"I have some ideas about the Independent, Your Highness."
"You can tell me anything you think, Laura."
After parting with the editor-in-chief of The Independent and returning to the office of DS Capital, Barron encouraged Wang Wanting after hearing her 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. Due to the presence of many financial, multinational companies and media, Canary Wharf is also known as the second financial city.
"Since Your Highness is planning to acquire The Independent, why don't you entrust this matter to a firm? After all, if it is a firm of the Big Four, they will have a better understanding of the financial situation of many companies..."
After 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 example 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 sophisticated that it not only deceived regulators and investors, but also deceived executives and board members within the company.
The accounting firm that helped Enron commit financial fraud was Ascent Accounting, one of the "Big Five" accounting firms in the world.
However, after that, because the impact was too bad, Anxinda's reputation was ruined, and the "Big Five" became the "Big Four"…
HSBC, one of the largest banks in the UK, has leaked confidential information of its customers more than once or twice...
Therefore, what Wang Wanting meant was that almost all law firms now have business helping companies with mergers and acquisitions, and at the same time, they are also responsible for the financial audits of many companies.
Moreover, the acquisition process itself requires an audit of the target company's financial status. Hiring a firm to perform these tasks can be said to be a one-stop service.
Of course, the more well-known the firm is, the higher the commission it charges, but judging from the final results, these commissions are definitely worth the money.
"Then I'll leave this matter to you, Laura. Choose a firm and give me advice on the acquisition of The Independent. If it's a good fit, you can contact the other party and start negotiations."
…
"I have been looking forward to having a frank conversation with you, Your Highness."
"That's why I'm here today."
To be precise, this was Barron's fourth meeting with Ian Butt. After getting enough information about King's Cross, he was ready to have a good talk with the other party.
"Perhaps you have also heard about the King's Cross renovation plan, but I need to state that, in any case, at this point, I am in good faith to cooperate with you and your family, including the previous suggestion to purchase the gas tank plot, which is also to help your family overcome difficulties."
Barron wisely did not pursue Lord Bute's statement further. At this point, it no longer mattered.
"And frankly speaking, although the Kenton District Government has submitted an application to the City Council for the King's Cross renovation plan, it has not yet been finalized. After all, it involves funding for public area construction, and no one knows how long it will take. We cannot have too high expectations for their efficiency."
At this point, Ian spread his hands and said,
"It is very likely that we need to be prepared to wait for a few years before we can start construction on those plots of land."
"But in any case, given the increasing shortage of office buildings and housing in Greater London, King's Cross must be transformed, right? It's the only place in London that can face major development."
Viscount Bute agreed with Barron's words:
"I agree with this, which is why I will bet on this."
"So if it's a collaboration, how would you like it to go?"
In response to Barron's question, Viscount Bute said,
"Your Highness, your family now owns a plot of land with abandoned gas tanks covering an area of approximately 6 hectares. Although it is industrial land, it is in a relatively good location in the overall King's Cross renovation plan. According to the information I have received, the entire King's Cross renovation plan is currently expected to involve an area no larger than 30 hectares."
"My partners and I are expected to own more than 10 hectares of land within this range. Therefore, together, we will own more than half of the land within the King's Cross redevelopment plan. If we remove King's Cross Station and St. Pancras Railway Station, as well as the public areas planned by the government... we can say that we have been able to take a leading role in this redevelopment plan."
As far as Barron knew, the total area of land owned by Viscount Bute was only 5.5 hectares, and according to what he said and the information Barron had obtained...
"Have you reached a cooperation agreement with the Coal and Grain Merchants Association?"
In response to Barron's question, Viscount Bute smiled meaningfully:
"You will know these after we reach a cooperation, Your Highness."
"Then tell me what you propose for cooperation, Lord Bute."
"There are actually two ways. The first is that your gas tank plot can maintain its independence for renovation and join our alliance to advance and retreat together. The second is that we can jointly establish a joint venture real estate development company and distribute shares based on factors such as the value of the plot and the amount of money invested. In this way, this company will have a great chance of becoming the general developer of the entire King's Cross renovation plan and will also be able to obtain orders for renovations in other areas, including public areas..."
Viscount Bute paused, looked at Barron and said:
"Considering that the renovation plan for the entire King's Cross area will be an urban renewal plan comparable to Canary Wharf, and may last for ten to twenty years in stages, I still suggest that Your Highness, you participate in our joint venture..."
"After all, whether it is negotiating with the government or those surrounding residents' groups, a strong whole can guarantee the interests of us landowners..."
Before, Barron and his family did not have much experience in real estate development, which was what he lacked at this time.
According to Viscount Bute, based on business analysis, the greatest economic benefit in the real estate transformation in King's Cross is the construction of office buildings for rent or sale, followed by high-end residential apartments, and the rest are shops and other commercial facilities.
But the problem is that neither the government nor the residents' groups in the area will allow them to build too many office buildings and high-end residences. These must be controlled within a certain proportion, and a considerable number of low-rent housing and other security housing must be provided.
The question is, if these landowners act on their own, then for economic benefits, they will definitely be willing to build office buildings and high-end residential buildings. Who will be willing to build low-rent housing?
If everyone rushes to pursue economic benefits, the final transformation plan will definitely not be passed.
Therefore, the most acceptable way is to unite all the landowners - at least most of them - and distribute the transformation of these lands through shares.
People will not argue about which building to build on which piece of land. Everyone will have a unified plan and the final profits will be distributed according to the initial shares, and everyone will have no disagreement.
As for the landowners who are unwilling to join in?
That's easy to deal with. There's no need to force them. After leading the construction of this transformation plan, which plots of land will have greater appreciation potential due to planning, and which plots of land will be built near low-rent housing, thus not having the conditions to build high-end office areas and high-end residences...
These can all be adjusted by the joint venture.