America: My Time

Chapter 514 Planning in advance
Chapter 514 Planning Ahead
Mandarin Oriental Group has too many real estate properties in Japan. If they wait until the peak to sell, they may not be able to get out unscathed. Therefore, John needs to act in advance and sell off his real estate properties in Japan little by little, especially the shopping malls, taking advantage of the booming Japanese economy to sell them off as a whole.

John's plan was to begin selling off assets in early 1989, clearing out most of the Mandarin Oriental Group's assets in Japan by the end of the year, keeping only resort hotels and one or two shopping malls in Tokyo. He would also give up all of the investment company's shares in Japan. He wouldn't make a penny for himself; he would only complete his escape before anyone else could.

Seeing John's calm expression, Akio Morita couldn't help but sigh. He didn't understand why John was being so cautious. Even if the Japanese real estate market was booming, there was no need to be so careful. Land prices in Japan had risen too much, and the Mandarin Oriental Group had stopped investing in it since 1985. Now, nearly two years later, Japanese real estate was still rising wildly without any decline. This was enough to prove that John's worries were unfounded!

Even under these circumstances, John was still uneasy about Japan's real estate industry and even intended to sell many of the Mandarin Oriental Group's assets. This was something that Akio Morita found hard to understand, since almost every company in Japan was involved in real estate investment and was making huge profits.

However, Akio Morita didn't continue to persuade him. He knew that saying anything now or later would be useless; a man like John wouldn't listen to others, only to his own decisions, and he would stick to them even if they were wrong. If the Mandarin Oriental Group hadn't withdrawn from Japan, perhaps they would have had even more assets and greater profits there!
John is not only selling the assets of the Mandarin Oriental Group, but also some assets of the Phoenix Group, and even many properties of the Forever Group. He is selling these assets while the Japanese real estate market is still on the rise in order to repay the loans owed by the companies and reduce his own burden.

Although there isn't a precise figure, John's calculations show that clearing out most of the real estate in Japan would allow him to repay most of the company's loans and alleviate a significant portion of the pressure. Even if there are any changes in the future, it wouldn't affect the company's normal development. This is John's plan.

"John, are you worried about the Japanese economy, or about potential problems with trade between the US and Japan?" Although Akio Morita had complete confidence in the Japanese economy, he still wanted to hear John's opinion on the trade between Japan and the US.

"I don't see any problems with Japan's economy for the time being, but I am a little uneasy about the crazy appreciation of real estate. Such a crazy rise is not a good thing for Japan itself. Crazy housing prices will make it unaffordable for young people and will also bring them endless pressure. Moreover, I feel that Japan's situation is somewhat abnormal now. It is too impetuous and too crazy about hedonism. It has completely turned to the West. Isn't this a bit too hasty?"

John's words startled Akio Morita. He hadn't expected John to think that the Japanese were restless and that things were changing too fast. But Morita didn't see it that way. In his view, Japan's current achievements were precisely because of its rapid Westernization, and that this was not a problem.

In fact, it wasn't just Akio Morita who had this idea; the entire upper echelons of Japan shared this view. They believed that Westernization was a crucial factor in Japan's rapid development. They didn't see anything wrong with hedonism or the current atmosphere. They believed that it was precisely because of this change that Japan was able to achieve greater development.

Nowadays, there are countless high-end consumer venues in Japan, and they are all very profitable. The Mandarin Oriental Group has experienced this firsthand. The Mandarin Oriental Group's resort hotels and estates have yielded amazing results, recouping their costs in just two years. Even the huge investment in Lanai Island has been recouped, which has shocked John.

Behind all this is the presence of Japanese tourists. Lanai has become the most valuable island in Hawaii, and its luxurious and extravagant resort environment drives the Japanese crazy, making it a top tourist destination in Japan year after year.

