eurekapd Chapter 203 The Arrogant Seller
Chapter 203 The Arrogant Seller
(A long chapter of 6000 words~)
October 27, 1989, 10:00 AM.
Nikkei Average: 30,120 points
Saionji Construction Headquarters. First Conference Room.
The surface of the large, black lacquered glass conference table reflects the straight strip of light from the cool-toned LED tubes at the top.
Eguchi Tokuhiro sat in the first seat with an imposing air.
He wore a well-tailored, dark-colored suit with subtle patterns. At the collar, the sterling silver badge inlaid with black onyx gleamed with a sharp metallic luster under the cold light.
Unlike his usual mobilization meetings, he didn't stand up and shout. Instead, he leaned his broad back heavily against the leather chair, his hands casually resting on his flat stomach, fingers interlaced.
The sales manager and the key frontline staff sat upright, all eyes fixed on him.
Recently, the group seems to have made some strategic adjustments. Although they have a general understanding of the documents, it is still necessary for Eguchi to make the final announcement of the decision.
"I'm sure everyone has already seen the document issued by the Finance Department," Tokuhiro Eguchi said slowly.
"Starting this afternoon, all of the first-tier plots of land under Saionji Construction will be put up for sale. These are the odd-shaped plots of land located on the edge of Setagaya Ward and Nerima Ward that we have acquired in the past two years, as well as some high-premium old factory sites."
From both sides of the long table came a very faint sound of fabric rubbing together.
Several section chiefs in charge of frontline sales exchanged glances, their eyes revealing undisguised confusion. At the height of the real estate bubble, when the entire city of Tokyo was frantically buying land, they were actively selling off plots of land they had been hoarding. By all accounts, this defied common sense in the real estate industry.
"President." The head of the First Sales Department, seated at the head of the left-hand seat, gave a slight bow. His tone carried a hint of tentative caution.
"The market valuation of these peripheral plots is rising every day. According to Nomura Securities' forecast, there's at least a 10% upside potential before the end of the year." The minister swallowed hard. "If we liquidate our positions immediately, when our staff negotiate with clients, buyers might suspect we have financial problems, leading to unfair price pressure..."
Tokuhiro Eguchi's lips curled upwards. He let out a short, soft chuckle, loosened his crossed arms, and leaned forward slightly. His thick arms braced against the black glass tabletop.
"There's a problem with the funding chain?" Eguchi tapped his fingers lightly on the table twice. His tone carried the composure and disdain of a high-ranking executive of a major conglomerate.
"Minister, you seem to have forgotten who we work for."
He opened the drawer beside him, took out a bound internal briefing, and casually tossed it into the center of the table. The paper slid a short distance across the smooth glass surface, stopping where the eyes of several managers met.
"You've all heard about SA Group's cash flow statement from last month," Eguchi said, his gaze sweeping over everyone present. "Just from fresh food supplies to convenience stores and clothing retail alone, the group earns billions of yen in net profit every month. Would we be short of money?"
The meeting room was extremely quiet.
"Everyone, look at those numbers on the table." Eguchi leaned back in his chair. "The 500-meter tower in Odaiba. The glass dome in Hokkaido. These two wonders of the century are devouring massive amounts of cash every day."
"According to the logic of those mediocre real estate developers, for a project of this scale, they should have approached Mitsui or Sumitomo Bank to apply for high-interest bridge loans of hundreds of billions of yen and used leverage to keep the business running."
Jiang Gu paused slightly. A hint of pride as a retainer flickered in his eyes.
"However, the young lady and the head of the family have always prioritized 'absolute safety' and 'zero debt' in their business philosophy."
"The top management is extremely averse to bowing to banks. They are even less willing to endure meaningless interest rate exploitation in pursuit of inflated valuations on paper."
He made the final decision.
"This doesn't count as being forced to take a loss."
"The group is simply carrying out a routine 'asset structure optimization'."
"Strip away those non-core, peripheral plots of land that require significant effort to manage. Use the huge sums of money you get in return to directly invest in construction sites in Odaiba and Hokkaido."
"We will cease all external expansion. We will adopt the most conservative approach and concentrate our efforts on building our core fortress."
The initial restlessness and doubts in the meeting room dissipated considerably.
The managers and key business personnel present relaxed their tense shoulders slightly.
They stared at the staggering project cost report on the table. The enormous figures were visually overwhelming.
The group continues to pay generous monthly salaries on time, and all retail operations are running smoothly. They prefer to sell peripheral assets to replenish cash flow for infrastructure projects rather than borrow excessively from banks. While this approach may seem conservative to the point of being rigid, it perfectly reflects the Saionji family's consistently prudent style.
It's normal for family businesses to be more conservative.
