On the eve of the British Prime Minister Teresa May’s release of Britain’s “Brexit” speech, Li Ka-shing turned to invest a big deal in Australia.

16th January 2017, Li Ka-shing’s Cheung Kong real estate company, the Yangtze River Infrastructure, Power Industry and the announcement of a long and formed consortium acquired DUETGROUP notice. Among them, Cheung Kong real estate, the Yangtze River Infrastructure and Power Industry contributed 40%, 40% and 20% respectively. Nagaoto did not participate in the acquisition, but due to the fact that Li Ka-shing’s father and son are long and major shareholders, according to the rules of Hong Kong listed companies, Changhe also announced the acquisition.

Behind the switch to Australian assets is Li Ka-shing’s investment in the United Kingdom lost. Although Changhe said that its investment in the UK is a necessity, the foundation is not affected. However, before his departure from the EU, he made £ 1 million a year, subject to exchange rates, which is now equivalent to a 18% contraction.
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Bloomberg believes that Li Ka-shing’s eyes on Australia also want to flee Europe – especially the United Kingdom.
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“If Britain really delves in Europe, which will have a negative impact on Britain and Europe, I hope Britain will not leave the European Union.” Before the Brexit referendum, the “rich who bought half of the UK” once said.
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Just three months after the referendum in the EU, CKH Holdings Co., Ltd. released its annual performance on the occasion. Li Ka-shing told the media that he would withdraw funds from the United Kingdom if the United Kingdom really took off from the EU.
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Today, the United Kingdom is a foregone conclusion of its exit from Europe. It is also on the verge of “taking the hard grip on Europe.” Li Ka-shing never mentioned the remark once again. Only a spokesman for Hutchison Industries Limited laughed and said: “We are confident of our business in the UK. We will thrive and continue to provide the UK with a Just need goods and services. ”
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“Where there is a return, where I go Invest.” In early 2017, 88-year-old Li Ka-shing said at the Yangtze River Group’s annual dinner.

Land prices are too expensive hundreds of billions of funds rush to find a way out
Throughout the acquisition plan, Cheung Kong real estate living in the heart of the consortium. The high land prices and cash on hand are the direct motivators for Cheung Kong to take part in the huge acquisition.

“At the current stage of the local property market cyclical stage, the high land prices pose a risk, it is not easy to find real estate investment projects with reasonable returns,” Cheung Kong real estate in the announcement.

According to a rough estimate, in the past four years, Li Ka-shing has sold hundreds of billions of assets in Hong Kong and the Mainland altogether. The remaining assets are also dominated by “cash cows” such as utilities and telecommunications. Therefore, even with the massive acquisition of the UK in the past two years, the cash on hand is still abundant . Huge funds urgently need to find a way out and replace them with safer assets, which is perhaps the core reason for Li Ka-shing’s frequent overseas mergers and acquisitions.

The vast Australian territory
Li Ka-shing is not the first time set foot in Australia.

As early as 1999, Hong Kong’s business giant Li Ka-shing started to flex its muscles in the Australian real estate market.

At present, Li Ka Shing is actively allocating capital through the assets of Singapore-listed real estate companies ARA Asset Management and Summit Development Fund to distribute the real estate market in Australia and the real estate market in Southeast Asia. Li Ka Shing substantial investment in Australia, gave the Australian real estate investors a lot of confidence.

At present, the Yangtze River Group has 5,800 hectares of vineyards in Australia, including Qualco West, Qualco East, Miamba, Bussorah and Schuberts Vineyard in South Australia.

In 2010, Li Ka-shing spent 45.8 million yuan to buy Wine Trust (ChallengerWineTrust), this move made him the owner of the second largest vineyard in Australia. In addition, Lee purchased the local Cheetham Salt in DryCreek, north Adelaide, wearing the crown of the nation’s largest salt producer.

Li Ka-shing in South Australia to break the pace of territorial expansion can be said non-stop. He joined bidding for Envestra, the gas distributor, and over rival APA for $ 2.37 billion at $ 1.32 a share. Envestra owns 23,000 kilometers of natural gas pipelines in Australia and if the acquisition is approved by the Overseas Investment Review Board, Mr Li will add an important energy asset to the Australian territory.

