America: My Time

Chapter 154 Shopping Mall
Chapter 154 Shopping Mall

“Our First Commercial Bank is also willing to accept this offer and can provide the lowest possible interest rate. We trust Mr. John’s abilities!”

Soon, a representative from the First Industrial Bank stepped forward to express their opinion, and after a brief exchange, the First Industrial Bank decided to follow suit.

They had initially had concerns about Universal Pictures' loan, but ultimately they found their worries to be unnecessary. After a brief period of adjustment, Universal Pictures was developing rapidly. Not to mention anything else, the Universal Studios and Universal Sea World in Japan alone were enough to cause Universal's market value to skyrocket.

“We at Mitsubishi Bank are also willing to accept this offer and can provide the lowest possible interest rate!” After Dai-ichi Kangyo Bank made its statement, the Mitsubishi Bank representative also made a choice. However, not all banks had the same confidence. The risk of this investment was too great, and they all remained silent, clearly indicating that they had given up on this loan cooperation.

Although John possessed remarkable talent, his young age led the bank representatives and tycoons to adopt a wait-and-see approach, unwilling to take excessive risks. Besides, they hadn't come away empty-handed; they had already profited from Universal Studios and Universal Sea World, so there was no need for further adventure. In the bankers' view, John's debts were excessive. They might have accepted it with sufficient collateral, but Cultural Oriental lacked adequate collateral, forcing them to back down.

"I originally thought that the expansion plan of Cultural Oriental would be hindered this time and that changes would be needed, and some parts would be appropriately reduced. I didn't expect to get everyone's approval. This is really not easy!" John couldn't help but sigh when all the other bankers had left and only the people from Mitsui Bank, Mitsubishi Bank and Dai-Ichi Kangyo Bank remained.

"Hahaha! Mr. John, they don't understand you and don't believe in your abilities, but Mitsui Bank is different. We believe in your abilities. Since you dared to propose this plan, you must have your own reasons and insights. You can entrust the 7-Eleven loan to Mitsui Bank, which shows you are considerate. Naturally, we should also repay you!"

Repayment? That's a joke. Banks have no sentimentality. The reason the Mitsui Bank representative said that was simply because they believed John had sufficient repayment ability. They believed that Mandarin Oriental would definitely have sufficient repayment ability under John's plan, otherwise such a plan would not exist!

"Although Mitsubishi has not had much cooperation with Mr. John, we believe in your abilities and are willing to take the risk. No investment is without risk. Those who dare not take risks lack confidence, while Mitsubishi has enough confidence and believes in Mr. John's strength!"

John was somewhat surprised by Mitsubishi Bank's choice, as he didn't have much cooperation with them. If there was any, it was only minor collaboration in the past. But this time, the bank's confidence in his expansion plans at the Mandarin Oriental Hotel and their willingness to provide him with a loan was truly unexpected.

John had not initially considered the expansion of the Mandarin Oriental Hotel as a must-have target. Now, everything seemed to have exceeded his expectations. The Bank of Japan still trusted him, as did Mitsui Bank and Dai-Ichi Kangyo Bank. As for Mitsubishi Bank, it was an unexpected development. He had originally thought he would not have the opportunity to cooperate with them, but now he could increase his investment in Japan ahead of schedule.

"Since you all agree with my plan, I will no longer conceal anything. The expansion of the Mandarin Oriental Hotel has actually been planned for some time, just like Universal Studios, and we have made ample preparations. It has only been shelved due to funding issues. You may not care too much about the hotel, although it requires funds. Any bank can provide the Mandarin Oriental Hotel with sufficient funds. However, if we were to fully launch the expansion of the Mandarin Oriental Group, it would be a completely different story. It requires a huge amount of funds, which cannot be done by Mandarin Oriental alone. Therefore, I have reserved some details in this plan, which is also a test."

"Oh, I wonder what Mr. John's full plan is? Since it can be compared to Universal Studios, this plan must be quite remarkable!"

"I don't know what everyone thinks about the current development of real estate in Japan, but in my opinion, there is great potential in Japanese real estate. As long as you choose the right direction, you will definitely reap considerable profits. For example, Universal Studios and Universal Sea World can be considered as real estate investments. In fact, we can invest in real estate not only in theme parks, but also in other areas. Hotels are good, but the profit is so-so. However, urban complexes and commercial buildings are completely different."