This argument, by a small margin, forms a self-consistent logical loop.
However, in this crazy era where land prices change every day, actively selling land that can lay golden eggs ultimately goes against the professional intuition of real estate professionals.
Several front-line section chiefs exchanged glances, a barely perceptible hint of doubt still lurking in their eyes.
But this slight ripple was quickly suppressed in my heart.
"I see..." The head of the First Sales Department let out a long sigh. His usual capable demeanor returned. "Since it's a tactical contraction by the group's upper management, we'll have more confidence when we're negotiating on the front lines."
"We must have a bottom line." Tokuhiro Eguchi straightened the cuffs of his dark suit, his tone hardening.
"At the negotiating table, put away that eager-to-sell attitude."
"We are allocating these prime locations solely to concentrate resources on tower construction. Therefore, we absolutely cannot allow any concessions on the price."
"You think it's too expensive? Then let them get out. There are plenty of people outside waving their money, eager to get a piece of the Saionji family's wealth."
"Did you understand?"
"Understood!" A unified and loud response reverberated throughout the dark conference room.
Having chosen to accept this narrative, these elites completely suppressed any slight sense of unease they might have felt.
They straightened their backs again and adjusted the hems of their suits.
Driven by the strong psychological suggestion that "the group is not short of money at all," this group of people, with a confidence forcibly instilled by huge cash flow and the pressure from above, are ready to play the role of the most arrogant seller in the world at the next negotiating table.
……
The cold rain of early winter was mixed with chill. The raindrops pounded heavily on the plastic awnings of the narrow izakayas outside Shinbashi Station.
Inside a cramped little pub, the heater was humming under its own strain.
Thick smoke floated in the air, blurring the halo of the dim chandelier.
Two middle-aged men in trench coats sat at a greasy little wooden table in the corner.
The man on the left unbuttoned his windproof coat, revealing a shirt underneath without any markings.
He is a mid-level manager in the Real Estate Division III of Saionji Construction. This morning, he had just attended an internal mobilization meeting chaired by Tokuhiro Eguchi.
He picked up the sake pot in front of him and poured a full cup of sake for the man opposite him.
"Yamada-kun, this is a toast to you." The manager's eyes flickered slightly, and he lowered his voice. "My son's deposit for studying in the US next month... I really appreciate your help."
The man known as Yamada wore an unremarkable dark gray overcoat. His public identity was that of an ordinary real estate broker. In reality, however, he was a seasoned informant planted within the industry by the Daiei Group's intelligence division.
Yamada picked up his glass and took a small sip. His smile was gentle and harmless.
"We've all known each other for a long time, this little favor is nothing."
He put down his wine glass. He leaned forward slightly, his voice extremely low.
"However... the Saionji family has been quite active in the market lately. They've suddenly put dozens of marginal plots of land up for sale."
"People in the industry are saying, is it because your two big projects burned through cash too quickly, and your cash flow finally couldn't hold up?"
When Saionji heard this, he was taken aback for a moment. Then, as if he had heard an absurd joke, he couldn't help but chuckle in a low voice.
"Bankruptcy? Broken cash flow?" The manager pulled a pack of Seven Stars cigarettes from his pocket, took one out, and lit it. The bluish-gray smoke blurred his face.
"Yamada-kun. Those people outside have no idea how terrifying the Saionji family is."
He exhaled a smoke ring, his tone carrying a pride that he himself was absolutely certain of.
"I just came out of President Eguchi's conference room this morning. Our monthly rent and retail profits are ridiculously high. The big shots at the top are definitely not short of money."
The supervisor flicked off the cigarette ash.
"However, the head of the family and the young lady are extremely conservative in their ways. The amount of special concrete dumped into the sea every day for that 500-meter-tall tower in Odaiba is astronomical."
"And that resort in Hokkaido too, the expenses in one day are equivalent to my salary for several years."
"The higher-ups would rather sell off their marginal land holdings to fill those bottomless pits than borrow a single extra penny from Mitsui Bank."
"They call this 'low-debt tactical optimization'."
Yamada's fingers, which were holding the wine glass, paused for a second.
"Just to avoid taking out a loan, they're giving up the land's future appreciation potential?"
Yamada's tone carried a perfectly measured hint of doubt, as if guiding the other party to delve deeper.
"That's how inflexible we are," the manager scoffed. "We've completely given up on external expansion opportunities. So our sales department was given a death order: not a single penny off. We're not in a hurry to sell anyway; take it or leave it."
Yamada listened quietly.
He picked up his glass, his gaze subtly observing the other person's slightly distorted and resentful expression, which was a result of "missing out on commission," through the rising steam.
