Rebirth 1983: Building My Business Empire
Chapter 370 - Chapter 370 Chapter 359 Acquiring Longyu Real Estate (1)

Chapter 370: Chapter 359: Acquiring Longyu Real Estate (1) Chapter 370: Chapter 359: Acquiring Longyu Real Estate (1) Nie Zhan bought many big red lanterns, and after wrapping the glutinous rice balls, he and Guh Haifan hung up the lanterns together.

Guh Xiuxiu said with a loving face, “Jiaxin, Nie Zhan is a good man, you must hold on to him well.”

Lu Jiaxin playfully stated that she was also very good, “Aunt, you’ve got it backwards. He should cherish me well, especially since he’s so much older than me.”

Guh Xiuxiu laughed, “It’s good for a man to be older than a woman, he knows how to be caring. The old master was very kind to me, allowing me to live such a good life for so many years.”

Lu Jiaxin changed the subject with a smile.

After dinner, Nie Zhan, with Guh Haifan, lit all the lanterns and then left with Lu Jiaxin. They had spent the whole day at the Guh Residence and needed some time alone together.

The two went to Central Street because of the Lantern Festival, the place was decorated with lights and bustling with excitement. They strolled and chatted, affectionately lingering until after eleven before parting ways to each return home.

School started, and Lu Jiaxin became busy again. However, since she had already completed her coursework this semester, she had a much lighter load than last year.

When she returned to her apartment after school on Wednesday, He Bin immediately reported to her what he had learned about Longyu Real Estate.

Longyu Real Estate had higher profits than other real estate companies because their office buildings and luxury apartments made up a larger proportion, with fewer retail spaces and residential buildings. As the Mainland opened up, many foreign companies set up in Hong Kong, reducing office vacancy rates and increasing rent, with luxury apartments also in high demand.

Lu Jiaxin had carefully reviewed the information He Bin had previously provided on the four real estate companies, but none compared to Longyu.

He Bin said, “Boss, the real estate business is booming again, Longyu’s prime assets are sure to appreciate in value, expect a premium if you wish to acquire it successfully.”

This was within Lu Jiaxin’s expectations, and she nodded, “I’ll think about it.”

Then, she called Su Heyuan to discuss the matter, “I’ve looked into Longyu Company and it’s very good, I want to acquire it. Big Brother Su, could you please ask your friend how much the owner is willing to sell for?”

Su Heyuan chuckled and agreed, then started talking about the greenbacks/Japanese Yen exchange rate, “Jiaxin, it’s dropped quite a bit, I’m planning to square my position.”

Lu Jiaxin replied with a smile, “Squaring off now works too. However, by my estimation, the exchange rate won’t rebound this year. If you want to earn some extra cash, you could continue to buy.”

“Will the Yen continue to appreciate?”

Hearing his tone of surprise, Lu Jiaxin thought to herself that it was only because she knew the historical trend of the Japanese Yen from her past life; otherwise, it would be difficult to believe: “This is just my speculation; the market will have the final say.”

“Did you buy any?”

By now, there was no need to hide. Lu Jiaxin responded, “I did, with ten times leverage. I think it’ll fall further, so I’m planning to square off a bit later.”

Su Heyuan envied, “Then haven’t you earned more than triple? How much capital did you use? When did you buy in?”

Lu Jiaxin vaguely said, “Thirty million greenbacks, I bought in October.”

With a capital of thirty million, considering a more than twenty percent drop in the exchange rate since October and with ten times leverage, that meant earnings over sixty million greenbacks.

But thinking about what Lu Jiaxin had been doing during this period, he suddenly felt something was off, “All your money is in the forex account, where did you get so much to buy the villa and acquire companies?”

Lu Jiaxin felt that the more she said, the more mistakes she might make, “When did I say all my money was in the forex account? Also, I only made a thirty percent down payment on this villa, the rest is mortgaged. For acquiring Longyu Real Estate, I’m also planning a thirty percent down payment and the rest on loans.”

Su Heyuan frowned, “Longyu Real Estate properties are valued at one point three billion, less debt. The net assets are about eighty million upwards. You plan to pay a thirty percent down payment, which is to say, you’d need to borrow over fifty million. Without a company and collateral, the bank won’t lend you that much.”

Lu Jiaxin added, “We won’t get Longyu Real Estate for eighty million easily, I estimate an overpayment of ten to twenty percent, but even with the premium, it’s worth it.”

“If the bank doesn’t lend you the money, you can’t secure the company, unless you turn to Wan Sheng Bank. But given that the Nie Family already dislikes you for coming from the Mainland, if you borrow from Wan Sheng Bank and you do get the money, their bias against you would only grow.”

Lu Jiaxin expressed that she wouldn’t take out loans from Wan Sheng Bank, “Don’t worry about the loan for me, I have a way to handle it.”

Not to mention the large amount of money she still had in the forex market, with over ten million greenbacks in her account, HSBC would grant her a loan. Knowing the property market was on the upswing, her plan was to acquire the real estate company and then massively purchase high-quality properties.

Seeing her confident tone, Su Heyuan understood she still had reserves, “Okay, I’ll call now and arrange to have dinner with him tonight.”

At eleven that night, Su Heyuan called Lu Jiaxin. The call connected quickly, but the person who answered wasn’t Lu Jiaxin.

Gu Wenfeng said, “Boss Su, my boss went to sleep half an hour ago. You can tell me what it is, and I’ll pass it on to her in the morning.”

Unless it was an extremely urgent matter, he wouldn’t wake her up.

Su Heyuan trusted him and said, “Tell Jiaxin that Longyu Real Estate’s net assets are around seventy-six million, and the owner’s asking price is one hundred million. Tell her when she wakes up.”

“All right.”

The next morning, when Lu Jiaxin woke up and learned about this, she returned Su Heyuan’s call. Hearing his groggy voice, she knew he had just woken up, “Big Brother Su, the price is fine.”

Su Heyuan exclaimed upon hearing this, “Don’t rush it, we should negotiate with Longyu Real Estate first, it should be possible to push the price down by three to five million.”

Lu Jiaxin chuckled, “Big Brother Su, real estate is hot now, the office buildings and retail spaces have increased a lot compared to the same period last year. If the other party is willing to reduce a bit, that’s great, but if the owner is unwilling, it’s not a problem. I will send someone to talk to the owner tomorrow, and once it’s confirmed that he wants to sell, you can join me to sign the contract.”

Only after signing the letter of intent to acquire could she send lawyers and auditors to Longyu. Real estate company transactions were relatively simple, and the audit process would be quick.

As soon as Su Heyuan heard this, he said, “Who are you sending? I’ll negotiate with you. This deal of over a hundred million is no joke. Sending someone else while I still have reservations wouldn’t set my mind at ease!”

Lu Jiaxin wasn’t worried that He Bin would cheat her. If someone dared to falsify things in such a matter, she could directly take them to court. Considering He Bin’s cautious nature, he wouldn’t engage in anything that could ruin his career. However, Su Heyuan’s willingness to help negotiate was even better since his friend was a relative of the owner, potentially getting the price down with his presence.

“Big Brother Su, I’ll have to trouble you then.”

Su Heyuan laughed, “We’re family, why the formality? Just wait for my good news!”

“I’ll be waiting.”