Hong Kong's new giants

Chapter 491 [Chateau Latour]

The next day.

Witnessed by the media, Richman led a group of investors to redeem the unfinished 'Canary Wharf' project from major creditor banks at a price of 15 billion pounds.

Of course, what caught the media's attention the most was that Hong Kong-funded 'New Era Group' invested 60% of the equity in the entire project.

For a while, European and American journalists were in an uproar, and Chinese journalists were encouraged.

As the new richest man in the world, he was also chased by reporters for interviews.

"The Times": "Mr. Lin, this is the second time you bought a commercial real estate in London after you bought eight office buildings in Manhattan, New York. With the economic sluggishness in Europe and the United States, what made you make such a decision?"

Lin Zuhui: "I have an investment philosophy, that is - I am greedy when the market panics, and I panic when the market is greedy. Therefore, when the European and American economies have been declining for several years, I personally think that there will be a turnaround soon. The economy will bottom out. Of course, the Canary Wharf project is worth investing in at any time, and I have reason to believe that it will be another commercial CBD in London.”

The New York Post, which always prefers to dig holes, also asked questions.

"Mr. Lin invests heavily in European and American industries, is there any worry?"

"At present, investment in Europe and the United States only accounts for about 15% of our company, which is a reasonable arrangement."

He quickly declined to continue the interview and asked the reporter to interview Richman, the 'Canadian brat'.No matter where Lin Zuhui goes, he is the most popular with reporters. The most important factor is that he is too young, which makes people feel very legendary.And now, as a Chinese, he started from a very small city and became the richest man in the world. Naturally, he can be called a "legend among legends".

For this investment in the 'Canary Wharf' project, New Era Group needs to contribute 9 million pounds, approximately HK$105 billion.

With so much money, it is naturally impossible not to lend. HSBC and Citigroup have agreed to provide a total of 30 billion Hong Kong dollars in loans.

And Lin Zuhui planned to borrow 55 billion, so Liang Zhenxun asked Liang Zhenxun to go back to Hong Kong to talk to various banks for the remaining 25 billion. I believe it will not be a big problem.

What's more, New Era Group actually has a cash flow of nearly 40 billion Hong Kong dollars in its accounts, and it has just paid nearly [-] billion for the 'Diamond Mountain King' fee.

As a result, the debt of New Times Group has reached 210 billion Hong Kong dollars, which is not counted as bonds (convertible bonds will basically be converted into stocks in the end, so debts are not counted and no interest will be incurred).

The annual interest is only about 20 billion Hong Kong dollars, which is quite heartbreaking.

However, New Era Group's profit has soared this year. If the rental income of Fuli Real Estate is included, Lin Zuhui once again gave 150 billion Hong Kong dollars as an "overestimate".

As for the Canary Wharf project, it is impossible to get back a penny before the 21st century.

At present, eight office buildings (60 square meters) have been completed, and the occupancy rate is only 40%, and the price is relatively low.Even if there is any profit, it will be used to restart the project and support the government's infrastructure.

According to Lin Zuhui's idea, when the rent collection rate reaches 1999% in 99, it will be listed, and the funds raised will be used to repay debts and continue to invest.

Then, dividends can be distributed every year.Dividends are second, and Lin Zuhui can take advantage of the opportunity of listing, and then strengthen his control of this group (increase his shareholding).

The next step is to continue to develop Canary Wharf and surrounding projects.

Lin Zuhui's every move in London quickly spread to the world through the media here. He has just been promoted to the richest man in the world and is now also known as the largest investor in Canary Wharf. He immediately caused great repercussions around the world .

Many media have used exaggerated techniques like 'the world's richest man bought New York and London' to attract people's attention.

And the Hong Kong mainland is even more shocking to the public opinion, no less than dropping a depth bomb on the calm water surface, causing huge waves.

Of course, there are still rave reviews, and it is more of Chinese pride.

London, Division of the LEIT Group.

In the conference room, Lin Zuhui was having a meeting with some senior executives of the LEIT Group, including Chen Shiwen, CEO of LEIT Group, Ian, Vice President of LEIT Group, and Joseph, CEO of Harvey Knicks Department Store, and others.

The LEIT Group is now internationalized and has a large number of foreign designers and some foreign executives, because this is conducive to the internationalization of the company.

Of course, 90% of LEIT Group's business is in Asia, which is the result of Lin Zuhui's insistence on developing in Asia.Maybe after the millennium, Lin Zuhui will let the fast-selling brand 'Jeanswest' open a flagship store on Fifth Avenue, not to make money, but to increase his social status and receive and release trends in the first place.

