Chapter 767 [King of European and American Commercial Real Estate]
Manhattan, Fuli Group Building.
After the 911 incident broke out, Lin Zuhui ordered the European and American real estate business departments of the New Era Group, such as Amazon Shopping Mall, Fuli Real Estate Investment Company, and Canary Wharf Group, to merge and reorganize their assets.
As a result, a giant group with assets worth as much as 35 billion US dollars was born, that is, the Fuli Group.
After the reorganization, Fuli Group has two business departments: retail real estate and investment real estate.
The retail real estate department naturally takes the "Amazon Shopping Center" brand as its flagship and continues to develop retail commercial real estate; currently, there are 96 Amazon shopping malls (including those under contract), with a value of more than 20 billion U.S. dollars.
Investment real estate includes the original 'Fully Real Estate Investment' and 'Canary Wharf Group', whose main business is office building investment; among them, 'Fully Real Estate Investment' quickly purchased several office buildings in the United States after the 911 incident.
, currently manages North American office assets worth more than 5 billion US dollars; among them, 'Canary Wharf Group', in addition to managing 16 million square feet of rental properties in Canary Wharf, has also invested in commercial real estate throughout Europe, with a total value of
Up to more than 8 billion US dollars.
The entire Fuli Group manages about 35 billion U.S. dollars of commercial real estate, which undoubtedly shocked the entire Europe and the United States. It is not unreasonable for the media to regard Lin Zuhui as a "world real estate tycoon".
In the conference room of Fuli Group.
Lin Zuhui looked at a group of senior executives, 80% of whom were foreigners, and felt proud in his heart. Being able to impress foreigners requires skill.
Undoubtedly, Lin Zuhui, the 'real estate tycoon', is very capable in managing and operating the entire industry. He has worked in many industries, but if there is one industry in which he is most powerful, it is undoubtedly real estate.
This is due to the fact that he started his career in real estate, and his developed brain allows him to learn quickly.
Of course, although foreigners "admire the strong", they still have the idea that "those who are not from my race must have different minds." At this time, Lin Zuhui also has a magical charm, maybe it is personality charm, maybe it is a golden finger
, in short, he got along very well with these executives, and everyone trusted each other.
In order to impress these foreign management, Lin Zuhui often personally participated in meetings and organized some gatherings.
"President Doerr, you are here to speak on the work of the new group!" Lin Zuhui nodded to a senior executive on the left.
At this Fuli Group meeting, only Lin Zuhui and Chen Bin from the headquarters attended. Chen Bin was the president of the group and could not ignore Fuli Group, so he sat on Lin Zuhui's right hand side.
Of course, in order to 'use foreigners to control foreigners', Chen Bin also delegated power to the management of Fuli Group, only as a supervisory presence, and occasionally gave some suggestions of his own.
On the contrary, although Lin Zuhui delegates power, he often puts forward his own opinions and discusses with senior executives. This is not only a kind of participation in management, but also a kind of establishment of relationships with senior executives.
Duer is the president of Fuli Group. He joined New Era Business Management as vice president in 2000. After two years of inspection, during the reorganization of Fuli Group, he gained the trust of Lin Zuhui and served as president.
After the reorganization of Fuli Group, it no longer belongs to the "New Era Business Management", but directly belongs to the leadership of the New Era Group and is on the same level as the "New Era Business Management".
Duer is in his 40s and is an American Jew. He is in the prime of life. The way he looks at Lin Zuhui is filled with respect and admiration.
He nodded and began to report.
"The completion of the reorganization of Fuli Group is equivalent to embarking on a new journey. At this time, Fuli Group owns 96 Amazon shopping malls... These huge assets currently only have liabilities of US$1.2 billion (
project), it is undoubtedly a very healthy group enterprise. Next, Fuli Group will obtain an independent financial system and will no longer receive funds from the headquarters... At the same time, Fuli Group will have to
To expand the scale, funds will come from Fuli Group’s income and loans.”
Everyone was excited to hear this. This group is so huge that if it goes public, it will definitely become the largest IPO in the history of real estate.
Of course, everyone also understands that the boss will not list Fuli Group.
At most, it is to spin off the brand and list it on the market.
In fact, it is impossible for Lin Zuhui to list Fuli Group, and his brands have no idea of listing.
After all, there is no shortage of money, so why go public?
The reason for asset reorganization is just for better development.
After listening to Duer's detailed work report, Lin Zuhui nodded, and then named Steven, who was in charge of the "retail real estate" business, who was the original president of "Amazon Shopping Center" and is now the vice president of Fuli Group.
He has been with Lin Zuhui for a long time, and the two have established a trusting relationship, which is very solid.
"Steven, do you have any plans for the task of building a 'second growth curve' for the retail real estate business?"
