Witnessed by the media, Richman led a group of investors to redeem the unfinished Canary Wharf project from major creditor banks for 1.5 billion pounds.
Of course, what attracts the most attention to the media is that the Hong Kong-owned ‘New Era Group’ invested 60% of the entire project.
For a time, European and American reporters were in an uproar, and Chinese reporters were greatly encouraged.
As the new richest man in the world, he is also chased by reporters for interviews.
"The Times": "Mr. Lin, after buying eight office buildings in Manhattan, New York, this is your second time buying commercial real estate in London. With the economic downturn in Europe and the United States, what made you make such a decision?"
Lin Zuhui: "I have an investment philosophy, which is - when the market is panic, I am greedy, and when the market is greedy, I am panic. Therefore, with the European and American economies declining for several consecutive years, I personally believe that there will be a turnaround soon.
The economy will bottom out. Of course, the Canary Wharf project is worth investing at any time, and I have reason to believe that it will be another commercial CBD in London."
The New York Post, which always likes to dig holes, also asked questions.
"Mr. Lin has invested heavily in European and American industries. Is he worried?"
"Currently, European and American investment 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 roughneck". No matter where he goes, Lin Zuhui is the most popular among reporters. The most important factor is that he is too young and makes people think he is very legendary.
Now, as a Chinese, he started from a 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 invest 900 million pounds, approximately 10.5 billion Hong Kong dollars.
With such a huge amount of money, it is impossible not to borrow money. HSBC and Citigroup have already agreed to provide loans totaling HK$3 billion.
Lin Zuhui planned to borrow 5.5 billion, so he asked Liang Zhenxun to return to Hong Kong to negotiate with various banks for the remaining 2.5 billion. I believe there will be no big problem.
What's more, New Era Group actually has a cash flow of nearly 10 billion Hong Kong dollars in its accounts, and this is after just paying nearly 4 billion for the "Diamond Mountain King" fee.
As a result, New Era Group's debt has reached 21 billion Hong Kong dollars, not counting bonds (convertible bonds will basically be converted into stocks in the end, so debt will not be counted and interest will not accrue).
One year's interest is only about 2 billion Hong Kong dollars, which is quite heartbreaking.
However, New Era Group's profits have soared this year. If the rental income of Fuli Real Estate is included, Lin Zuhui once again gave an "overestimation" of HK$15 billion.
As for the Canary Wharf project, there is no hope of recovering even a penny of capital before the 21st century.
Eight office buildings (600,000 square meters) have been built so far, with an occupancy rate of only 40%, and the prices are relatively low. Even if there are profits, they will be used to restart the project and support the government's infrastructure construction.
According to Lin Zuhui's idea, it will be listed in 1999 when the rent collection rate reaches 99%, and the funds raised will be used to repay debts and continue investment.
Next, dividends can be distributed every year. Dividends are the second step. Lin Zuhui can take advantage of the opportunity of listing and then strengthen his control of the group (increase his shareholding).
Then we will continue to develop Canary Wharf and surrounding projects.
Lin Zuhui's every move in London soon spread to the world through the media here. He was just promoted to the world's richest man and is now also known as the largest investor in Canary Wharf. It immediately aroused great repercussions around the world.
.
Many media outlets use exaggerated tactics like "the world's richest man bought New York and London" to attract attention.
The public opinion in Xiangjiang itself was even more shocked. It was no less than dropping a depth charge on the calm water, causing huge waves.
Of course, it still gets rave reviews, but it’s more about Chinese pride.
London, a division of the Leit Group.
In the conference room, Lin Zuhui was having a meeting with some senior executives of Leit Group, including Leit Group CEO Chen Shiwen, Leit Group Vice President Ian, and its subsidiary's "Harvey Nicks Department Store" CEO Joseph and others.
Leit Group is currently internationalized and has a lot of foreign designers and some foreign senior executives, because this is conducive to the company's internationalization.
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 'Jeanswest', a fast-selling brand, open a flagship store on Fifth Avenue, not for
The purpose of making money is to increase one's worth, and to receive and publish trends as soon as possible.
Lin Zuhui asked: "How is the situation at Harvey's Department Store?"
Joseph reported seriously: "The operation is very ideal. The current turnover ranks second among the three major boutique department stores in the UK, and the annual profit can reach 8 million pounds."
I spent 52 million pounds to buy it, and it seems that the payback time is 7 years, which is very good. If bank interest is taken into account, it may take longer to pay back the capital.
