Chapter 524: The Purpose of the Meeting

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After a simple greeting, Cheng Tinghua and the others accompanied Guo Shouyun into the villa. Everyone sat down, and Guo Shouyun, who was faintly dominant, didn't want the atmosphere to be too embarrassing, so he took the initiative to speak.

"Is today's dinner very rich?"

"It's rare to have a distinguished guest like you, of course we have to be well prepared. Cheng Tinghua said with a smile.

"Looks like I can let go of my belly tonight and have a good meal. ”

"It's for the best. … Let's start eating and talking!"

"Isn't there anyone else coming from behind?"

"No, that's all we have. Everyone here today is my own people!"

Guo Shouyun smiled and nodded.

Cheng Tinghua, as the organizer of the banquet, raised his glass after pouring red wine for everyone.

"Cheers to our friends again, especially Bruce's visit!"

"Cheers!"

After a glass of wine, the initial unfamiliar atmosphere has also faded a little. After several people glanced at each other, Yao Qianqian spoke: "Bruce, we plan to list United Real Estate, what do you think?"

"Going public?"

"That's right!"

"Do you have any recent information on the company's operations?

At the beginning, I invested in United Real Estate, more to help them for the sake of everyone being Chinese. Therefore, even though he owns 14.8% of the original shares of United Properties, Guo Shouyun has only appointed a director in the name of the Kwok family trust to oversee the company's finances and operations. Except for looking at its quarterly and annual statements, and investing money to maintain its shareholding when shareholders plan to increase their shares, he has basically not participated in the operation of United Real Estate.

"Of course!"

Yao Qianqian nodded and looked at Cheng Tinghua, who is the official CEO of United Real Estate. Of all the people present, he is the most familiar with the operational data of United Properties.

After hearing Guo Shouyun's question, Cheng Tinghua got up and brought over the computer prepared in advance. After finding the company's operational aspects, especially the recent financial information, he put it in front of Guo Shouyun.

As of May 2003, United Real Estate had total assets of $437 million and liabilities of $112 million. Two-quarter operating income of $85.7 million, non-operating income of $12.05 million, net profit of $17.25 million! There are currently 21 plots of land under development and to be developed, with a total area of 57,600 square feet.... ”

Looking at the information in his hand, Guo Shouyun estimated in his heart that after four capital injections and more than three years of development, the scale of United Real Estate, which had a registered fund of 15 million US dollars, has increased by nearly 30 times.

"I didn't expect you to run United Real Estate so well. ”

"Speaking of which, thank you very much, if it weren't for the handsome return from the Thunder, we wouldn't have been able to continuously inject capital into the company. United Real Estate's asset management income is unlikely to be so lucrative. Cheng Tinghua said.

From the very beginning, Cheng Tinghua and they were Thunder's customers, so Guo Shouyun operated several times, and they also received rich returns. Later, they simply took part of the cash flow of United Real Estate and put it in. These revenues have provided rich financial support for the development of United Real Estate.

Guo Shouyun nodded, "Since United Real Estate is not short of funds, what is the purpose of your listing?"

Qin Xiao handed over another piece of information.

"This is Taylor Properties, you can take a look. ”

After a quick glance, Guo Shouyun understood.

"You're going to buy it?"

"Hmm... Now that the U.S. real estate industry is in its infancy, we intend to expand the scale of United Real Estate as much as possible before the real upswing comes. ”

"So you chose it?" Guo Shouyun raised the information in his hand.

Taylor Properties owns 32 parcels in the East San Francisco Bay Area such as Alameda County and Menlo Park, which is not the core of Silicon Valley like Santa Clara and Palo Alto. However, with the development of Internet enterprises, commercial and residential real estate has great potential. And, now that United Properties' business is focused around Los Angeles, the acquisition of Taylors Properties will allow us to expand into northern California. At the same time, it can also double the revenue of United Real Estate and buy the ranks of medium-sized real estate developers. Cheng Tinghua nodded and said his plan.

