Chapter 59 Still short of money

Yes, "Downton Abbey" became popular. With the blessing of many factors, one week after the novel was published, the sales volume of "The Independent" increased from 150,000 copies to 170,000 copies, and continues to increase...

Of course, this lasting effect will take longer to be seen.

After a "long" wait, DS Capital finally completed its short position on AirGate stock.

At the beginning, they took out 5 million pounds, shorted the stock with a 10% margin, and borrowed approximately 1.83 million shares of AirGate shares through Barclays Bank.

The average price of these stocks sold by DS Capital was around US$37.7; the average price of the 1.83 million shares of AirGate ultimately purchased was only US$1.54.

In the end, DS Capital earned approximately US$54 million, equivalent to approximately 36 million pounds, after paying capital gains tax and related securities lending fees from this short-selling operation.

The 5 million pounds as a deposit will be returned to the original capital pool and continue to implement the previously set investment strategy.

After obtaining the funds, Barron completed the acquisition of the three plots of land in King's Cross. After transferring the funds to DS Capital Management, Amber was responsible for completing the land transfer process.

In addition, the Victorian mansion in Chelsea also belongs to DS Capital Management after spending 17 million pounds.

At the same time, Yulia was responsible for organizing the original four hotels of the family into the Cavendish Hotel Group, with Rob Pike, the original head of the family's hotel business, serving as the general manager of the hotel group.

The Cavendish Hotel Group will rent a mansion in Chelsea owned by DS Asset Management and use its own assets to borrow 12 million pounds from the bank to renovate and decorate the Victorian mansion and build it into a luxury hotel. Hotel - Devonhill (Chelsea) Hotel.

It is expected that the renovation and renovation of this mansion into a luxury hotel will be completed within three months.

At that time, the employees of the Cavendish Hotel in Soho will select outstanding candidates and add more people. After training, they will enter here and become employees of the first Devonshire brand luxury hotel.

After all, after the renovation, the house itself will have about thirty rooms - including a royal suite and a ducal suite, which are similar in size to the original Cavendish Hotel in London.

If the royal suites offered by other luxury hotels are a bit unrealistic, then the royal suites at the Devonshire Hotel are blameless - after all, not only did Queen Victoria stay at their family manor, but she was also honored as a royal guest. Queen Mary was imprisoned for a long time.

Not directly naming it "Queen Mary Suite" is already very flattering to the royal family...

After spending these funds, DS Capital's account went from 36 million pounds to less than 13 million pounds.

According to the information obtained from the butler Sean, after hiring a professional agency to estimate the overall renovation and modernization project of Chatsworth Manor, this project is expected to cost 20 million pounds to complete...

This plan includes transforming some of the manor rooms into hotels for commercial operations - Chatsworth Manor has more than 100 rooms in total, and about 30 of them will be open to the public after the transformation, including 10 suites. It will be let to Devonshire Hotels and become rooms at the new Devonshire Chatsworth Manor Hotel.

In the near future, Barron plans to form Devonshire Cultural Tourism Group. At this time, the Chatsworth Manor owned by the family and two other castles and manors in Scotland and Ireland will be included in Devonshire. Among the cultural tourism groups.

…

"Your Highness the Duke, we have reached an agreement with Barclays Bank to use the assets held by DS Asset Management Company for mortgage loans. The other party can grant us a loan of 20 million pounds."

In DS Capital's office, Amber Sheehan reports to Barron on the fundraising status.

There are still many places to use money. After Barron spent money to buy a land in King's Cross and a mansion in Chelsea, he back-handedly mortgaged it to the bank for a loan.

Calculated in this way, the funds spent on these real estates are only more than three million pounds and part of the interest on bank loans.

Don't think that using a property purchased for more than 23 million pounds and lending 20 million pounds at this time is too exaggerated.

In fact, as a private bank, Barclays Bank can be more "flexible" for the sake of profit. Moreover, DS Capital's securities investment account itself is opened at Barclays Bank, and the other party is not worried that Barron will not be able to repay the loan. At the critical moment , they will also "flexibly respond".

Moreover, at this time, real estate mortgage loans have begun to recover after experiencing a slight decline since 2000. Against this background, banks will become bolder in order to obtain more profits.

It is not an exaggeration now. In a few years, not to mention the boom in real estate loans in the United States, even in England, the mortgage ratios offered by many banks will already be as high as 125-130%.

In other words, if a property worth 1 million pounds is mortgaged to a bank, and the other party can lend you more than 1.2 million pounds of funds, you will be asked whether you want a loan?

Without all this madness, how could the subprime mortgage crisis sweeping the world have come about? For the sake of profit, capitalists are always willing to sell the rope that hangs them.

As for DS Capital's debt-maintaining expansion method, it can be said that almost all capital is being used. In this way, risks can be controlled during the economic upturn.

But once the economy faces a crisis or downturn, it can easily lead to a chain collapse due to depletion of liquidity.

But Barron's biggest advantage is that he has experience in his previous life and can clearly see the general economic trend.

After all, due to the pressure of life, when funds are needed everywhere, Barron can only continue to look for financial investment opportunities to raise funds for the reorganization of his industry.

This time, his target is London Copper (LME Copper), a futures product of the London Futures Exchange (LME).

In the first half of last year, copper prices fell slowly from 1,191 pounds (per ton) in January to 1,121 pounds in May as the global economy fell into a downturn due to the bursting of the dot-com bubble and shrinking demand.

But after June, the price of copper in London began to decline at an accelerated pace, and the price of copper once fell below 1,100 pounds, the support level since 1999.

The disappointment in the market, coupled with the occurrence of the "911 Incident", made investors completely desperate, and the price of copper in London fell to 890 pounds in one fell swoop!

Until November, copper prices rebounded sharply from the lows of nearly 15 years, stimulated by large-scale global production cuts!

The subsequent rebound in the U.S. economy extended the rebound in copper prices in the first half of this year!

It can be said that at this time, the economy of the United States had a great impact on global copper prices, because at this time it was still the world's largest copper consumer.

But Barron knows that by the time mid-to-late July is approaching, the driving force behind the rise in London copper prices in the first half of the year will gradually fade away...

In the third quarter of this year, the U.S. economy will weaken again, market sentiment will be increasingly hit, and copper prices will fall sharply within a few days.

Within four weeks of the sharpest decline, the price of copper in London would fall directly from the previous high point of nearly 1,500 pounds to less than 1,000 pounds, a drop of nearly 50%! !

This is also his best opportunity in the near future!

After all, the leverage of London Copper can be as high as 20 times, and the market is very large. The daily transaction volume is in the billions and tens of billions, which is not comparable to the US stocks he previously operated, so it can also accommodate larger funds.

The data during the new book period is related to subsequent recommendations, so follow-up reading is very important. I beg you not to keep it all the time. If you feel that it is okay, read it every day to help increase follow-up reading. Thank you very much.