Steven nodded and said: "The second growth curve of Fuli Group's retail business, I think it can enter 'outlets' and 'metropolitan shopping malls'."
Outlets is not a brand name. Outlets is the Chinese literal translation of the English Outlets. It refers to a shopping mall composed of stores that sell out-of-season, off-shelf, and out-of-order products of famous brands. Therefore, it is also called "brand direct sales."
"Shopping mall" was first born in the United States and has a history of more than 100 years. In the early days, in order to deal with commodity inventory, some factories sent some surplus goods and damaged goods to employees, and opened the warehouse to sell them on the spot. This was the earliest order.
store outlet model. The role of real estate developers is still that of 'rent collectors', building hundreds of millions of outlets and leasing the shops inside to factories for rent collection and management; so outlets, and
It's called a 'factory direct sales center' in the United States.
This chapter is not over yet, please click on the next page to continue reading! In other words, the famous 'outlets' in the mainland in later generations are not the brands of a certain company, but may be many real estate properties sniffing the outlet business opportunities.
Businessmen are copying the imported product of outlets in many cities across the country.
At present, there are no outlets in China, not even a single store. As for when there was one in the past life, it is unknown, but it seems that it will take a long time before it appears.
After all, the mainland is now in the era of retail real estate where ‘shopping malls’ are taking over ‘traditional department stores’.
In the same way, Metropolis Shopping Center is not a brand. It is probably a fashionable shopping mall with the core value concept of "fast, popular, affordable and limited edition". Entertainment and fashion account for a very large proportion.
Lin Zuhui nodded and said, "I think your idea is very good, but do you have a specific plan?"
Steven immediately said: "Yes! We have set our sights on 'Chelsea Real Estate Company', which is a 'big internet celebrity (translator)' company in outlets. It is located in New York, Los Angeles, Orlando, and Las Vegas.
There are 31 branded discount villages around tourist cities, and there are also layouts in Japan and Mexico...As for the metropolitan shopping malls, they will be retained for the time being."
Lin Zuhui said with satisfaction: "Well, after collecting the detailed information of Chelsea Real Estate, we will discuss the acquisition plan... If the acquisition is finally reached and we digest the 'Chelsea Real Estate', then we must continue to develop North America.
Outlet stores. I remember that there are no outlets in China yet. By then, Fuli Group can cooperate with New Era Business Management and jointly enter China Outlet Stores."
Steven admired the boss's long-term vision and immediately said: "No problem, boss!"
Next, Lin Zuhui said: "The European and American economies have been adjusted. The next five years will be an explosive period. I hope you can come up with an efficient expansion plan."
"Yes, BOSS"
Lin Zuhui nodded with satisfaction. He is naturally the best at real estate. In addition, real estate is almost not affected by politics, unless it involves the residential field.
Therefore, he plans to use this wave to increase Fuli Group's net assets to more than US$100 billion by mid-2007.
As for whether it will be easy to cash out "part of the assets" by then, Lin Zuhui is not worried at all.
Because he knew that in his previous life, Blackstone acquired a real estate company worth more than 30 billion U.S. dollars in 2007, and then felt financial pressure or crisis, and sold more than 20 billion U.S. dollars of properties in just two months; because most people are not in crisis.
Consciously, after Blackstone spread the word, major real estate developers were like mad dogs, picking out their favorite bones.
.......
A week later, Steven and others had prepared the plan and information for the acquisition of ‘Chelsea Real Estate’.
This Chelsea property belongs to a REIT (Real Estate Investment Trust), which means it has no 'owner' and they will sell it as long as the price is reasonable.
At this time, the ownership structure of U.S. factory outlets has undergone dramatic changes, with REITs dominating the outlet center market, with Chelsea Properties, Tangle Factory Outlet Centers, First Retail and Horizon Group owning approximately 75% of the market's total leased area.
%.
Among them, Chelsea Properties has a total lettable area of 1.22 million square feet and a total of 46 outlets around the world, with an average area of 26,500 square feet.
Lin Zuhui personally participated in this acquisition. After all, the value was in the range of 3.5 to 4.5 billion US dollars, and it was a new field. He also wanted to take the opportunity to learn about it.
Before the acquisition, he said: "This acquisition will use a loan model as much as possible. Although Fuli Group still has a lot of cash flow on its books, it still needs to develop in the future."
Duer and Steven nodded. Originally, the next step was to adopt the loan model.
Steven said: "Okay, I will lead the team to negotiate the acquisition immediately."
Regarding business negotiations, Steven feels that his side still has an advantage. After all, the United States has just recovered from the 911 incident. If the price is reasonable, the REIT side will not hesitate.
Influenced by his boss, he was very optimistic about the future of the European and American economy and real estate industry, and he had an advantage in his mind.