Guo Shouyun said, "Are you sure about acquiring this Taylor real estate? You must know that the current rise in American real estate is very obvious." As long as you are not stupid, you know that this industry is very profitable now. ”

"Thomas Taylor, the owner of Taylor Estate, is a shrewd businessman and entrepreneur, but also a crazy gambler. He has lost more than $130 million in Las Vegas in the past five years. Taylor's liquidity was largely hollowed out by him, and he owed huge debts in the banking industry. Now, apart from the fire sale, he has no other assets to pay off his debts. However, because of the rapid development of the real estate industry, we also have other competitors. Therefore, it needs to be more adequately protected in terms of funds, and the most reasonable way to go public at present. ”

"It's really good to raise money by going public. However, from the application to the roadshow, and then to the final listing, the whole process takes at least half a year. Half a year is too late for this acquisition. And now is not a good time to go public. ”

In Guo Shouyun's view, the most suitable time for United Real Estate to go public was in 2005 or 2006, when American real estate was at its peak, and it could gain more recognition in the market and get a higher price-earnings ratio. At the same time, he also has plenty of time to cash out the stock after it reaches the six-month lock-up period to maximize his profits before the subprime mortgage crisis.

Seeing the big from the small, not only United Real Estate, but most of his investments and enterprises plan to do so.

"We also know that the time to market is long and the timing is not too good. But going public is the only way we can raise a lot of money at the moment. ”

"Why not try bonds? Issuing asset-backed bonds or convertible bonds is less time-consuming. And it's also faster to get funded. ”

After a pause, Guo Shouyun's eyes quickly swept over them and then smiled, "Or, are you going to let me help?"

A trace of embarrassment flashed in Cheng Tinghua's eyes, they really planned to ask Guo Shouyun to help. With the strength of Phoenix, it is easy to provide them with sufficient acquisition funds. It's just that the relationship between everyone is not too close, and Guo Shouyun's current status is too high, and the gap between the strength of the two sides is too large, so they came up with an excuse to go public.

People who don't know much about the financial markets may really think they're going to go public. However, for professionals, it is better to raise funds through the bond market than to raise funds through the bond market. The latter has to pay a certain amount of interest, but it can get the convenience of time.

guessed the plans of Cheng Tinghua and the others, Guo Shouyun was not angry. After putting down the information on Taylor Real Estate in his hand, "How much money do you need?"

"$300 million!"

"Taylor's assets are 20% larger than United Properties, is $300 million enough?"

"Counting the company's own funds, it's enough. Moreover, Thomas Taylor is desperate to get his hands on the cash. The advantage of our all-cash payment is enough to get a certain price advantage. As the company's CEO, Qin Xiao hurriedly said.

Guo Shouyun nodded, "As a shareholder of the company, I should really help with the acquisition of Taylor Real Estate." However, there is a saying that 'brothers settle accounts', and I can come forward to ask Phoenix to buy the bonds issued by United Real Estate, but I will not receive less interest. ”

We also don't want a situation where there is no separation between public and private and disrupt the normal operation of United Real Estate. Cheng Tinghua said.

"That's good. … You can go to the Los Angeles branch of Phoenix to talk about the specific things, and I will explain them in advance. ”

"Thank you so much, Bruce. ”

"No, I'm also a shareholder of the company. Guo Shouyun waved his hand, "That's right, although there is no need to list this time." But going public is indeed the best choice for companies that want to raise capital and grow rapidly. So, now it's time to have a good discussion. ”

"Our original plan was to acquire Taylor Properties and integrate it for a year before preparing to go public. Approximate time is at the end of 2004. Qin Xiao said.

"The end of 2004 is a good choice, but I hope you can postpone it by another year. ”

"In 2005?"

"Not bad. Now the U.S. real estate market has just appeared as a precursor to the outbreak, according to the previous law, there will be an outbreak period of about three years, 05 years in the middle of the year, although not the peak, but the house price is definitely rising rapidly, at this time listed, investment institutions will be more recognized by the United Real Estate stocks, and at the same time you can get a good price-earnings ratio. Whether it is for the company or for everyone here, it is the best choice. ”

Cheng Tinghua and Qin Xiao exchanged glances, and they were a little unsure about the outbreak period of Guo Shouyun's real estate industry for about three years. Because the past few U.S. real estate rally cycles have not reflected this pattern.

But even so, Guo Shouyun's outstanding record in financial investment is more convincing than any words. So, even if they were suspicious, they did not object.

After chatting about mergers and acquisitions, Guo Shouyun obviously felt that Cheng Tinghua and the others looked a little more relaxed. Obviously, inviting themselves tonight, 'helping' is their main purpose.

Of course, Guo Shouyun did not have much rejection in his heart. Now he has already tried the taste of 'unbearable cold in high places'. There are a few relatives, and most of the 'friends' around him are because of interests, not friendship.

However, this is the normal organization of society. As the saying goes: 'No one asks about the poor in the downtown area, but the rich have distant relatives in the mountains.' ’

Moreover, sometimes the union of interests is often stronger than the so-called friendship!