In addition to its investment in South Australia, Cheung Kong has assets of over 50% of Vodafone, Accensi, Australia’s largest manufacturer of plant protection products, and Aqua Tower, the Australian water company. Li has also set up its own Yangtze River Life Science and Technology Group (Amgrow), managing local agricultural operations.

Cheung Kong, which is run by Li Ka Shing, has agreed to buy Envestra Ltd. (ENV), an Australian natural gas distribution company, in cash for a deal valued at $ 2.2 billion in ENV, a notice released by ENV shows. Cheung Kong Proposed to be 1.32 Australian dollars per share for cash acquisition, in addition to dividend per share up to 3.5 Australian cents. Cheung Kong currently owns ENV17.46% of the shares.
Australian housing market so the situation again!

Dong Fan, a professor at Beijing Normal University, once analyzed that Australia is his most favored overseas real estate investment market. After eight months of analysis and comparison, Dong Fan’s conclusion on the investment prospects of nine overseas countries concluded: “The real estate market in Canada is also OK; the prospects for the United States, Hong Kong and Singapore are general; the investment in Japan, South Korea and Europe is not advocated; and Australia Impeccable. ”
1. Asset classes that bring stable and incremental rent / bonus / dividend income.

2. Expected, historic multi-cycle assets with stable capital appreciation rate.

3. 100% fair and free trading platform and exit mechanism of the asset class.

4. Assets that still have cash flow / rental / dividend / dividend income in the capital market decline cycle.

5. Assets with smaller or less volatile declines in capital markets.

6. Asset classes that can still cash out / redeem / liquidate / trade in the capital market decline cycle.

7. Can have access to banks, financial institutions, mortgage and financing assets.

8. Can be inherited, can not be copied, with scarce attributes of resource assets.

9. Can withstand the ups and downs of the market cycle, currency devaluation, natural disasters and the threat of war assets.

10. Funding hedging mechanism, offshore haven, asset type of hedging mechanism.
In contrast with the above ten points, it is clear that even though the restrictions on the purchase and restriction of loans and restrictions on the real estate market in China do not meet the criteria of “hard currency” assets in many aspects of real estate in China. Let’s focus on the advantages of Australian real estate:
A stable economic environment

Relative to the control of the property market in China complicated and confusing, Australia has the most stable real estate investment environment. From a large environmental point of view, first of all, Australia has the most superior natural conditions and benefits. Fresh air, a sound social system and a stable political system have kept Australia far from strife and have been voted one of the most suitable places for human habitation in the world over the years.

Second, Australia has good economic resilience. Even in the global economic crisis, there have been no economic recessions in Australia. It is one of the few countries in the world that has always maintained a stable price and no inflationary pressure. Australia has implemented rapid economic growth and major adjustments in its economic structure. Under the precondition that investment does not harm Australia’s national interests, the Australian government has for many years encouraged foreigners to invest in Australia. The large state enterprises of various countries have continuously injected and maintained strong economic productivity. For investors, a country has a stable economic environment is very important, it determines the level of market risk. Australia’s property market has been maintaining steady growth over the years.

According to RESIDEX, Australia’s property prices have averaged one growth cycle every seven to ten years in the past 30 years, which means that real estate prices double every 7-10 years. And an average of 4-7% per annum of rental returns easily to rent and recuperate, housing prices and rents continued growth in revenue.

2 Education and immigration drive population growth

Australia has a strong educational resources and scientific research. Excellent teachers make a large part of Chinese families choose to study in Australia, so there are many overseas students. This laid the part of the rental market demand. In addition, as an immigrant country, Australia has a large number of immigrants. Compared with Anglo-American countries, Australia has a relatively low threshold of immigration and a more comfortable life. As a result, Australia has attracted a large number of overseas elites to settle here. According to statistics, new immigrants in Australia each year an average of about 150,000 people, much higher than the supply of housing. Can be said that education and immigration laid the housing market demand, so that investment in Australia one more protection.

