Reborn Action Star: Starting in Hollywood

Chapter 161 Starting anew
Ten billion US dollars? This amount is really too large.

"Where do we get so much money? This project doesn't really need that much money, right?" Lin Yuan asked.

"Investing in just one film and television city project is really too small. I think commercial real estate in mainland China is not yet booming. I might as well raise more funds, acquire some prime land, and build a CBD.

This will also complete the construction of the cinema chain." Mr. Eisen replied.

Hearing his words, Lin Yuan immediately realized that this would be a huge leap forward.

At this time, there were very few CBDs in China represented by Wanda City in later generations. Acquiring some land in prime locations now could be considered as building a very high moat.

Commercial real estate like CBD is relatively cleaner and can also solve the problem of building cinemas. Lin Yuan thinks this is really feasible.

If we can really raise 100 billion US dollars, it would be more than 800 billion RMB according to the current exchange rate.

Such a huge sum of money is enough to support the construction of a film and television city and to acquire land in important cities across the country.

In the future, a number of CBDs will be built based on the land in these prime locations. The lead brought by this first-mover advantage will be difficult to be surpassed by latecomers.

Lin Yuan once again deeply understood the power that Mr. Eisen talked about.

What matters most is not how many resources you have, but how many resources you can control.

"Then the final question is, where does so much money come from?" Lin Yuan asked.

"With a good project, funding is never a problem," Mr. Eisen replied. "We can leverage $10 billion in total funding with $2 billion of our own capital. It's not difficult. Furthermore, the funds can be injected in installments."

"Are you planning to involve the investment fund you control as well?"

Lin Yuan immediately understood Mr. Eisen's idea.

First, use $400 million of its own funds to build the framework, and then accept investment from the fund controlled by Mr. Eisen.

Then, we can leverage more funds. The sources of funds can be various: for example, profits from subsequent film projects of Lin Yuan Studio, or low-interest loans provided by Nanyue City...

As for Mr. Eisen's investment in this project with the fund he actually controls, it may involve internal questioning within the investment committee and explanation issues with shareholders. Lin Yuan believes that he has a way to handle it.

For example, you can sign a bet repurchase agreement to repurchase the equity of this investment at an agreed price at a certain point in time.

This is equivalent to ensuring that shareholders will make a profit without loss through an agreement.

If Lin Yuan and his team can make a bigger project, they can earn more.

Even if the project does not go smoothly, investors can still get a guaranteed return, which generally starts at 12% annualized.

In fact, it is a debt in name only. On the surface, it seems to be an equity investment, but once the bet conditions are not met, it becomes a debt that must be paid with principal and interest.

The advantage is that once the repurchase bet agreement is agreed upon, Lin Yuan can also buy back the equity at the price specified in the agreement.

Although there are risks involved, if the project suffers losses, Lin Yuan and Mr. Eisen will personally bear enormous financial pressure. After all, the bet agreement is signed with an individual.

But will there really be losses? Lin Yuan is not worried about the prospects of this project at all.

In fact, Lin Yuan is also willing to use this method to ensure that his equity will not be diluted too much.

Instead of distributing these shares to investment bank capital, he would rather transfer more shares to Nanyue City, which is the thigh he needs to tie up to gain a foothold in the country.

"Yes, we estimate the funds will arrive over two to three years, so we're not under too much pressure. We'll even invest more next year," Mr. Eisen replied. And given Lin Yuan's ability to generate such a lucrative income through filmmaking, who can say for sure how much money he'll have at his disposal next year?

I was just complaining about spending more and more money before, but now it’s all gone in an instant.

This was the first time in nearly two years that Lin Yuan felt financially strapped, but this also made him more motivated to make money.

As soon as we return to New York, we will start preparing for the two new films!
Mr. Eisen and Lin Yuan had reached an agreement, so they came out of the communication room.

Mr. Li immediately asked with a smile, "How did the discussion go?"

At this moment, Mr. Li would never have imagined that a sharp blade had begun to be sharpened against him. In the future, it would be as cruel as a battlefield, and a life-and-death competition had already been brewing.

Lin Yuan looked at the smiling Mr. Li and thought about how the two of them had discussed a plan to kill someone else on his territory. It was a bit exciting to think about it.

Mr. Eisen replied vaguely, "We need to go back and discuss this further and get more opinions from shareholders."

After hearing Mr. Eisen's reply, Mr. Li immediately understood the hidden meaning.

This kind of answer means rejection, but it is just to save face for both parties and to avoid saying anything final.

When you confess your love to a girl, she replies: "You are a good person, but I don't want to be in a relationship right now."

If you really believe it, it won't be long before you see her walking hand in hand with her new boyfriend on campus and you'll feel like a clown.

Mr. Li smiled and replied, "It's okay. You two can discuss it more. Even if this doesn't work out, it can only be said that fate hasn't arrived yet. Even if the deal doesn't go through, there's still righteousness."

People like Mr. Li are very good at socializing and building relationships with others.

Once he is sure that the investment intention cannot be achieved, he is also happy to make friends with the two people from a friendship perspective. After all, who knows when it may be useful in the future?

But he didn't know it, because at this moment the two sides were already in a potential competitive relationship.

……

……

(This paragraph is abbreviated for well-known reasons. Let me explain what happened.)
After the plan to acquire shares in Hengdian was thwarted, Mr. Aisen and Lin Yuan went south and began to contact Nanyue City.

The docking channels are of course coordinated through the foreign affairs department. With Mr. Eisen's connections and status in North America, it is quite easy for him to call on such resources.

Under the coordination of the foreign affairs department, the negotiations with Nanyue City soon alarmed Guangdong Province.

After all, such a huge investment would be worth making headlines in the news by 2024.

Not to mention that it happened in 2002 when the country was still facing a severe shortage of capital.

In the end, Mr. Eisen finalized the agreement and obtained a series of preferential policies including free land allocation, interest-free loans, tax exemptions, etc.

In return, Mr. Eisen also gave up 20% of the equity of the newly established platform company, forming a mixed-ownership equity framework.

The next step is for Mr. Eisen to rush back to New York, where he will deal with financial issues and convince everyone at the investment decision-making meeting.

However, Lin Yuan did not return to New York with Mr. Eisen. He bought a plane ticket to Jinling.

(End of this chapter)