Chapter 392 Listing Plan
"Our renewal project in the King's Cross area has reached considerable progress, and more than one-third of the construction has started..."
Earl Bute lit the cigar, enjoying the smell, and said to Barron:
"And we think your previous proposal is also reasonable. Indeed, London's real estate market will continue to improve. If we rent out those properties, we can have stable and sustained income."
"But the problem is that a considerable part of the project funds are financed from banks, which has financing costs. If the funds cannot be rolled over to carry out the King's Cross renewal project, then as the number of projects started increases, it will be easy to There will be liquidity problems.”
What Earl Bute said is not unreasonable.
Prior to this, Barron did say that in the King's Cross urban renewal plan led by Argent Real Estate Group, the residential areas and office buildings they built, especially the office buildings, could be built by Argent Real Estate Group. Own properties by yourself, mainly in the form of rental.
The reason is that they are optimistic about the future of the British real estate industry, especially the current office buildings in London, which have a huge gap. Once completed, they will not have to worry about renting. This is a very stable source of income, and at the same time, they can earn through Properties held are waiting to increase in value.
After investigation and research, Argent Real Estate Group also recognized Barron’s suggestion.
Therefore, so far, apart from the high-end apartment King's Mansion converted from the previous gas tank "triplets", only two office buildings have been sold by Argent Real Estate Group in the King's Cross area - all Both were sold to DS Asset Management, namely the King Cavendish Building and the O2 Tower.
“So you’re hoping to raise money by taking your company public?”
Facing Barron's question, Earl Bute shook his head slightly and said:
"Not only that, in addition to issuing some new shares to raise funds when going public, some of our previous shareholders also have the idea of selling their stocks to cash out..."
The main reason why the King's Cross urban renewal project can be led by Argent Real Estate Group is that Argent Real Estate Group has the support of the vast majority of land holders in this renewal area.
In addition to the real estate held by the Bute family and their "allies", as well as the real estate on Barron's side, it also includes organizations such as the Coal and Grain Merchants Guild and the Goldsmiths Guild. Based on the real estate they hold, In addition, Barclays Bank and the Real Estate Dealers Association also invested in shares, holding a considerable share.
If Argent Real Estate Group chooses to carry out the King's Cross renewal plan project in phases, after each phase of construction is completed, the property will be sold, the funds will be withdrawn, and the next round of construction will continue... then these shareholders will also receive Quite a pink gain.
However, if most of the office buildings are held by themselves and rented out, a relatively large amount of funds will be occupied in the short term. Some shareholders may not be willing to hold shares that are difficult to obtain returns for such a long time. Therefore, Argent Real Estate Group If they go public, they will have more choices. In addition to selling the shares in the secondary market, the company's market value will be more certain after the listing, and the value of these shares will be more easily recognized by banks, so they can obtain loans through mortgages. .
This is what Earl Bute said next:
"After Argent Real Estate Group goes public, we will not be limited to issuing new shares for financing. We will have more options to choose from. Whether it is borrowing from banks or issuing corporate bonds, listed companies will have an advantage over private companies."
"That's not bad, I agree to do it."
Although Barron does not mind continuing to inject capital into Argent Real Estate Group, or purchasing the shares of other shareholders, what needs to be considered is whether his actions will cause unnecessary thoughts to the Bute family, which currently holds the controlling stake. .
If he intends to make the real estate industry one of his main businesses, he doesn't mind doing so and slowly takes control of the Argent Real Estate Group into his own hands. But in fact, he doesn't have much regard for it. If you are interested, you only need to invest in these real estate companies and hold shares in them. There is no need to distract your energy in their operations. Therefore, it is understandable for Argent Real Estate Group to optimize its financial situation through listing.
DS Capital currently holds 31% of the shares of Argent Real Estate Group, and is also one of the major shareholders, second only to the shareholding of the Bute family. Therefore, things like IPO must be communicated with him.
Anyway, Barron himself has no ambitions for Argent Real Estate Group, and listing it will be beneficial to him.
There will also be better valuations, at least in terms of getting the loan through Mortgage Argent Property Group.
"Another point is that our current projects in the King's Cross Urban Renewal Plan have reached a stage of stable advancement. We just need to proceed according to the plan. As for Argent Real Estate Group, we also hope to continue to seek other projects. …”
Earl Bute suddenly thought of something and said to Barron:
"I noticed that Caesars Foundation seems to be making some moves in Shoreditch in the East End. The situation there used to be similar to that of King's Cross. Now it seems that many art studios are concentrated in Shoreditch. Do you have any idea about that place? Any ideas?"
Barron knew that what Ian Butt was talking about was the Digital Future Building built in Shoreditch by Digital Future Company, a subsidiary of Caesars Fund. At that time, a construction company affiliated with Argent Real Estate Group was also hired to carry out this project.
"I just think that the artistic atmosphere there is somewhat similar to the innovation of the Internet industry, and the key is that it is very close to the city center and the land price is low... Well, it can be said that it was the first attempt, and the subsequent progress is also It needs to be judged based on the development of Internet technology in London. At present, there is no time to actively carry out large-scale promotion."
Earl Bute nodded after hearing this. He had indeed been concerned about the East End of London before and had analyzed the feasibility of what Barron said. He also did not think that there was currently any development there similar to King's Cross. possibility of large-scale urban renewal plans.
You must know that the urban renewal plan of King's Cross has not only received great financial support from the Kent District, but also the London City Government. It is known as the largest urban renewal plan in the core area of London in the past 150 years. It can also be seen from here , this kind of project does not appear randomly.
And no matter which country you are in, as a real estate developer, your relationship with the government is very important. There is no need for Argent Real Estate Group to engage in real estate development in the name of technological development for short-term interests - just like a so-called "Superman" does the same thing as PCCW...
If you do this once, you may get good benefits, but in the end, even if you get rid of the mess, you won't get any good opportunities in the future.
Therefore, after hearing Barron say that it was not a good time to advance the Eastern District renewal plan yet, Earl Butt also let go of the topic and said:
"Currently, I am also considering opening up new markets. Australia, India or Greater China are all under evaluation."
