America: My Time

Chapter 155: Lure for gain
Chapter 155 Luring with Profit

In an instant, a crazy thought flashed through the mind of the First Commercial Bank representative, and he said, "Mr. John, we have absolutely no problem with the investment in Japan, but we don't know what your filing is. If the expansion in Japan is affected, what are your plans in New York? Can you tell us?"

As soon as the representative of Dai-Ichi Kangyo Bank finished speaking, the representatives of Mitsubishi and Mitsui Banks' eyes lit up. They both understood the Dai-Ichi Kangyo Bank representative's intention; it was indeed a good choice that could effectively resolve their current dispute!

"Actually, it's nothing. You all know a thing or two about New York. What's the first thing that comes to mind when you think of New York?"

"The Empire State Building, Mr. John, your backup plan is to acquire the Empire State Building?" In an instant, everyone present was shocked. This was too crazy. They never expected that John's backup plan would be so amazing, that it would involve the Empire State Building!
"Yes, it's the Empire State Building, but not entirely; there's also the Chrysler Building!"

"Mr. John, if you have sufficient funds, can your plan really be realized? Those are the Empire State Building and the Chrysler Building, iconic buildings of New York!" The Mitsubishi Bank representative was somewhat worried, feeling that it was a bit unreliable!

"The acquisition is not a problem. I have a pretty good relationship with Morgan. With Morgan involved, everything is fine. Given enough time, it can definitely be done. If we choose the backup plan, I believe there won't be any problems with a leveraged buyout, right?"

"No problem. Whether it's the Empire State Building or the Chrysler Building, we won't have any issues. Mr. John, since you have such a plan, why not implement it together? Our Mitsubishi Bank is willing to assume the loan for the New York plan. As long as the acquisition is successful, funding is not a problem, and interest rates are even less of a problem!"

Upon hearing this, John sighed and said, "I've thought about doing that too, but it won't work. Mandarin Oriental can't afford such a burden. The hotel needs to expand, and we need to build skyscrapers, plus the Empire State Building. Even with the lowest interest rates, Mandarin Oriental can't afford it."

For the Japanese banks, funding isn't the problem, but the pressure of the loan to Mandarin Oriental is a major issue. Repaying such a massive loan, even at the lowest interest rate, is unsustainable; the Mandarin Oriental Group isn't yet on the right track. While his own expansion in New York is fully underway, it will take time to reap the rewards. His advertising plans also require adjustments and strategic planning. If he were to embark on acquisitions, it wouldn't just be the Empire State Building; the Chrysler Building is also in his plans, further increasing the pressure.

“Mr. John, we all recognize your creditworthiness. Since you have prepared a backup plan, you must have a way to deal with it. Moreover, repaying such a loan is not a big problem for you. If you feel that Mandarin Oriental cannot bear this pressure in a short period of time, we can postpone the repayment period. How long do you need?”

John was shocked to hear these words. Although he also wanted to accelerate the pace of expansion, the Mandarin Oriental Group's preparations were not yet complete, which required time. This was precisely what he lacked: time. Now that the Mitsubishi Bank representative had said such a thing, how could John not be shocked!

"I need six months to make adjustments to the Mandarin Oriental Group and renovate the properties. After six months, the Mandarin Oriental Group will have a certain repayment capacity, and I won't have to worry about debt affecting the company's development!"

As long as John completes the advertising plan, repaying the loan will not be a problem. Now that the buildings around Times Square in New York are all in his hands, with just some time and unified planning, the advertising investment can be completed, and naturally there will be huge advertising revenue! Times Square is his guarantee for the expansion of the Mandarin Oriental Group. Acquiring it during a real estate downturn, once the planning is completed, it will naturally turn into huge profits. The value of the entire Times Square is currently seriously underestimated!
“Our Mitsubishi Bank is willing to accept a six-month extension. However, Mr. John, I'm afraid you've misunderstood something. Acquisitions also take time. Perhaps by the time the acquisition is completed, you will have already finalized your plans for Mandarin Oriental!”

"No, the acquisition isn't a big problem. Six months is essential. Even after the plan is completed, it will take time to promote it. If Mitsubishi Bank can grant a repayment extension, the expansion plan in New York can proceed!"

