hollywood billionaire

Chapter 569 Do You Care If I Buy a Football Team? (Part 1)

“You have a keen and sharp eye for many things in many fields, but unfortunately this time… you must have misjudged.”

Han Yi carefully considered his words before speaking slowly.

"The projects I'm currently handling are already putting me under a lot of strain and leaving me exhausted. Han Music Group, Han Live, Wave Music Fund, and various music festivals that will be running non-stop from March next year to the end of the year... These are not easy tasks to handle."

“I was completely drained, not only in terms of resources, but also in terms of physical and mental health.”

“I do have a keen eye for many things in many fields, and this time is no exception.” Turki folded his hands in front of him, covering his large belly, and smiled noncommittally. “You’re not drained, Yi.”

“We have a saying where I’m from. It means that only birds of a feather flock together. I’m someone with few friends and even fewer partners, Yi. If I consider someone a friend or partner, then I must see some similarities in them.” At this point, Turki raised his hands, touched Han Yi’s chest, and then placed them on his own chest. “You and I are the same kind of people. We are never bound by rules or industry. If we want to do something, we will definitely do it. We possess unfathomable energy, because this energy is driven by our even more unfathomable wealth.”

“I read that news article, Yi. Your timely entry into the Central Park Tower project is impressive.”

"Did you see it?" Han Yi seemed somewhat surprised, it was hard to tell how much of it was true and how much was false. "I didn't share it on my social media."

"You don't need to share it; anyone who cares even a little about quality assets will see it... Brother, it's the New York Times."

The news report that Turki al-Sheikh mentioned was published today, December 17, 2016.

The author, Ginya Bellavant, is a contributing writer for The New York Times' "Big Cities" column.

title--

Extell fully repays $2.35 million Blackstone loan, a move that surprises critics.

[New York — Amid growing skepticism in the real estate industry, Extell Development announced on Friday that it has fully repaid a $2.35 million loan from Blackstone Group. The last-minute move surprised many critics who had predicted the project would run into trouble.]

The repayment of this loan is crucial to the fate of Extell founder Gary Barnett and his flagship project on Billionaires Avenue, Central Park Tower.

For months, financial analysts and competitors have been closely watching the loan's maturity date, viewing it as a referendum on the health of Manhattan's ultra-luxury apartment market. As the deadline approached, many privately asserted that Mr. Barnett—the developer known for his high-risk, high-reward gambles—was finally running out of money.

However, the financing plan that Extell proactively disclosed on Friday tells a completely different story.

This $2.35 million funding came from two very different heavyweight players. Washington-based private equity giant Carlyle Group provided an $8500 million mezzanine loan.

The remaining $1.5 million came from a surprising and little-known emerging capital management company – Han Capital.

According to Extell's statement, Han Capital's involvement goes far beyond simply providing a bridge loan. The company will formally join the Central Park Tower project as an equity investor, becoming the project's second major institutional investor after Shanghai Chengtou.

“We are delighted to welcome Han Capital as our new equity partner,” Mr. Barnett said in a statement. “The fact that two of the world’s top investment firms—Carlyle and Han—have chosen to support us in a complex financing environment demonstrates the market’s strong confidence in Central Park Tower as a generational asset.”

This confidence stands in stark contrast to the project's performance in the open market.

The critics are not without reason. In recent months, the price of Extell's bonds issued on the Tel Aviv Stock Exchange linked to the Central Park Tower project has plummeted, with yields soaring to distressed levels. The panic in the bond market is palpable; many buyers have lost confidence, betting that the project's total cost of up to $40 billion is simply unsustainable, especially given the current slowdown in high-end market demand.

“Frankly, we were surprised,” said an analyst from a rival developer who requested anonymity. “TASE’s data suggests they are on the verge of default. Getting money from Carlyle is already a big deal, but where did this ‘Han Capital’ come from?”

The scarcity of publicly available information about Han Capital adds to the drama of this deal. The only publicly available information the New York Times could find about this capital management firm came from its March 2016 acquisition of a stake in the prominent Hollywood talent agency UTA. The company's owner, Yi Han, briefly appeared in the media but has since maintained a low profile. In recent months, a new force has emerged in the music industry under the name Han Music Group. The most notable names in this group's roster include Madison Beale, Paramore, and Marshmello. Although no publicly disclosed shareholding information has been released, many music industry professionals believe that Han Music Group is owned by Han Capital. Industry insiders speculate that this may be a newly established North American branch of a well-funded and ambitious Asian family office seeking to expand into the Western world, prioritizing long-term asset holdings over short-term market fluctuations.

In its statement today, Extell insisted that the new funding ensures the project can proceed seamlessly. The company emphasized that despite market noise, the completion date for the Central Park Tower—expected in 2019—is "absolutely not going to be delayed."