Lin Zuhui asked, "How is the situation of Harvey Department Store?"

Joseph reported earnestly: "The operation is very satisfactory, and the current turnover has already ranked second among the three major boutique department stores in the UK, and the annual profit can reach 800 million pounds."

It was purchased for 5200 million pounds, and it looks like it will pay back in 7 years, which is still very good.If bank interest is considered, it may take longer to pay back.

However, we must also consider that the European and American economies are booming, which will drive consumption levels to increase, and profits will also increase.

To achieve such impressive results, it is natural that this department store has changed its business strategy, otherwise it will be at a loss.

Lin Zuhui nodded and said: "The situation is very good, continue to optimize business, improve service, and strive to achieve better results."

"Okay, BOSS!"

It is not Lin Zuhui's style to expect normal profits to recover his investment.

Wait another three or four years, take advantage of the booming economies in Europe and the United States, list it, and then cash out the part is the right way.

In the 21st century, department stores will be fully replaced by shopping malls, which is inevitable.

Then, Lin Zuhui asked: "How is the acquisition of Chateau Latour going?"

Yes, Lin Zuhui is acquiring 93% of the shares of Chateau Latour from the British company 'United Leon Group'.

Château Latour is one of the five first-growth wineries in France.The listed wineries selected by France in 1855 are divided into five levels. Even the fifth-level wineries are also national treasures of France. They are regarded as French culture and are rarely sold to foreigners.

There are only 65 wineries that can be selected as classified wineries, and there are 7000 red wine estates in the entire Bordeaux region of France, which shows the rarity of listed wineries.

So how did Château Latour come into the hands of the British?

In 1962, the British Pearson Group acquired a 53% stake in Latour and became the largest shareholder of the family winery.In addition, the British Harvey Group also acquired a 25% stake.At that time, it caused a huge sensation in France, and even the media and the public described the seller as a 'traitor'.

Shortly thereafter, the Harvey Group was acquired by the Unilion Group. In 1989, the United Leon Group made persistent efforts to acquire the Latour equity owned by the British Pearson Group, and occupied the Chateau Latour with an absolute advantage of 93%, while the descendants of Siegel (French family) only had 7% left. equity.

In 1989, the United Leon Group acquired the shares of the Pearson Group at a sky-high price of 2 million U.S. dollars at the "Latour Total Price". Each vine is worth 1400 francs, making it the most expensive winery in the world and a well-deserved national treasure winery in France.

After buying Chateau Latour, the European and American economies are sluggish. Red wine is a luxury, and Bordeaux winery is an industry with a very low rate of return. Very thorny.

Historically, probably this year, the United Leon Group sold Latour to François Pinault, the founder of the French luxury goods giant Kering Group, for only 1.25 million US dollars, and it was also considered to be its owner.

In fact, Chateau Latour was owned by the British hundreds of years ago, because the area where it was located was a buffer zone for the Anglo-French war.

Ian, vice president of the LEIT Group, said: "We offered a price of 1.25 million US dollars, and the United Leon Group was a little hesitant, probably worried about offending the French. But it can be seen that they are very willing to sell."

Got it, I despise less money!

Lin Zuhui nodded and said, "Make an appointment with their CEO for me, I want to talk to them personally!"

Ian immediately said: "Okay, I will arrange it right away!"

At this time, Chen Shiwen became worried. He knew the boss's style, that is to achieve the goal, and generally he would not care whether the purchase was expensive or not.

Therefore, Chen Shiwen reminded: "Boss, 1.25 million US dollars is already a great pressure on the company's finances. Although our profit exceeded 1.25 million US dollars last year, we have been buying stores and expanding our business, so the funds are not abundant. It is half Prices are under pressure."

Lin Zuhui smiled and said: "Chateau Latour, I plan to let Harvey Department Store cooperate with me to buy it personally. Ian, you still need to continue to search for suitable wineries in the Bordeaux area, preferably classified wineries, large wineries It can also be considered."

Everyone was taken aback, but quickly realized that their boss was the richest man in the world, so buying a winery was nothing; as for the so-called cooperation, it was just a cover. Harvey Department Store didn't have a high shareholding, but it could be at the front.

"Ok."

United Leone Group, formerly a large state-owned group of the London government, mainly produces related military equipment for the London military and the defense of European countries.With the constant changes in the economic and political situation and the infiltration of capital from various countries, its system and business operations have also changed accordingly.In the 90s, with the approval of the London government, it officially changed its name to the British Leon International Investment Group. Now, except for a small number of product production controlled by the government, most of its business is aimed at industrial investment and related securities industries in the global field.