It's not that no one wants to replicate Lanai Island's success, but unfortunately, it's not very effective because costs are rising, time is limited, and most importantly, they don't have Lanai Island's extravagant luxury, so they don't gain the approval of the Japanese and naturally can't make big money. It's not that no one wants to take over Lanai Island, but they all give up when they think of John's identity. Those old guys won't stand against John for Lanai Island and cause a conflict. Besides, Lanai Island is John's private property, and no one dares to challenge everyone's bottom line.

Although the credibility of Europe and America will be completely destroyed in the future, and the idea that personal property is sacred and inviolable will become a joke, such a situation will not occur now. Anyone who dares to cross this line will be besieged by everyone and will definitely die. Those guys are still relatively trustworthy now.

After his initial surprise, Akio Morita quickly regained his composure, shook his head, and said, "John, you still don't quite understand Japan. This isn't impatience, but a normal transformation. It's precisely this kind of transformation that has brought Japan to where it is today, allowing it to emerge from its predicament and become the world's second-largest economy in just a few decades. I don't see anything wrong with that!" "Perhaps, that's the difference in our perspectives. Standing in different positions, we see things differently. I'm not Japanese, so my understanding of Japan isn't very deep. Even with Naoko and the others around, my understanding of Japan isn't profound enough. However, my situation is quite different from yours. My many companies are burdened with substantial loans, so they can't withstand any storms. Even if there's only the slightest potential danger, I have to prepare for risk avoidance in advance, even if it means giving up some profits. That's why the Mandarin Oriental Group is withdrawing from Japan. In my view, although there are many opportunities and huge profits here, there are also risks. In comparison, while Southeast Asian cities may not be as profitable as Japan, their risks are almost non-existent. So I'd rather choose the latter than the former. That's the difference between us."

John's words made Akio Morita even more certain that John was seeking stability and wanted to ease his own burdens, which was why he made this decision. Perhaps in the eyes of himself and many other Japanese people, this was a foolish decision, but from John's perspective, it was the best decision.

In Akio Morita's view, they were pursuing interests, while John was seeking stability. Therefore, their positions were completely different, and naturally, their decisions and perceptions were also different.

"Yes, different perspectives lead to different views and decisions. You're seeking stability, trying to keep the company and yourself safe, but we're pursuing growth. So our choices are two completely different directions. However, while you're keen to repay the loan, I'm afraid the bank won't want that to happen."

John smiled calmly and said, "There's nothing I can do about it. Unless they're willing to take over those assets, there's nothing I can do. After all, businesses need stability and can't afford too much risk."

John is willing to accept the sale of these properties if the Japanese banks are willing to take them over, as long as he can get out of the situation. It doesn't matter who the buyer is, and the banks are not a problem either.

While John and Akio Morita were discussing the Japanese economy and their respective views and positions, Naoko, Riko, Seiko Matsuda, and Yoshie Kashiwabara were completely bewildered. They couldn't judge right from wrong, or even understand the issues at all, since their understanding of business management was limited.

John and Akio Morita quickly ended their discussion on the issue of the Japanese economy. It was enough for them to know each other's thoughts. As long as Akio Morita understood John's concerns, that was enough. At least it relieved him of any worries that John might have some schemes or plots.

Akio Morita quickly stood up and said, "John, you two chat. I have something to do. After all, this is a party hosted in Sony's name. It would be too impolite for me to just hide in a corner and not show my face!"

Although Akio Morita's excuse sounded plausible, John didn't believe it. He suspected the old man was leaving now to share their conversation with others, letting the Japanese know his thoughts. Since John intended to play it safe and repay the loan early, Morita himself needed to inform the Japanese banks, especially Mitsui Bank. After all, Morita's Sony was part of Mitsui, and such important information needed to be communicated in advance.

If John really takes action, it will have a significant impact on all the Japanese banks. Even though John is not in a hurry to act now, it is still necessary to know in advance and make preparations in order to avoid catching them off guard when things happen. The reason John discussed all this with Akio Morita was also to use Akio Morita's words to inform the Japanese banks of his decision so that they could prepare in advance.

(End of this chapter)