Start by trimming cow hooves

Suri slapped his head, and the employees under him were busy.

After careful and comprehensive evaluation from various aspects such as economy, population, number of tourists, and potential profitability, we came to the conclusion that Dubai's luxury housing market is saturated and is not suitable for the development of high-end real estate projects in the short term.

The total population of the UAE is less than 10 million today.

A large number of workers from India and other parts of the Middle East cannot even afford to rent a house, let alone buy a property.

Housing prices in Dubai and Abu Dhabi are expensive, but regular properties are not.

The vast majority of local residents do not have sufficient purchasing power and can only attract international buyers to purchase properties, which results in a rather limited market size.

When Dubai's housing prices rose in the early years, wealthy people from all over the world flocked to buy houses with the idea of ​​investment.

Later, the housing bubble collapsed and the tide receded.

A few people have made a lot of money, but most investors are still deeply trapped until now. Since 2008, local housing prices have been cut in half, so that many investors, like the high-priced islands in the idle world, directly Cut off the supply and cut the meat to stop the loss.

According to the information obtained from the survey, it will take several years for the real estate developed in Dubai to be fully digested. The situation seems to be more serious than Suri imagined.

On the surface.

Whether it is the Palm Jebel Ali, which is larger than the Palm Jumeirah, or the World Island project, which has already sold peninsulas, it is a mess that no one cares about, and it is difficult to see money back in the short term.

Even if they go to Hong Kong City and get the No. 3 New Harbourfront plot in Central, it will be much better than them. At least they can develop shopping malls and office buildings in Central, Hong Kong City, where land is precious. The annual rents will be soft, backed by a huge population and consumption potential. In the amazing mainland market, there is basically no possibility of loss.

However.

After reading the briefing on evaluating these two projects, Suri wanted to take action more than before.

On the one hand, it increases the bargaining chips, allowing the lion to open its mouth and lower the price severely. Maybe it can lower the purchase price to less than 1 billion US dollars, and only selectively bear part of the debt.

On the other hand, with the help of these two projects with serious losses, some assets can be reasonably transferred to Dubai for long-term holding, and a large amount of tax can be deducted year by year.

As one of the world's "tax havens" and maintaining a close relationship with the United States, Dubai is very suitable for storing some assets.

For now.

It seems a bit thankless to take over two messes.

But with the idea of ​​​​preparing for a rainy day, Suri has already begun to think about what will happen in 10 or 20 years in advance. By then, he will have at least hundreds of billions of dollars in assets. Storing tens of billions of dollars in Dubai will make the asset allocation more comparable. Safety.

Super large projects like this that have attracted much attention and are particularly expensive will help him transfer part of his assets outside the United States to avoid being monopolized as much as possible.

If you change the angle again.

Suri admits that he will not be able to boost the mainland property market in more than ten years, but the scale of Dubai's real estate market is not too big.

Once the two symbolic messes of Jebel Ali Palm Island and World Island are included in the pocket, you may be able to make a small fortune immediately and promote the recovery of Dubai's property market in advance.

After all, a lot of real money was invested in building World Island or Jebel Ali Palm Island. Even if only the value of the land itself was calculated, Suri would not lose money, which is equivalent to investing in a relatively stable financial product.

When the time comes, he should be able to use his own reputation and contact some friends in the business world and major customers of Caishen Capital to help him find many powerful buyers and tenants for his real estate development company in Dubai.

Whether it is a big or small project, there is nothing to hesitate about.

With land as collateral, he does not need to actually spend any money. In the early stage, someone else can continue to borrow money from the bank.

I believe that with the current mess that Palm Island Company is in, the banks will be very happy to be Suri's creditors, so that they can at least liquidate the bad debts.

Suri first went out for a walk, then after contacting Mr. Isam, whom he met at the party last night, he personally drove a speedboat and went to the other party's house for a visit.

As the CEO of the Palm Island Group, the largest developer in Dubai, Issam is also a wealthy man with hundreds of millions of dollars in assets. He owns one of the most expensive properties on the Palm Jumeirah, and the garden is slightly more spacious than the house in Suri.

He enthusiastically welcomed Suri into his home, probably because he had studied in the UK and lived for many years. Isam was not so rigid, and even asked the eldest wife, the second wife, the third wife, and the fourth wife to come forward and bring the children to greet Suri. call.

The age difference between the eldest wife and the younger wife seems to be about 20 years. If it weren't for Isam's introduction, Suri would even think that the other party is his daughter, who is good-looking enough to run for Miss World.

According to the local marriage system, men in Dubai can legally marry four wives.

After watching this scene, Su Rui felt a little sour for no reason.

Well, there was another reason to use Dubai as a reservoir of funds. It was rare for him to feel that there was nothing wrong with getting married.

Come and sit by the pool.

After asking Suri for his thoughts, Isam asked someone to bring dates and black tea, and then said with a smile:

"Why do I have a premonition that you will bring me good news today? I think I am not so lovable that you come here to see me."

Suri said with a smile:

"I just went to see World Island and Jebel Ali Palm Island. Construction on them has stopped. Not only has it been idle for a long time, but it is also facing lawsuits from buyers?"

Before Isam could answer, he continued:

"It seems that these two projects are finished. I am slightly interested in taking over. Please package them and sell them to me for $1."

There are many business cases of symbolic acquisitions for 1 yuan. Isam is not stupid at all. He immediately guessed something and asked:

“You want to acquire them along with the Jebel Ali Palm project, divest them completely from my company and take on the debt?”

Suri nodded:

"That's almost it, but my ability is limited and I can only agree to bear US$800 million in debt. You need to figure out the rest by yourself."

"I think the royal family has no reason to refuse my acquisition invitation. According to the current market situation, even if they are developed, they will not attract buyers in the short term. There is no need to cooperate in development for the time being. They are in my hands. , at least it’s not a bad project.”

"If the royal family agrees to my request, I promise to invest at least US$2.5 billion in batches over the next ten years to gradually develop them. This will be a huge benefit to the Dubai real estate market."

Half of the private islands in the original World Island project had been sold in advance, and the development costs were basically recovered, with the buyer taking over and bearing the losses.

The Palm Island of Jebel Ali is a wasteland. In addition to the construction expenses, there are only additional loan interest expenses.

The offer to take on $800 million in debt is about the cost of building them (End of Chapter)