Chateau Latour is undoubtedly a loss-making business for the United Leon Group.

United Leon Group, London headquarters.

President Lahm met with the Wertheimer brothers behind Chanel (Chanel). He couldn't help but sigh that the French would really pick an opportunity. At this time, they came to ask about the sale of Chateau Latour, no doubt they wanted to take advantage of the low price.

Unilion did want to sell the asset, which would result in substantial losses, but could cost even more if it was not sold in time.

Ram said: "To tell the truth, Mr. Wertheimer, the British high-end department store 'Harvey' is also negotiating with us. They offered 1.25 million US dollars, but we did not agree. Do you know why?"

Gerard Wertheimer said: "Why?"

Ram thought he took good care of the feelings of the French brothers, so he said proudly: "Because the owner of this department store is already a Chinese, and Chateau Latour is a first-class red wine estate in France, it should not be reduced to Therefore, we also attach great importance to the relationship between the two countries." After speaking, he looked at the Wertheimer brothers, hoping to hear words of thanks.

It's a pity that the Wertheimer brothers are businessmen, and they can see in each other's eyes that they don't believe Lahm's words.

They believed that the reason why Ram said this was nothing more than to let the brothers pay a higher price and kill them both.

Therefore, Gerald Wertheimer said: "Really? We still think that 1.25 million US dollars is too expensive. Mr. Ram should know that the European and American economies have been sluggish for many years, and the sales of Chateau Latour are not optimistic. And it’s still increasing So, we’re looking at $1.15 million for acquisitions.”

Ram was dumbfounded, and couldn't help cursing in his heart, the French deserved to lose Chateau Latour.

"Since this is the case, it is impossible to conclude this deal for the time being. If you two figure it out, let's talk again!"

"If the price is right, we can close the deal at any time."

"please!"

Ram wished he could drive the Wertheimer brothers out, he was so ignorant!

After a while, Ram's assistant came in and said, "President Ram, the owner of Harvey Department Store and the richest man in the world, Mr. Lin Zuhui, would like to meet with you to discuss matters concerning Chateau Latour."

Ram was taken aback. He actually wanted to continue selling the Latour Hotel to the French. Of course, the price must be 1.25 million US dollars. Although this price is a lot of losses, it is at least reasonable for now.

As for the sale to 'Harvey Department Store', Ram was still very worried about causing protests from the French, so he did not agree.

However, Lin Zuhui is the richest man in the world, and he has just invested another 9 million pounds in London, and he is in the limelight; therefore, he agreed to meet no matter what.

"Arrange your time, I'm free anytime."

"Ok"

Lin Zuhui came to the United Leon Group, hoping to cut through the mess quickly and take over Chateau Latour.

The reason is simple, it must be taken down before the French react.

As for how the following things will develop and how the French are making trouble, he has already got it, so why not be afraid!

Occupying the commanding heights of the rules, Lin Zuhui has a greater initiative.It is impossible for the French to rob clearly, after all, it is related to the reputation of a country.

Of course, it may not have been so smooth. The Japanese bought Liguan Chateau, a famous third-level winery, for two full years; however, the Japanese bought it from France at that time, so there were many difficulties.

"Mr. Lin, hello!"

"Mr. Ram, hello!"

As soon as the two parties met, they seemed very enthusiastic. Lahm was more annoyed at the Frenchman's arrogance at this time, and decided to support Harvey Department Store to receive Chateau Latour, of course, the price is higher.

After the two parties sat down, Lin Zuhui explained his intentions: "Mr. Lahm, we intend to acquire the shares of Chateau Latour in your hands, and we are very sincere!"

Ram pretended to hesitate, and then said: "Mr. Lin, you may not know what Chateau Latour means to the French. Back then, we were also in a difficult situation!"

Lin Zuhui said calmly: "They are all commodities, there are not so many rules and regulations. Didn't the Japanese buy the classified winery back then. Therefore, we are willing to bid 1.35 million US dollars to buy it. I believe that the French will not give you this price."

The joy on Lahm's face flashed, and soon he started haggling with Lin Zuhui again.

As a result, the two parties initially negotiated, and Harvey Department Store won it at a sky-high price of 1.4 million US dollars.Of course, this is only a verbal agreement between the two parties, and then they have to go to Bordeaux, France to negotiate.

This is also the news that Lin Zuhui learned from Lahm. He originally thought that he could sign the contract directly in London, but Lahm told him that he had to register with the Bordeaux Land Commission so that he could take over Château Latour smoothly.

Otherwise, even if the signing is successful in London, if there is a strong reaction there, the deal will be difficult to conclude.

(End of this chapter)