Chapter 46 Methods of Cooperation
“I have some ideas about the Independent, Your Highness the Duke.”
“You can tell me whatever you have in mind, Laura.”
After separating from the editor-in-chief of "The Independent" and returning to DS Capital's office, Barron encouraged her after hearing Wang Wanting's words.
It is worth mentioning that Canary Wharf is very close to the City of London. It was originally rebuilt to solve the crowded office situation in the City. Since there are many financial, multinational companies and media settled there , Canary Wharf is also known as the second Financial City.
"Since Your Highness the Duke is planning to acquire The Independent, why not entrust this matter to a firm? After all, if it is a firm as large as the Big Four, it will have a better understanding of the financial situation of many companies..."
Hearing what Wang Wanting said, Barron understood many of her subtexts.
Don’t be fooled by the so-called professional ethics of many European and American companies. In fact, when it comes to interests, they are more “flexible” than anyone else.
The most typical one is the "largest financial fraud case in history" that broke out last year, involving Enron's financial fraud amounting to US$60 billion.
In this incident, Enron used a series of fraudulent means to inflate its revenue and profits and deceive investors and regulators.
Enron's financial fraud was so clever that it not only deceived regulators and investors, but also deceived the company's internal executives and board members.
The person who helped Enron carry out "financial fraud" was Andersen, one of the "big five" accounting firms in the world.
It’s just that after that, because the impact was too bad, Anxinda’s credibility was ruined, and the “Big Five” became the “Big Four”...
And like one of the largest banks in the UK HSBC, the largest bank, has privately leaked confidential customer information, not just once or twice...
So the meaning of Wang Wanting's words is that almost all firms now have the business of helping companies with mergers and acquisitions. At the same time, They are also responsible for the financial audits of many companies.
Moreover, during the acquisition process, the financial status of the target company needs to be audited. Hiring a firm to perform these tasks can be said to be a one-stop service.
Of course, the more well-known a firm is, the higher the commission it charges, but judging from the final effect, these commissions are definitely worth the money.
"Then I'll leave this matter to you, Laura. Choose a firm and give me advice on acquiring The Independent. If it's suitable, you can contact the other party and start negotiations."
......
"I have been looking forward to a frank conversation with you, Your Highness."
"That's why I'm here today."
To be precise, this is Barron's fourth meeting with Ian Butt. After getting enough information about King's Cross, He was also prepared to have a good talk with the other party.
“Perhaps you have also heard about the King’s Cross renovation plan, but what I need to state is that in any case, at this point, I am cooperating with you and your family in good faith. The goodwill, including the previous suggestion to purchase the gas storage tank plot, is also to help your family tide over the difficulties."
As for Viscount Bute's statement, Barron wisely did not pursue it further. None of this matters now.
“And frankly speaking, regarding the renovation plan of King’s Cross, although the Kenton District Government has submitted an application to the city council, it has not yet been finalized. After all, it involves funding for the construction of public areas. , no one knows how long it will take, and we can’t have high expectations for their efficiency.”
Having said this, Ian spread his hands:
“It is very likely that we need to be prepared to wait for several years before starting construction on those plots.”
“But no matter what, it’s hard to say The transformation of King's Cross is a response to the growing shortage of offices and homes in Greater London. It must be carried out, isn't it? This is the only place in London that can face big development." Viscount Bute fully agreed with Barron's words:
"I agree with this, which is why I made the bet. The reason for this.”
"So if it is cooperation, how do you want it to proceed?"
Facing the question raised by Barron, Viscount Bute said:
"Your Highness, your family now owns the abandoned The area of the gas storage tank is about 6 hectares. Although it is industrial land, in the entire King's Cross area renovation plan, the location of that land is relatively good. According to the information I have received, the entire King's Cross area is currently expected to be The area involved in the district reconstruction plan will not be larger than 30 hectares. "
"My partners and I expect that the land we have will be within this range. Together, we will hold more than half of the land in the entire King's Cross area renovation plan. If we exclude King's Cross Station and St. Pancras Railway Station, as well as the public areas planned by the government... it can be said that we have been able to "As far as Barron knows, the total area of land owned by Viscount Bute is only 5.5 hectares, and according to what he said and the information Barron obtained...
"Have you reached cooperation with the Coal and Grain Merchants Association?"
Faced with Barron's question, Viscount Bute showed a meaningful smile:
"These will be resolved after we reach cooperation. , you will know, His Highness the Duke."
"Then tell me your cooperation suggestions, Lord Bute."
"There are actually two ways, the first is yours. The gas storage tank plot can maintain the independence of the transformation, join our alliance, and advance and retreat together; the second is that we form a joint venture real estate development company together, and allocate the shares based on factors such as the value of the plot and the funds invested. In this way, this This company has a great possibility of becoming the general developer of the entire King's Cross area renovation plan, and can also obtain orders for the renovation of other areas, including public areas..."
Viscount Bute paused, looked at Barron and said:
“Considering that the entire King’s Cross area renovation plan will be comparable to the urban renewal plan of Canary Wharf, it may last for ten years in phases. It will take twenty years, so I still suggest to His Highness the Duke that you participate in our joint venture..."< br>
“After all, whether negotiating with the government or surrounding resident groups, a strong whole can guarantee the interests of us landowners...”
Before Barron and his The family does not have much experience in real estate development, which is what he lacks at this time.
According to Viscount Bute, according to business analysis, the biggest economic benefits can be obtained from the real estate renovation in King's Cross area, which is to build office buildings for rent or sale, followed by high-end residential apartments, and the remaining There are also shops and other commercial facilities below.
But the problem is that neither the government nor the resident groups in the area will allow them to build too many office buildings and high-end residences. They must control these within a certain proportion and provide a considerable amount of low-cost housing. Rent and other guaranteed housing.
The question arises. If landowners like them go their own way, then for the sake of economic interests, they will definitely be willing to build office buildings and high-end residences. Who is willing to build low-rent housing?
If everyone rushes to pursue economic interests like this, the final renovation plan will definitely not be passed.
So it is the most acceptable way to unite various landowners - at least most of them, and distribute the transformation of these lands through shares.
No one will argue about which piece of land to build which building. The planning will be unified. The final benefits will be distributed according to the initial shares. There will be no disagreement.
As for the landowners who say they don’t want to join in?
That’s easy to do. There is no need to force the other party. After leading the construction of this renovation plan, which plots will have more appreciation potential due to planning, and which plots will be built with low-rent housing nearby? As a result, there are no conditions for building high-end office areas and high-end residences...
These can be adjusted by the joint venture company.
The data during the new book period is related to subsequent recommendations, so follow-up reading is very important. I beg you not to keep it all the time. If you feel it is okay, read it every day to help increase follow-up reading. Thank you very much.
(End of this chapter)