.......
Steven led his team to meet with the REIT side of Chelsea Real Estate and the management of Chelsea Real Estate. The two parties started a second negotiation in the conference room.
Judging from a previous negotiation, the REIT intends to sell, but it is just to see if the price can be higher.
As for the management of Chelsea Real Estate, they actually have no choice or decision-making power, but they are also enthusiastic about transactions. After all, it is easy to enjoy the shade under the big trees.
Fuli Group is well-known in the European and American real estate industry. It is a star giant real estate group. Although it is backed by Chinese capital, its management is almost entirely composed of European and American talents. Because of this, this group is not acclimatized. It is also because of this.
Lin Zuhui was named the best manager of the century.
"Mr. Will, we are very sincere about the acquisition of Chelsea Real Estate. This time we have brought a new offer, which is worth US$4.2 billion (including debt). According to the market valuation of Chelsea Real Estate, this has generated more than 10%
premium."
Will, the person in charge of the REIT, was still dissatisfied with the quotation and said: "You don't seem to have calculated the price attached by the company. Chelsea Real Estate is currently the No. 1 outlet store and is still expanding. If the price is too cheap, we will
Why not keep growing and sell at a higher price!”
Steven smiled and said: "We can't buy current assets at future prices!"
After a confrontation, both parties were relatively sincere, but in the end they could not agree on the price.
........
After Lin Zuhui learned about the result of the second negotiation, he thought about it and said to Steven: "Although Chelsea Real Estate is the No. 1 outlet, the second place Tanger Factory Outlet Sales Center is very close to his area.
, even the third-placed 'No. 1 Retail' is not far behind."
This chapter is not finished yet, please click the next page to continue reading the exciting content! As a general who has followed him for many years, Steven is not only loyal (source of mysterious personality charm), but more importantly, his ability is very outstanding. He quickly understood that Lin Zuhui wanted to
the meaning expressed.
"What BOSS means is that we try to contact Tanger Factory Direct Sales Center before letting the news out?"
"That's possible, but we have to negotiate with Chelsea Real Estate at the same time. After all, public opinion will not make a decisive contribution, it can only be used as a boost. As for the price, we can continue to make concessions."
Sometimes buying assets is like this. You can't miss out on a good asset just because of its small value.
Steven understood what Lin Zuhui meant and said: "No problem, the negotiations are actually about to make progress this time."
Lin Zuhui nodded and said: "I will not participate in the follow-up, the power is in your hands!"
"Okay, BOSS"
In fact, he, the boss, cannot decide whether it is expensive or not. After all, he wants to buy it, but he is not directly involved in the acquisition. Therefore, the price is controlled by Steven and other executives.
We have built enough trust through working together over the years.
Of course, things like this are somewhat unpleasant, but not in Lin Zuhui's company, but in Li Chaoren's. It is said that before Ma Shimin resigned, Li Chaoren was somewhat dissatisfied with Ma Shimin's high price purchase of Husky. Of course, this is the media's fault.
Report.
As for whether Lin Zuhui was dissatisfied with his subordinates' negotiations, he could say to himself that he had never been dissatisfied or even cared about it. What's more, he felt that his subordinates had saved him a lot of money. If he were the one negotiating,
The premium will be higher, after all, the long-term vision will not save the current point.
...
Sure enough, in the third negotiation between Fuli Group and Chelsea Real Estate REIT, the two parties quickly reached a transaction intention.
The reason why it was so smooth was that Fuli Group agreed to acquire the company for US$43.8 (including debt). Although this price was still a US$100-200 million gap from the REIT side, it was not unacceptable to them;
Secondly, after hearing that Fuli Group was in contact with Tanger Factory Direct Sales Center, the REIT side was also worried that the transaction would be completely void;
Finally, of course, the European and American economies are not particularly clear at this time, so you can sell if the price is profitable.
...
Fuli Group's "high-profile" entry into outlets was quickly reported by the American media. Some media once again described Lin Zuhui as the "American real estate king."
Of course, being high-profile is not Lin Zuhui’s original wish, but Chelsea Properties, as the leader in the outlet industry, naturally attracts much attention; and Fuli Group is also the overlord of the industry, and every move it makes attracts attention.
Fortunately, the commercial real estate field will hardly be affected by politics unless the relationship between the two countries is particularly bad. In the previous life, from 2015 to 2017, Z-owned enterprises spent US$10 billion a year in the United States to purchase commercial real estate. At present, Lehman et al.
American real estate investment companies have also invested heavily in China's real estate industry.
In Lin Zuhui's mind, real estate is the core of the New Era Group. As long as the group's debt ratio is low, it will be a safe rent collector.
As for before 2020, Lin Zuhui will only cash out part of the real estate, but will not clear it out on a large scale.