3 Related Information High transparency

Australian real estate industry ranked the world’s first high degree of transparency of information, construction costs and housing prices basically completely transparent control, the profit margin has a clear statutory scope. Through the corresponding agency website can also find detailed information on developers and real estate, including the surrounding residents of education, stratification, occupational structure, etc., can be used as a basis for rational analysis. In addition, housing prices in Australia are formulated by multiple parties and will be publicly quantified by banks and other professional rating agencies. Government departments have long-term statistical analysis of housing prices in the region. The entire housing prices and profits are almost completely transparent.

4 norms of housing operation market

Australian government strictly regulate the real estate industry personnel qualification examination and approval, including lawyers, agents, brokers and so on. Professionals engaged in real estate activities must have a certain degree of academic qualifications, the corresponding practical experience, and issued a certificate of qualification examination, after registration can practice, the industry is very standardized. Whether it is to buy a house for sale, or rental management, Australia has the most comprehensive system to protect property owners. For overseas buyers, the clear and transparent operation of the market to ensure the safety of investment, buyers do not have to worry about their own, can do without leaving home overseas investment, peace of mind and peace of mind.

5 Strict control of construction volume, low vacancy rate

In recent decades, Australia’s housing prices are also rising year by year with the number of immigrants is closely related to the large population growth each year greatly stimulating domestic demand, but the Australian government strictly controls the amount of housing approvals, housing construction is far behind the population growth, which led directly to Hard to rent a room situation. In accordance with international practice, the vacancy rate of houses is reasonable between 5% and 10%. At this time, the balance between supply and demand is conducive to the healthy development of the national economy; while the vacancy rate is between 10% and 20%, it is necessary to take a A certain measure if the vacancy rate is above 20% is a serious backlog. Australia’s annual vacancy rate remains below 3%, far below the world average. According to government statistics, the population of Australia increases by an average of 3,800 a week with an annual migration quota of around 200,000. It is estimated that by 2031, the demand for housing in Australia will be 663,000 more than the supply.

6 Potential value-added

In Australia, housing prices have been fairly stable with an average of doubling every seven to 10 years due to various factors such as government regulation and economic stability.
In addition, there are many in Australia, home ownership and peace of mind details of the property. The acquisition of real estate is a major event, from the above environmental, market and legal analysis, the Australian real estate market is already a risk is less, very stable and secure investment. However, Australia is even more worrying about the details of the property deal:
1 fine decoration

All the villas in Australia are finely decorated, built to be able to stay. In addition to the basic hardcover, the Australian villa is equipped with almost all the necessities such as microwaves, dishwashers, dryers, gas, air conditioners, ovens, carpets, curtains and more. Only need to purchase soft furniture such as beds, sofas, refrigerators, etc. to stay. In addition, the Australian construction industry quality, design is also very strong. The quality of the big local developers in Australia are very good, the appearance of small depreciation, can maintain a decade as new.

2 post-maintenance in place

Australia’s living area is very clean and tidy, has more than 10 years of community looks and new similar. On the one hand, tenants cherish, more importantly, property management in place. If you are investing in consideration, the rental management company will give priority to tenant quality, the general choice of high-income white-collar workers with stable income.
It is easy to see from the above analysis that the biggest reason for attracting people to buy a house overseas is due to a better investment prospect. Compared with the domestic real estate, investment in Australian real estate can get good credit support, the future has a higher yield, permanent estate without estate tax and property tax is more conducive to the heritage of wealth. In addition, the soundness of the system and the protection of the law make investment in Australia even more secure. Comparing China’s sluggish real estate market economy and the central government to curb property prices, Australia is definitely a suitable investment country!

The “Superman” said at the aforementioned annual group meeting that “the coming Year of the Chicken may face greater political and economic challenges, but the rooster is a symbol of self-esteem, ambition and perseverance, and we should look even further long”. It also said Melbourne, Australia, the real estate prospects, or the entire investment plan focused on Melbourne.
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Li Ka-shing will not stop.