However, we must also consider that the economic recovery in Europe and the United States will lead to an increase in consumption levels and profits will increase.
To achieve such impressive results, it is natural that this department store has changed its business strategy, otherwise it would be losing money.
Lin Zuhui nodded and said: "The situation is very good. We will continue to optimize our business, improve our services, and strive to achieve better results."
"Okay, boss!"
Counting on normal profits to recover investment is not Lin Zuhui's style.
Waiting for another three or four years, taking advantage of the strong economic growth in Europe and the United States, listing it and then cashing out part of it is the right way to go.
It is inevitable that the department store industry will be completely replaced by shopping malls in the 21st century.
Then, Lin Zuhui asked: "How is the progress of the acquisition of Chateau Latour?"
This chapter is not finished yet, please click on the next page to continue reading the exciting content! Yes, Lin Zuhui is acquiring 93% of the shares of Chateau Latour from the British company United Lyon Group.
Chateau Latour is one of the five first-class wineries in France. The classified wineries selected by France in 1855 are divided into five levels. Even the fifth-level wineries are national treasures of France and are regarded as French
Culture is rarely sold to foreigners.
There are only 65 wineries that can be selected as classified growth wineries, and there are 7,000 red wine estates in the entire Bordeaux region of France, which shows how rare the classified wineries are.
So how did Chateau Latour come into British hands?
In 1962, the British Pearson Group acquired 53% of the shares of Latour, becoming the largest shareholder of the family winery. In addition, the British Hawe Group also acquired 25% of the shares. At that time, it caused a huge sensation in France.
Some media and people even use the term "traitor" to describe sellers.
Soon after, the Hawe Group was acquired by the United Leon Group. In 1989, the United Leon Group continued its efforts to acquire the shares of Latour owned by the British Pearson Group, occupying the Chateau Latour with an absolute advantage of 93%. At that time, Siger
The descendants of Er (French family) only have 7% of the shares left.
In 1989, the United Leon Group acquired Pearson Group's equity at a sky-high price of US$200 million in Latour. It is said that the unit price per hectare of the winery at that time was 14 million francs (1 US dollar equals 5.8 francs), which translates into
Each vine is worth 1,800 francs, making it the most expensive winery in the world and a well-deserved national treasure winery in France.
After buying all Chateau Latour, the economic downturn in Europe and the United States followed. Red wine is a luxury product, and Bordeaux winery is an industry with a very poor return rate. Therefore, the United Leon Group is now interested in the Latour in its hands.
Very prickly.
Historically, probably this year, the United Lyon Group sold Latour to François Pinault, the founder of the French luxury goods giant Kering Group, for only US$125 million, which can be regarded as the owner of the property.
In fact, Chateau Latour had British shares hundreds of years ago because the area it was located in was a buffer zone during the war between Britain and France.
Ian, vice president of Leit Group, said: "We offered US$125 million, and the United Leon Group was a little hesitant, probably worried about offending the French. But it is obvious that they are very willing to sell."
Got it, I hate having so little money!
Lin Zuhui nodded and said: "Make an appointment with their CEO for me, I want to talk in person!"
Ian immediately said: "Okay, I'll arrange it right away!"
At this time, Chen Shiwen became worried. He knew the boss's style, which was to achieve his goal and generally not care whether the purchase was expensive or not.
Therefore, Chen Shiwen reminded: "Boss, US$125 million has put a lot of pressure on the company's finances. Although our profit exceeded US$125 million last year, we have been buying stores and expanding our business, so funds are not abundant. That's half.
The prices are a bit stressful.”
Lin Zuhui smiled and said: "Château Latour, I plan to let Harvey Department Store cooperate with me personally to purchase it. Ian, you still need to continue to search for suitable wineries in the Bordeaux region, preferably classified wineries and large wineries.
You can also consider it.”
Everyone was shocked, but they 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's Department Store didn't hold a large share, but it could take the lead.
"OK."
United Leon Group, formerly a large state-owned group of the London government, mainly produces related military equipment for the London military and the defense of various European countries. With the continuous changes in the economic and political situation and the penetration of capital from various countries, its system and business operations have also changed.
Changes followed. In the 1990s, with the approval of the London government, it was officially renamed the British Leon International Investment Group. Now, except for a small number of government-controlled product production, most of its business is aimed at industrial investment in the global field.
and related securities industries.