However, urban complexes require huge investments and are heavily tied to a city's development, making them too risky for us. Commercial buildings, on the other hand, are entirely different, and shopping malls are my target. Although the oil crisis severely impacted shopping malls, they are recovering with the economic recovery. Given Tokyo's current development, building a luxury shopping mall would undoubtedly yield enormous returns.

This time, John wanted to hijack the Mori Building in Roppongi and jointly build a luxury commercial building with Mitsui, Mitsubishi, and Dai-Ichi Kangyo Bank. It would be a commercial complex integrating offices, hotels, restaurants, cinemas, shopping, and tourism. However, he did not completely trust these Japanese bankers, so he did not fully reveal his ideas.

"A shopping mall? Mr. John wants to build a shopping mall, and the Mandarin Oriental Hotel is just one part of it!" The Mitsui Bank representative quickly understood John's plan. The hotel was never the Mandarin Oriental Group's goal; the shopping mall was. The so-called hotel was merely a component! "That's right, exactly. The hotel is just one part of the shopping mall. You could say it's a massive plan. Of course, if you all can't accept it, we can certainly make appropriate changes!" John didn't deny it, nodding in agreement.

"It seems Mr. John's expansion is a massive project, a commercial complex. Such a building takes a long time to complete and requires a huge amount of capital, just like Universal Studios and Universal SeaWorld. Doesn't Mr. John worry about the possibility of failure? The investment required for such a commercial complex is staggering!"

"Of course I had such concerns, but I believe that the overall environment in Japan will not disappoint me. Although my plan is huge and amazing, it is insignificant to the whole of Tokyo and Japan. No matter how huge it is, it is just a building!"

Building a skyscraper sounds simple, but it wasn't so for Mitsui, Mitsubishi, and Dai-Ichi Kangyo Bank. Building such a commercial building in Tokyo was no easy task, and the loan was not simple either.

“Mr. John, could we know about your expansion plans for the Cultural Oriental Group? Of course, we don’t need the complete plan, we just need to know your general plan and the direction of expansion. This is no small matter, and the funds required are staggering. We need to know the details!”

“Yes, I can tell you definitively that the Mandarin Oriental Group’s expansion plan in Japan is to build a luxury shopping mall in Roppongi, and like Universal Studios, the design is already in place!” John paused here, then continued, “Of course, if you have any concerns, it’s not impossible to change the plan. However, this would shift the focus to New York, and the hotel plans would need to be rearranged. Everything is up to your choice!”

"So, Mr. John's overall plan is real estate, more precisely commercial real estate, or commercial complexes, with the hotel just an add-on? If Tokyo isn't feasible, then he'll choose New York?"

"That's right, that's how it is. If you are not willing to support the Mandarin Oriental Group's expansion plan in Tokyo, I can only change it slightly and set my sights on New York. Investing in New York can be done with leverage, which will provide you with sufficient collateral!"

"Mr. John is so optimistic about Japanese real estate that he abandoned his plans for New York and chose Tokyo instead?"

"No, it's not that I'm bullish on Japanese real estate, but rather the overall environment. Besides, I want to use the Tokyo project as a small test to see if my views are correct. If the Tokyo shopping malls successfully meet my expectations, they will naturally continue to expand. Shopping malls aren't just suitable for Tokyo, or even Japan!"

When John finished speaking, the bank representatives and business tycoons present understood his intentions. Although it was indeed risky for them, they felt the plan was feasible. Building a commercial complex and a skyscraper in Tokyo wasn't particularly stressful overall, because Tokyo's real estate market was steadily rising. Even if John's plan was ambitious, it would be enough to complete construction in a little over a year. Even if the shopping center wasn't ideal, the skyscraper could serve as collateral.

"Mitsui Bank is fine; they can cover all the loans!"

"One shouldn't be too greedy. Mitsui has already secured the loan for 7-Eleven, so let our Dai-Ichi Kangyo Bank take on this loan. You can't let me leave empty-handed!"

Before the Mitsui Bank representative could even refute, the Mitsubishi Bank representative spoke up, saying, "Our Mitsubishi Bank is also willing to take on this loan. We can't let Dai-Ichi Kangyo Bank reap all the benefits!"

When the representative of Mitsubishi Bank jumped out to object, the representative of Dai-Ichi Kangyo Bank couldn't help but sigh inwardly. Although he was the organizer, he couldn't monopolize all the benefits. If Mitsubishi Bank was unwilling, it would be a big problem!

(End of this chapter)