Chapter 467: HSBC Holdings Tower
"Hey, US Treasury bonds can only remain strong thanks to the nation's power," Charles said as he put down the phone.
Lily Ying mentioned on the phone that the batch of US Treasury bonds had been sold, totaling $11 billion in cash. Charles had previously estimated it would only be $10.5 billion!
Currently, since the value of the US dollar was high, they exchanged $1.5 billion into British Pounds and another $1.5 billion into Euros.
Charles had Lily Ying settle a PS1 billion debt, leaving Capet Capital with a PS500 million cash flow in the UK!
On January 20th, Obama took the oath at the White House in Washington, D.C., becoming the 44th President of the United States.
Charles watched the inauguration on TV from his estate in Hampstead but didn't pay much attention. His mother, Evelyn, however, attended the inauguration in Washington.
In the evening, Charles was on the phone with Evelyn, who was in the US. "You mean you want to increase investments in London?"
"Yes, the UK real estate market has dropped a lot, especially in central London. I plan to expand our real estate business there," Charles explained.
"Alright, I just got back to Los Angeles from D.C. Obama even asked about you!"
"I understand. I'll visit the President when I return," Charles said, changing the subject. "What about the company I mentioned earlier? Any progress? We need to strengthen our sports agency business quickly."
Charles avoided discussing important topics on the phone, especially political ones. He was cautious, aware of the PRISM surveillance program.
"Don't worry, I've been in touch with Silver Lake Partners and Sequoia Capital. They will support the acquisition," Evelyn assured him. "However, the timing for the merger isn't perfect yet, so it won't happen quickly."
Charles scoffed. "It shouldn't take that long to integrate resources, even for a smaller company. We need to capitalize on the rapid growth of sports entertainment and complete the setup soon!"
Evelyn remained silent for a moment. "I understand. Don't worry."
After hanging up, Charles picked up the documents in front of him, which detailed the current HSBC Holdings Headquarters building at Canary Wharf in London.
The London HSBC Holdings building, designed by the renowned British architect firm Foster + Partners, began construction in January 1999, was completed in 2002, and officially opened in 2003 as the global headquarters for HSBC Holdings.
The building has 45 floors, stands 210 meters tall, with a total floor area of 1.1 million square feet, approximately 102,193 square meters, and can accommodate 8,500 employees.
In 2007, during the peak, HSBC Holdings sold the building to the Spanish real estate company Metrovacesa for a substantial amount, with an agreement allowing HSBC to lease it back for 20 years, with an option to renew for another five years.
However, the financial crisis last year prevented Metrovacesa from repaying a bridging loan taken from HSBC Holdings, forcing them to re-negotiate. In November, they sold the building back to HSBC at a lower price.
HSBC suffered significant losses in the US due to the subprime mortgage crisis and the financial tsunami. Despite their strong earnings in Asia, they still hadn't accepted any capital injections from the Bank of England and planned to liquidate property to raise funds. The London HSBC Tower, New York HSBC Tower, and Paris HSBC Tower were all on the market.
Compared to New York and Paris, Charles preferred the HSBC Headquarters in London.
Later, Charles called Jack Swank, the head of Capet Real Estate Group.
"Jack, the London HSBC Tower is a worthwhile investment. Capet Real Estate Group should own an iconic building in London!"
"Charles, I heard the Korean National Pension Service is also interested in the HSBC Tower," Jack Swank reminded him over the phone. "HSBC Holdings will likely sell the London HSBC Tower through a bidding process!"
"The Korean National Pension Service?" Charles was aware. The NPS is the largest investment company in Korea, operating with the national pension funds in the international financial market.
NPS is the world's third-largest pension fund. It primarily invests in Korean stocks and bonds, with 70% of its funds in the stock market and 23% in bonds. NPS's influence on Korean finance is significant, holding stock in 47 of Korea's top 100 companies and more than 10% in numerous conglomerates like Samsung, LG, Lotte, Hyundai, SK, and Hanjin.
Essentially, NPS is the largest single shareholder of these conglomerates, even if the controlling stake belongs to American consortia and is managed by Korean family businesses.
"No matter, make contact with HSBC," Charles wasn't worried, with plenty of cash on hand.
"Got it," Jack Swank replied without any objections.
"Of course, we can also consider collaborating with the NPS to jointly acquire the London HSBC Tower," Charles added.
"Understood!" Jack Swank grasped Charles's plan. They wrapped up the call with a few more words.
As of now, the London HSBC Tower was worth at least PS700-800 million. Charles could afford it alone.
However, it wasn't necessary. They would likely use part cash and part loan, continuing to lease it back to HSBC Holdings as usual, a standard operation for large groups, satisfying both parties.
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