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To: pezz who wrote (52009)	8/3/2004 6:55:24 AM
From: TobagoJack	Respond to of 74559

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

To: pezz who wrote (52009)	8/3/2004 11:58:56 PM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hello Pezz, Today's Report: Following up on this Message 20372779 , the lead partners decided to commit to a course of action that will end somewhere between good and ugly, happiness and despair; and ... so the few brave souls who decided to tag along without so much as a map or compass, rations or water, term sheet or so much as a letter, remitted our 50% earnest money to the escrow lawyers. Making the bank transfer was a an experience similar to puking one's breakfast, lunch, and dinner out in a bathtub after a good night's out. You like excitement? I had been accused by friends that I had not informed them of opportunities, and so I did this time. I raised more funds with no paper backup within 24 hours than all of my previous life. We will lunch together in a few minutes, to ruminate over what we have done, and scare each other half to death. Well, I know the location, and I believe. May the Force be with us. Chugs, Jay P.S. Had an interesting dinner with 6 friends last night, lasting from 7:30 to 2:00, and each presented at least one good idea to financial suicide, long and/or short. Will blog later.