As soon as John finished speaking, the Mitsubishi Bank representatives breathed a sigh of relief. Although this was a decision they made in a short time and hadn't gone through with the board, they had been given this authority before coming. "Mr. John, if I understand correctly, your expansion of the Mandarin Oriental Group focuses on iconic commercial complexes. Take New York as an example; you've chosen Tokyo, and you're determined to build iconic buildings there as well. Once successful, subsequent expansions will follow the same pattern. I wonder if we can maintain this kind of cooperation long-term?" The representative from Dai-Ichi Kangyo Bank was quite capable; he understood the Mandarin Oriental Group's development direction just from the previous discussion—his business acumen was excellent!

“That’s right. The Mandarin Oriental Group’s plan is to build a landmark building in the region. Once the plan in Japan is successful, they will naturally continue to expand. Of course, this cannot be separated from the help of banks. If Dai-Ichi Kangyo Bank is willing to continue to cooperate, I have no problem with that!”

If they could use the funds from the Bank of Japan to expand rapidly, that would be a fantastic opportunity. Moreover, borrowing US dollars from the Bank of Japan is currently the most cost-effective option. Since the First Industrial Bank is willing to continue the cooperation, how could John refuse?
"Very well, Dai-Ichi Kangyo Bank will provide full assistance regarding the Tokyo shopping mall matter!"

"I feel relieved to hear that. If possible, I hope to complete the construction and decoration of the shopping center within a year. If successful, our cooperation will continue!"

This year was John's test of Dai-Ichi Kangyo Bank. If Dai-Ichi Kangyo Bank, as a conglomerate, couldn't even do this much, there was no point in continuing the cooperation! Although he needed funds, Dai-Ichi Kangyo Bank wasn't the only bank in Japan that could provide them, which was why John made this request to save himself more time.

After concluding his discussions with Dai-Ichi Kangyo Bank and Mitsubishi Bank, Mitsui Bank began inquiring about John's expansion plans for the Southern Company. The Mitsui Bank representative believed the Southern Company would expand comprehensively across the United States, targeting North America. Unfortunately, he was wrong. When John proposed using Mitsui Bank's resources to acquire 7-Eleven in Japan, he was stunned, as were everyone present, who didn't understand John's motives.

While 7-Eleven in Japan is still doing alright, it's not all that great overall. After all, it's just a convenience store, and it's far from reaching the crazy scale of later generations. Ignoring the huge American market and instead wanting to acquire 7-Eleven in Japan is incomprehensible. It's putting the cart before the horse and is hard to accept. A genius shouldn't make such a basic mistake!

“Mr. John, I don’t understand your decision. Although 7-Eleven in Japan is doing well, its assets are just so-so, and it’s incomparable to Southland Corporation in the United States. Why would you give up the huge US market and choose to acquire 7-Eleven in Japan?”

"You're wrong, your thinking is completely wrong. I never intended to give up the US market; it's just that the US market needs adjustments. As for acquiring the Japanese 7-Eleven, it's because I want to take back the 7-Eleven brand and restructure it. Not only the Japanese 7-Eleven brand, but also the Taiwanese one, will be taken back. After that, Southern Company will form a global brand, a 7-Eleven convenience store brand completely controlled by Southern Company!"

John paused here, giving everyone time to think, and when he finished speaking, everyone present immediately understood his intention. Market capitalization—if Southern Company were to take back all 7-Eleven convenience stores and achieve global unification, it would be of immense significance to the brand, and once achieved, its market capitalization would inevitably skyrocket. Imagine how insane the market capitalization of a global brand would be if it went public. The profits from such a company continuing to expand are self-evident.

Just as everyone was fantasizing that Southern Company's market value would soar, John continued, "I have been cooperating with Mitsui Bank for some time now, and I hope that Mitsui Bank can lend me a hand this time. Moreover, I can assure you that as long as the interest rate is not a problem, all loans involved in Southern Company's expansion will be handled by Mitsui Bank. This is a global expansion, and in my plan, it will take at least two years to complete the layout in Asia and North America!"

The sheer scale of the profits—the enormous profits—immediately weighed on them, making the Mitsui Bank representatives and its executives breathe heavily. Meanwhile, Mitsubishi and Dai-Ichi Kangyo Bank were also burning with rage; the profits were simply too great for them to handle. The sheer amount of capital involved in the global expansion of a brand, especially a retail business like convenience stores, was unimaginable.

John's strategy for Japan was to entice them with profits. Faced with enormous gains, the Japanese banks would inevitably compromise. Mitsui Bank was just the beginning; John didn't believe Mitsui Bank would refuse his offer. Southern Company needed massive funds for expansion, and this opportunity allowed them to complete their overall layout in the shortest possible time. Oriental Culture Group needed even more funds, and would soon require even more, but they didn't want to reveal it yet; the plan was still kept secret.

(End of this chapter)