As a seasoned broker in Daiei's intelligence division, Yamada had seen far too many deliberately released false information. But the frustration and resentment stemming from limited understanding he felt before him was far too vivid to be acted out by a mere junior manager.
More importantly, the tedious details about "special concrete" and "refusal of bank loans" perfectly matched the bits and pieces he had recently gleaned from the fringes of the financial world.
All the clues were pieced together. Yamada quickly made what he considered his most professional judgment in his mind.
The Saionji family was not at their wits' end. They were still a large family, but they were hampered by their outdated and rigid zero-debt doctrine, which forced them to adopt a passive tactical contraction.
It's probably those stubborn elders in their family who don't know that times have changed. They're afraid of making money too quickly; they're really old-fashioned.
"I see." Yamada smiled, raised his glass, and clinked it with his supervisor's. "It seems the rumors were indeed exaggerated. The Saionji family remains as stable as ever."
The glasses clinked together, making a crisp sound.
……
The next morning. Sunlight barely pierced through the thick clouds, shining on the skyscrapers of Akasakamitsu.
The Akasaka Prince Hotel. Inside the Royal Suite on the top floor of the new building.
Thick, soft Persian carpets were laid out in front of the large French windows. The indoor temperature was strictly controlled at 24 degrees Celsius.
Yoshiaki Tsutsumi, the commander of the Seibu Group, was wearing a dark gray silk morning robe.
He sat upright at the marble dining table, holding a cup of black coffee in his left hand and flipping through the "Analysis Report on Recent Asset Changes of the Saionji Group" that his secretary, Shimada, had just handed to him with his right.
This report combines the widely publicized infrastructure black hole bills in the media, the so-called "loan refusal" rumors leaked from within Mitsui Bank, and grassroots movements intercepted from the intelligence networks of competitors such as Daiei.
Yoshiaki Tsutsumi turned a page, his gaze lingering for a moment on the lines "tactical contraction" and "refusal to increase bank leverage".
He put down the report, picked up the black coffee on the marble table, and took a sip. The bitter yet mellow liquid slid down his throat, causing his slightly furrowed brows to relax a little.
"You were so bold when you were shorting on Wall Street, so why are you so timid now that you're building houses in China?" Yoshiaki Tsutsumi's fingers gently caressed the edge of the bone china dish, his tone revealing a hint of doubt.
After a moment, he seemed to have figured it out, and the corners of his mouth turned up, letting out a short, soft laugh.
"It seems that the little girl who's been talked about like a god by outsiders has finally been unable to resist those old guys in the family."
Yoshiaki Tsutsumi placed the coffee cup back on the saucer.
"His abilities are certainly sufficient." He shook his head, looking out the window. "It's just a pity that he was born into an old aristocratic family like Saionji. No matter how ambitious he is, he is completely restricted by those outdated rules and regulations, and by those timid and hesitant elders."
Secretary Shimada, standing to the side, gave a slight bow and then spoke up at the opportune moment.
"Chairman, according to intelligence, Saionji Real Estate's attitude in the transaction market yesterday was extremely tough. They even chased away a mid-sized developer who was trying to snag a bargain over a difference of a few hundred thousand yen. This tough stance certainly confirms that they are not in a hurry to raise funds internally."
"It's just a bluff." Yoshiaki Tsutsumi picked up the red and blue pencils from the table again.
This kind of foolish and regrettable approach—facing heavy asset consumption, not utilizing bank loans, but instead being forced by family rules to sacrifice the future appreciation potential of land—is simply regrettable.
"The tower in Odaiba, and that glass dome in Hokkaido."
Yoshiaki Tsutsumi stood up and walked to the floor-to-ceiling window, looking down at the bustling Tokyo cityscape bathed in the morning light.
"The capital consumption curve for infrastructure is never linear. It explodes exponentially."
"Those conservative old fogies think they can fill that bottomless pit by selling a few scraps."
"But once the cash from those scraps of flesh is burned up, the Ministry of Finance's credit gates will tighten even further. By then, what will that little girl have left to convert into cash?"
Yoshiaki Tsutsumi turned around and slowly walked to the marble desk.
His gaze swept over the complex asset reports and finally landed on a partial map of Hokkaido on the edge of the table.
"The Crystal Palace in Ginza, the Pink Building in Akasaka..."
He picked up the red and blue pencil, his fingers stroking the wooden handle, his greed in his eyes undisguised.
"Of course, there's also that... glass dome, I've been eyeing it for ages."
The red and blue nib of the pencil slammed down twice on Niseko's coordinates on the map, making a dull "thump-thump" sound.
"Notify the Finance Department." Yoshiaki Tsutsumi's voice was deep and authoritative. "Suspend the two acquisitions along the Seibu Railway line. Consolidate all available cash within the group."
