Reborn In 1983: Starting With Reclaiming My Birthright Chapter 359: Acquiring Longyu Realty (1) - Novel Cool

Chapter 359: Acquiring Longyu Realty (1)

Chapter 359: Acquiring Longyu Realty (1)

Nie Zan bought many large red lanterns. After wrapping the dumplings, he and Gu Haifan hung the lanterns together.

Gu Xiuxiu said affectionately, "Jiaxin, Nie Zan is a good man. You must cherish him."

Lu Jiaxin replied playfully, "Auntie, you've got it backwards. It's he who should cherish me. After all, he's older than I am."

Gu Xiuxiu laughed and said, "It's better for a man to be older. They know how to care for their loved ones. Your grandfather doted on me, and I've had a comfortable life all these years."

Changing the subject, Lu Jiaxin laughed.

After dinner, Nie Zan and Gu Haifan lit all the lanterns. They then left with Lu Jiaxin to spend some time alone, having spent the entire day at Gu's residence.

The two went to Central Street, which was adorned with colorful lanterns and bustling with celebrations for the Yuanxiao Festival. Strolling and chatting, they stayed together until past eleven o'clock before parting ways to return to their respective homes.

With the new semester starting, Lu Jiaxin was once again busy with her studies. However, this semester was much more relaxed as most of her courses were already completed last year.

On Wednesday, after school, Lu Jiaxin returned to the apartment, where He Bin eagerly shared with her the information he had gathered about Longyu.

Longyu Realty's profits were higher than those of other real estate companies due to their focus on office buildings and high-end apartments, with a smaller proportion of shops and residential buildings. As mainland China opened up, many foreign companies entered Hong Kong, leading to a decrease in vacancy rates and an increase in rent for office spaces. High-end apartments were also in high demand.

Lu Jiaxin carefully studied the information He Bin had previously given her about the four real estate companies, but her main interest was in comparing them to Longyu.

He Bin said, "Boss, the real estate market is booming again, and Longyu's quality assets will surely appreciate. If you want to succeed in the acquisition, you'll likely need to offer a premium."

This was within Lu Jiaxin's expectations, and she nodded, "I'll consider it."

She then called Su Heyuan to discuss this matter, "I've looked into Longyu Company, and they seem impressive. I want to acquire them. Su ge, please ask your friend about the owner's asking price."

Su Heyuan readily agreed and then brought up the topic of the green dollar/yen exchange rate, "Jiaxin, it's dropped quite a bit again. I'm thinking of closing my position."

Lu Jiaxin smiled and said, "You can close your position now if you want. But based on my speculation, the exchange rate won't recover this year. If you want to make some pocket money, you can continue buying."

"Will the yen keep appreciating?" Su Heyuan asked, surprised.

Lu Jiaxin, knowing that her prediction was based on her knowledge of the yen's performance in her previous life, replied, "It's just my speculation. The market will determine the actual outcome."

"So, have you bought any?" he asked.

There was no need to hide it anymore. Lu Jiaxin said, "Yes, with a 10-times leverage. I think it will continue to drop, so I plan to close my position after some time."

Su Heyuan exclaimed in admiration, "Then you must have made more than three times your investment! How much capital did you put in, and when did you buy it?"

Lu Jiaxin vaguely replied, "Thirty million green dollars. I bought it in October."

With an initial investment of 30 million, the exchange rate had dropped by more than 20% since October, and with a 10-times leverage, she had profited over 60 million green dollars.

However, as he thought about what Lu Jiaxin had accomplished recently, he suddenly felt something was amiss, "All your money is in the foreign exchange account. Where did you get the money to buy the villa and acquire the company?"

Lu Jiaxin felt that the more she explained, the more misunderstandings there would be, "When did I say all my money was in the foreign exchange account? Also, I made a 30% down payment on this villa, and the rest is mortgaged. For the acquisition of Longyu Realty, I also plan to make a 30% down payment and mortgage the rest."

Frowning, Su Heyuan said, "Longyu Realty's properties are valued at 130 million, minus the debt. Their net assets are around 80 million or more. If you make a 30% down payment, you'll need to borrow over 50 million. Without a company or collateral, the bank won't lend you that much money."

Lu Jiaxin added, "If I can't get Longyu Realty for 80 million, I estimate I'll have to offer a premium of 10 to 20%. Even with a 20% premium, it's still worth it."

"If the bank doesn't lend you the money, you won't be able to acquire the company unless you go to Wansheng Bank. But the Nie family already dislikes you for being from the mainland. If you go to Wansheng Bank for a loan, their prejudice against you will only grow stronger."

Lu Jiaxin assured him that she wouldn't seek a loan from Wansheng Bank, "You don't have to worry about the loan. I have a way to handle it."

Not only did she have a substantial amount in the foreign exchange market, but she also had over 10 million green dollars in her account. With this, the Bank of Hong Kong would be willing to lend her money. She was also aware of the improving real estate market, so she planned to acquire a real estate company and then purchase a large number of quality properties.

Seeing her confidence, Su Heyuan understood that she still had money to spare, "Alright, I'll call him now and ask him to join us for dinner tonight."

At 11 p.m., Su Heyuan called Lu Jiaxin. The call connected quickly, but the person who answered the phone was not Lu Jiaxin.

Gu Wenfeng said, "Su boss, my boss went to bed half an hour ago. If there's anything, you can tell me, and I'll pass it on to her in the morning."

There was no need to disturb her unless it was an extremely urgent matter.

Su Heyuan trusted him and said, "Tell Jiaxin that Longyu Realty's net assets are around 76 million. The owner is asking for 100 million. When she wakes up tomorrow, let her know."

"Okay," Gu Wenfeng replied.

The next morning, Lu Jiaxin called Su Heyuan after learning about the situation. Hearing his sleepy voice, she knew he had just woken up, "Su ge, the price is fine."

Su Heyuan immediately said, "Let's not rush. First, we'll negotiate with Longyu Realty and try to bring the price down by 3 to 5 million."

Lu Jiaxin smiled and said, "Su ge, the real estate market is hot right now, and the offices and shops have seen significant increases compared to the same period last year. If the other party is willing to lower the price a little, that would be great. If the owner is unwilling, it's fine. Tomorrow, I'll send someone to negotiate with the owner. If they agree to the sale, you can accompany me to sign the contract."

Only after signing the letter of intent for acquisition could she send lawyers and auditors to Longyu. Real estate companies had relatively simple operations, so the audit would be quick.

Su Heyuan immediately said, "Send someone? I'll go with you. This is a billion-dollar deal; it's not a joke. I wouldn't feel comfortable sending someone else."

Lu Jiaxin wasn't worried about He Bin cheating her. If he dared to deceive her, she could take him to court. He Bin was a cautious person and wouldn't do something that would ruin his future. However, since Su Heyuan was willing to help with the negotiation, that would be even better. After all, his friend was a relative of the owner, and having him there might help lower the price.

"Su ge, thank you for your help," Lu Jiaxin said gratefully.

Su Heyuan smiled and said, "We're all family. Why are you being so formal? Just wait for my good news!"

"Alright, I'll wait," Lu Jiaxin replied.

(End of Chapter)

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