For Gary Barnett, this was another narrow victory. But for the New York skyline, the stakes are only just beginning to rise.

The reason why Extell was in such a hurry to publish this news through the New York Times on the same day as repaying the loan is not complicated.

Gary Barnett and his Extell company desperately needed to announce a victory.

He needed to use the space in authoritative media outlets like The New York Times to announce to the entire market—especially to bondholders who were panic-selling inside and outside the Tel Aviv Stock Exchange—that the Central Park Tower project was not only alive, but thriving.

The repayment of this $2.35 million loan is the best boost to morale.

He has no time to waste.

This $2.35 million is just the first step in getting back on track. Barnett's financing plan still has a massive funding gap of at least $10 billion that he needs to fill to truly ensure the successful topping out and delivery of the tallest residential skyscraper in the Western Hemisphere.

He couldn't, and dared not, place all his hopes on Han Yi, his new partner. Although Han Yi's $1.5 million equity investment was a timely help, he hadn't explicitly stated that he would continue to invest. Therefore, Barnett had to secure all existing financing channels and explore new ones, whether it was attracting overseas investors through the EB-5 visa program, restoring the confidence of TASE bondholders, or finding the next Carlyle Group.

Of course, this high-profile report was made after consulting Han Yi. Han Yi did not raise any objections to Han Capital's public appearance.

His calm demeanor was based on sound reasoning. First, the CPT project had already issued public bonds on the Tel Aviv Stock Exchange. As the issuer, Extell was obligated to disclose significant equity changes and financing information to investors, making it impossible to conceal Han Capital's involvement. Therefore, rather than being coy, it was better to proactively manage public opinion and openly disclose its presence.

Secondly, Han Yi also believes that at this stage, investing in flagship projects of this scale is a perfect way to showcase Han Capital's strength, and there's nothing wrong with that. Putting aside Gary Barnett, this can also greatly boost the confidence of his other business partners—whether it's Dr. Dre at Han Music Group in Los Angeles, or Turki Al-Sheikh, a partner at Wave Music Fund.

More importantly, this is a small step in Han Yi's plan to gradually bring the name Han Capital into the view of the North American and even global capital community at a relatively appropriate pace.

He was well aware that his future plans—whether it was the ambitious plan to acquire Musical.ly, the expansion into Las Vegas, or the deep investment in American hotel chains, fashion brands, and luxury real estate—would affect the nerves of countless giants.

Rather than passively becoming a barbarian under the spotlight then, it's better to start now, selectively and step by step, letting the market understand and get used to his presence.

After all, as a communication studies major, he was well aware of the human cognitive curve. No matter how strange, abrupt, or attention-grabbing something is, as long as it survives under the magnifying glass of the media for a period of time, most people will regard its existence as the cornerstone of the daily operation of this world.

If you don't understand this concept, think about the internet, smartphones, or Lady Gaga. Think about how people reacted to these things when they first appeared, and how they react to them now.

The existence of something is justified; it is not only a philosophical concept but also a way of life.

Once you've announced your arrival, weathered the adjustment period for others, and the public's attention has shifted to the next novelty, you've established yourself.

Barbara Pavon is currently in this adjustment period.

For this Hungarian supermodel, what she needs to adapt to is not only this new relationship with Han Yi, but also the seemingly endless ladder of wealth that her boyfriend is climbing in front of her.

She did hear Han Yi talking on the phone with a guy named "Mr. Barnett," and she also heard Han Yi's joke about the liquidity being drained... But she never expected that the liquidity her boyfriend was talking about was actually worth $2.35 million.

“If you’ve read that article, you should know that I invested a considerable amount in that project,” Han Yi said with a shrug. “That left me with absolutely no opportunity to consider venturing into other areas… at least not in the short term.”

“Oh, brother, I really love it when you’re so humble.” With that, Turki put a hand on Han Yi’s shoulder—after getting to know him, Han Yi discovered that this Middle Eastern tycoon was someone who particularly enjoyed physical contact—and, with one hand loosely covering his stomach, turned his gaze to Barbara. “Who wouldn’t like a man who is incredibly wealthy yet remains humble to the core?”

"'Wealthy enough to rival a country' is a bit of an exaggeration," Han Yi grinned and joked. "I'm sweating just thinking about it." "Exaggerated or not, it depends on which country you're comparing it to."

Turki's scrutinizing gaze lingered on Barbara's face for a moment, as if searching for something. Ultimately, perhaps not finding the signal he was looking for, a smile played on Turki's lips. He swallowed the rest of his sentence that was already on the tip of his tongue, replacing it with an assessment that might sound somewhat inexplicable to others:
“You must remember, Yi, we Saudis… when it comes to assets, our attitude is acquisition. Only when dealing with our peers is our attitude towards cooperation.”