Chateau Latour is undoubtedly a loss-making business made by the United Leon Group.
United Lyon Group, London headquarters.
President Lahm met with the Wertheimer brothers, the bosses behind Chanel (Chanel). He couldn't help but sigh that the French really know how to choose the right time. At this time, they came to inquire about the sale of 'Château Latour', undoubtedly wanting to take advantage of the situation and take it back.
United Leon Group really wants to sell this asset. Although it will result in a large loss, if it is not sold in time, it may suffer even more losses.
Ram said: "To be honest with Mr. Wertheimer, the British high-end department store Harvey's is currently negotiating with us. They offered us US$125 million, but we did not agree. Do you know why?"
Gerald Wertheimer said: "Why?"
Ram thought he took good care of the French brothers' feelings, so he proudly said: "Considering that 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 this
In the hands of the Chinese. Therefore, we also attach great importance to the feelings between the two countries." After saying that, 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 simply to make the brothers pay a higher price and steal the money from them.
Therefore, Gerald Wertheimer said: "Really? We still feel that US$125 million is too expensive. Mr. Lahm should know that the European and American economies have been sluggish for many years, and the sales situation of Chateau Latour is not optimistic, and the cost
It's still increasing. So, we're looking to do an acquisition for $115 million."
Ram was dumbfounded and couldn't help but curse in his heart. The French deserved to lose Chateau Latour.
"In this case, it is impossible to conclude this deal for the time being. If you two can figure it out, let's talk about it again!"
This chapter is not over, please click on the next page to continue reading! "If the price is reasonable, we can complete the transaction at any time."
"please!"
Ram wants to drive the Wertheimer brothers out, he is so ignorant!
After a while, Ram's assistant walked in and said: "President Ram, the owner of Harvey's Department Store, and the world's richest man, Mr. Lin Zuhui, would like to meet with you to discuss the matter of Chateau Latour."
Ram was stunned. He actually wanted to continue selling the Latour Hotel to the French. Of course, the price had to be US$125 million. Although this price was a huge loss, at least it was relatively reasonable for now.
As for selling to Harvey's Department Store, Lahm was still worried about causing protests from the French, so he didn't agree.
However, Lin Zuhui is the richest man in the world and has just invested 900 million pounds in London, which is very popular; therefore, he must agree to meet no matter what.
"You arrange your time, I will be available at any time."
"OK"
Lin Zuhui came to the United Lyon Group, hoping to cut the knot quickly and take over Chateau Latour.
The reason is very simple, the French must be captured before they can react.
As for how things will develop later and how the French will make trouble, he has already got it, so there is nothing to fear!
Occupying the commanding heights of the rules, Lin Zuhui has greater initiative. The French cannot steal it openly, after all, this is related to the reputation of a country.
Of course, it may not have gone so smoothly. When the Japanese bought a third-level winery, Chateau Liguan, they had been negotiating for two years. However, the Japanese purchased it from France at that time, so there were many difficulties.
"Hello, Mr. Lin!"
"Hello Mr. Ram!"
As soon as the two parties met, they seemed very enthusiastic. At this time, Ram was also annoyed by the arrogant attitude of the Frenchman and decided to support Harvey Department Store and buy Chateau Latour. Of course, the price was higher.
After the two parties sat down, Lin Zuhui stated his intention: "Mr. Ram, we are very sincere in our intention to acquire your shares in Chateau Latour!"
Ram pretended to hesitate, and then said: "Mr. Lin, you may not know what Chateau Latour means to the French. That was why we were in a difficult situation back then!"
Lin Zuhui said calmly: "They are all commodities, and there are not so many rules and regulations. The Japanese also bought classified wineries back then. Therefore, we are willing to pay US$135 million to buy them. I believe that the French will not give you this price."
The joy on Ram's face flashed across his face, and he soon started bargaining with Lin Zuhui again.
As a result, the two parties reached preliminary negotiations, and Harvey Department Store was acquired at a sky-high price of US$140 million. Of course, this was only a verbal agreement between the two parties, and they would have to go to Bordeaux, France for negotiations.
This was also the news that Lin Zuhui learned from Lamu. He originally thought he could sign the contract directly in London, but Lamu told him that he had to register with the Bordeaux Land Commission so that he could successfully take over Chateau Latour.
Otherwise, even if the contract is successfully signed in London, if there is a fierce reaction there, it will be difficult to conclude the deal.