Hello Pezz, Today’s Report:
I have committed to buy into the third partnership that may end up owning a riff raff building directly opposite this the main entrance of this extremely glitzy Mongkok development langhamplace.com.hk .
If you remember, this is the neighborhood where Tranche I partnership bought a bunch of ground level shops (including a brothel premise), and Tranche II partnership bought a small building (that houses a large seafood restaurant) where we ended up throwing out the tenant, and now, Tranche III.
Tranche I will distribute some money due to sale of brothel.
Tranche II is being revalued and refinanced, and the partners will get half of our capital back by next month (crossing fingers).
Tranche III was brought to awareness just 2 days ago, a special situation (but of course) where the owner wants to sell, and unless we exercise first right based on earnest money paid, we lose to a competing buyer.
The building was owned by two owners that hate each other, and one owner sold his 45,000 square feet at USD 60mm, another owner has 25,000 square feet. The second owner will absolutely not sell to the first owner, or anyone / entity remotely associated with the first owner, including the new buyer from the first owner.
We have a few hours to close, and we are short USD 5 mm of equity. The bank will finance at Libor +100 basis points.
If we can gather the necessary support, buy the 25k square feet, wait out the vacant possession period of 24-36 months of both parts of the building, then we can cooperate with the other owner to redevelop the whole site.
The building currently houses noodle shops, cheap shops, nightclub, brothels, and some down-market office.
I do not know if the lead partners can secure the necessary equity (they have already committed to the prudent maximum themselves). They may choose to risk their own money for deposit and count on raising the rest in the coming days and weeks. Special Situation. Excitement. Urban Redevelopment.
We shall see.
Chugs, Jay
Reference Tranche I & II:
Message 18615902
February 23rd, 2003
Message 18834299
April 13th, 2003
Message 19210327
August 14th, 2003
Message 19233400
August 22nd, 2003
Message 19781668
February 8th, 2004
Message 20124191
May 13th, 2004 |