"Since that sweetest apple is ripe, let's leave it in their hands for a few more days." He leaned down slightly, looking at the red and blue markings on the map, and let out a very short chuckle. "When they really can't hold on any longer, when their cash flow is completely cut off by the exorbitant prices of heavy oil burning every day."
"I will naturally bring my checkbook and go there to swallow those core buildings, along with that spectacle, whole in one gulp."
……
Construction of Saionji Temple. Real estate transaction hall.
The air here was completely different from the chill outside. Hundreds of small and medium-sized developers, real estate brokers, and enthusiastic investors, who had come after hearing the news, packed the nearly 500-square-meter hall to the brim.
Given the current market conditions, it's incredibly difficult to buy even a tsubo (a unit of area in Tokyo) of land. Now, the Saionji family is actually selling land?
Everyone's first reaction was, "Has the Saionji family gone mad? Selling out the golden eggs they've laid?" Their second reaction was to hurry up and buy them. Regardless of whether the Saionji family's higher-ups had gone crazy, they wanted to grab whatever they could, because if they were late, they'd be gone.
Inside a semi-open signing booth in the center of the hall, Takahashi, a junior sales representative from Saionji Construction, was leaning back in a leather swivel chair with an air of nonchalance.
His dark suit was perfectly wrinkle-free. The fluorescent lights on his glasses reflected off his nose. He didn't even bother to open the land transfer contract in front of him.
Sitting opposite him was the president of a mid-sized real estate developer, his face flushed and forehead covered in sweat. The president was anxiously wiping his neck with a handkerchief, his eyes occasionally glancing at his peers in the lobby who were fiercely bidding for land.
"Takahashi-kun." The president's voice was shrill with urgency. "This odd-shaped plot of land in Shinagawa was valued at only 600 million yen last year. You're now asking for 850 million yen, a premium of almost 30%! Since the Saionji family is releasing so many plots of land at this time, shouldn't they offer some reasonable discounts?"
Takahashi looked at the other person's eager-to-profit yet fearful-of-losing face, and a cold smile crept across his face.
He recalled President Eguchi's speech in the conference room yesterday.
He slowly straightened up. He extended his index finger and tapped it lightly twice on the thick cover of the contract.
"President Yamada." Takahashi's tone was flat. He didn't even bother with a superfluous pleasantry. "You've probably believed those ridiculous rumors circulating outside about our tight cash flow."
He picked up the teacup beside him and blew on it to cool it down.
"The reason why the group's senior management is selling these non-core plots of land is that the Saionji Group is a socially responsible company and feels obligated to give back to society. That's why they are still selling these high-quality assets even under these market conditions."
"Secondly, the group also wants to concentrate resources and fully promote the construction of the new headquarters in Odaiba. This is called asset optimization. After all, given the size of our company, it would be a misfortune for the whole society if we were not more stable."
"Furthermore, we have plenty of cash flow, so we don't need to beg you to buy from us."
Takahashi put down his teacup. He leaned back, crossed his arms over his chest, and slightly raised his chin.
"This piece of land is worth 850 million, not a penny less."
His gaze went over President Yamada's shoulder and landed on the chaotic hall outside.
"If you think it's too expensive, you don't have to sign today."
"In the lobby outside, there are at least a dozen trading companies queuing up to take over the shares that the Saionji family has leaked."
"After all, with land prices changing daily, these prime locations that can be acquired without going through a lengthy bidding process are usually not available to you."
President Yamada followed Takahashi's gaze and glanced back.
On the other side of the hall, at the signing table, another developer was unhesitatingly stamping their red legal representative's seal on the contract. A murmur of envy rippled through the surrounding crowd.
In this crazy era of superstitious belief in "land myths," everyone fears being left behind by this ever-rising train of wealth.
Since the land price can continue to rise, the 30% premium is negligible in the face of future price surges.
The sense of panic was completely stripped away, and greed took over.
"I'll sign!" President Yamada, fearing Takahashi might change his mind, abruptly turned around and pulled the contract in front of him. He frantically pulled out inkpad and the company seal, a symbol of authority, from his briefcase.
Because of the excessive force, the wooden edge of the printed object even bumped against the glass tabletop, making a dull thud.
"Snap." He gripped the seal with both hands and pressed it forcefully onto the signature section of the last page of the contract.
The red ink was deeply embedded in the texture of the paper.
Throughout the afternoon, similar scenes repeated themselves in every corner of the hall.
Those marginal scraps that come with extremely high risks and are being sold at exorbitant premiums at high prices.
They were fed by an incredibly arrogant zookeeper to hungry wolves with bloodshot eyes, yet who were incredibly humble.