centers across the US. Sheraton Hotels & Resorts includes several hotel groups: Sheraton, Ritz-Carlton, and Holiday Inn, and is already one of the top three hotel groups globally. Amazon Realty owns over twenty office buildings in Manhattan and hundreds of properties across the US. Chen Wenjin's lineage currently has a net worth of approximately US$150 billion, or HK$1200 billion. However, in the US, he doesn't rank highly on rich lists because only Starwood Hotels & Resorts is publicly listed.
The third son, Chen Wenming, owns the Global Group, which includes: Wharf Holdings, Global Shipping, Hong Kong Airlines, Global Property, and Global Trading. Except for Hong Kong Airlines, which is a listed company, the rest are privately held. Wharf Holdings is expected to own 10 million square feet of rental property in Hong Kong, larger than Cheung Kong Holdings' holdings. In addition, Wharf Holdings holds a 51% stake in Singapore's largest commercial real estate company, Singapore Land, and is also making significant inroads into the mainland Chinese real estate market. Furthermore, Chen Wenming and his children also have a "father-son trust" with assets estimated at HK$30-40 billion. The current net worth of Chen Wenming's lineage is estimated at HK$100 billion, but they are not ranked highly on the rich list (hideout).
The fourth son, Chan Man-kai, owns the "Cheung Kong Group," a very famous but unlisted conglomerate. In 1992 alone, Cheung Kong Industrial Group's profits exceeded HK$135 billion, making it a true money-making machine. As for the exact wealth of the Chan Man-kai lineage, it's impossible to calculate precisely, as the value of many patents and copyrights is uncertain. However, Chan Man-kai also has a "father-son trust" with assets valued at HK$60-70 billion, representing his profits and dividends over the years, which he has then invested globally. Overall, Chan Man-kai's total assets are easily estimated at HK$120 billion.
The eldest daughter, Chen Leyi, and her husband hold a 35% stake in Amgen Biopharmaceuticals, a US pharmaceutical giant (one of the world's top ten pharmaceutical giants), with a net worth of approximately US$50 billion.
Chen Wenhua, the fifth son of Warren Buffett, holds a 43% stake in United Madison, a publicly traded investment company in the United States. He is a renowned Chinese investor on Wall Street, on par with Warren Buffett. However, Chen Wenhua has concealed some of his assets. The magazine estimated his wealth at $4 billion, less than half of Buffett's over $8 billion. In reality, Chen Wenhua also has $4 billion in personal investments, bringing his total net worth to $8 billion.
The sixth son, Chen Wensheng, owns the Ping An Financial Group. Ping An Bank has a market capitalization of approximately HK$350 billion, with Ping An Financial Group holding 50% of the shares (the remaining 25% is donated to a foundation). Therefore, Chen Wensheng's net worth, as reported in newspapers, is HK$7000 billion, still ranking third in Hong Kong (first Chen Wenjie HK$700 billion, second the Kwok brothers HK$500 billion, fourth Li Ka-shing HK$320 billion, and fifth Guo Huonian HK$300 billion). In reality, Ping An Investment holds assets worth approximately HK$600 billion in the stock markets and real estate sectors in Hong Kong, the United States, and Europe, and Chen Wensheng's net worth is also around HK$1000 billion.
Chen Wen-ou, the seventh son, holds a 36% stake in Mattel Group (a US$200 billion) and also owns Red Bull in Europe. His net worth is approximately US$60 billion.
Chen Wenhai, the eighth son of Atari, became a high-tech venture capitalist after selling Atari for $10 billion. He is also an investor in Apple's Series A round, Microsoft, Oracle, and others. He has recently acquired the American game studio Maxis, the studio behind The Sims, and has re-entered the game industry. His net worth is estimated at $60 billion.
The second daughter, Chen Mengyi, holds a 49% stake in a media group (the remaining 51% is mostly held by the family office and partly by Ping An Investment). Her holdings include: Asia Television, Asia Satellite Television (50%), Times Pictures, Times Entertainment, and Oriental Daily News. Since only Times Pictures is a listed company with a market capitalization of over HK$100 billion, her book net worth is HK$60 billion, but her actual net worth is around HK$150 billion.
Chen Wenying, the ninth son, holds a 55% stake in EA, a Japanese listed company (he cashed out 20% at its peak), and also owns a 50% stake in Chiba Bank (the remaining 50% is held by his younger brother). Although the Japanese stock market and real estate market have plummeted, Chen Wenying did cash out over four billion US dollars at its peak, so his net worth is certainly close to ten billion US dollars, and he has a large amount of cash flow.
Chen Wenxi, the tenth son, is a British real estate developer whose Canary Wharf Group is worth three to four billion US dollars, and also owns Harrods Group (Harrods, Château Latour, Gucci), with total assets of 50 billion US dollars.
Chen Wensheng, the eleventh son, cashed out from the Japanese real estate market in 1989-1990, retaining only 20% of the properties or equity. He currently holds more than US$60 billion in cash flow and has other properties worth about US$15 billion, which is equivalent to a net worth of US$80 billion.
The third daughter, Chen Daiyi, joined the British Duke's family and holds only 15% of Harrods Group's shares, with personal assets of only two to three hundred million US dollars.
The fourth daughter, Chen Yingyi, has amassed a fortune of US$8 million since 1989 by shorting the Nikkei index. She married a descendant of a deceased friend of Chen Guangliang, but he went to Japan to develop his career.
These fifteen children alone have a net worth exceeding US$120 billion, equivalent to nearly HK$1 trillion. As for their mother's wealth, it has been gradually handed over to them, along with investment opportunities, leaving her with only a small amount of "pocket money."
The Chen family is so wealthy that if they hadn't hidden and dispersed their wealth, they would probably have become highly sought-after by others long ago. Now that the third generation has grown up, they can naturally disperse their wealth even further.
The only thing that can truly not be "dissolved" is, of course, a family office, which is inseparable from the family business.
Therefore, in the future, while he can still live for another 20 or 30 years, Chen Guangliang will mainly invest through family offices (small family offices also count) to reduce direct interference in his children's careers.
And what about those young women? He's already eighty-three; if he doesn't appease them a little, they might remarry with their sons, which would be a loss for him. (End of Chapter)