"Feel free to be yourself as a peer. Don't worry, you're safe here."

“I have never worried about safety when I am with you.”

Han Yi casually replied, appearing calm and collected on the surface, but his heart was already in turmoil.

As the person directly involved, he naturally understood the multi-layered and complex subtext in Turki al-Sheikh's words. To a certain extent, it precisely answered Han Yi's biggest question about this Saudi billionaire.

That is—why would the Saudi General Authority for Entertainment, or rather Turki al-Sheikh himself, so readily agree to such a deep collaboration with a complete newcomer like him? Keep in mind, before the trip to London, they had only met once in Las Vegas, and all subsequent communication had been conducted online.

Now the answer is clear. Just as he expected, after their meeting, the Saudis must have used state-level intelligence to conduct a comprehensive and astonishing background investigation on him.

Anyone from outside the royal family who wants to get involved, connect with, or even collaborate on business projects with the royal family needs to be screened in this way to be considered normal.

Prince Salman, whose position was not yet secure in 2016, should be especially cautious about this. Even if Turki were in power, a single misjudgment of people could become a bargaining chip used by his political enemies to turn the tide.

As for what they actually discovered...

Han Yi's gaze lingered on Turki's seemingly genuine smiling face.

"Hey friends, how much of my assets did you find out? Would you mind sharing it with me?"

This was clearly not a question he could ask in front of Turki.

However, Han Yi was almost certain of one thing.

The Saudis' investigation will uncover far more than the assets they currently control, perhaps even much more.

It was so much that even he himself would be startled if he heard it.

Otherwise, given the size of Turki al-Sheikh's company—which represents the entire Saudi Arabian sovereign wealth fund—it would be impossible to describe him as a peer.

Peer.

Who can be a peer to the Saudi royal family?

The shares in Han Capital, Han Music, and UTA, plus the $2.35 million Central Park Tower... all of these combined might make them Wall Street upstarts in the eyes of Carlyle or Blackstone, but in the eyes of the Saudi national team, they don't even count as assets; at most, they are just a few interesting acquisition targets.

Turki, however, said that they were partners.

interesting.

It was so much fun.

Just how many great gifts did they prepare for themselves in the memo?

He couldn't wait to complete all the tasks at this stage, unlock the $12 billion investment fund, and then continue to stand on tiptoe and look towards the clouds.

There's always someone better.

Han Yi licked his lips, feeling every drop of blood flowing through every vein from his heart to his fingertips rapidly heating up.

Barbara Pavin, who was unusually quiet and had a dry mouth, was also standing a few feet away from Han Yi and Turki.

But her dry mouth was more due to anxiety stemming from confusion and worry than excitement.

Barbara was a smart girl; even without being explicitly told, she could still roughly understand what the Saudis were saying.

According to Turki al-Sheikh, Han Yi's liquidity is not something that this exorbitant real estate investment, which is already enough to make her head spin, can drain.

Even though she was confident in her boyfriend's innocence, Barbara couldn't help but feel a slight worry—Han Yi...could he be another Jho Low?
Because if not, how did he manage to complete this series of major investments?
Young entrepreneurs of this age, no matter how wealthy, shouldn't be this ridiculously rich.

But despite her doubts, Barbara would never ask the question so directly. On one hand, she had always been confident in her ability to judge character; the man she had chosen might be mysterious, but he could never be a transnational fraudster like Jho Low.

On the other hand, and most importantly, her relationship with Han Yi is far from progressing to the point where she can ask such a question.

and……

Won't we have the answer when we meet his family in Italy next summer?
Barbara silently told herself to stop this pointless agonizing. She wasn't his financial advisor, nor was she an FBI agent.

She's just his girlfriend now, nothing more.

What she needs to do is enjoy the present moment, enjoy this rare holiday season without work distractions, enjoy the time she can spend with him, and create wonderful memories in London and Europe. That's the most important thing right now.

Thinking of this, Barbara raised the champagne glass that had been warmed in her hands and drank the rest of the wine in one gulp.

She gently placed the empty wine glass back on the long, silver-white dining table, smacked her lips, and a bright smile returned to her face. She turned her gaze to Han Yi, who was continuing his conversation with Turki while walking beside him out of the private room.

Barbara took a deep breath, quickly followed, and took Han Yi's arm.

Han Yi turned his head and gave her a reassuring smile.

The three of them walked through the glass door together and went to the last row of the presidential stand.

Almost the instant they sat down, in the center of the field, the referee for the match, Jonathan Moss, raised his arm and put his whistle in his mouth.

"Beep——!"

A crisp, sharp whistle pierced the noise above Selhurst Park.

The competition officially begins.

(End of this chapter)