Chapter 534: Saionji’s Investment Opportunity

"What is Carlyle’s position in this?"

Satsuki turned her head and looked at Hale.

"For now, just an advisor and a potential partner."

Hale put down his teacup.

"Base closures and military-to-civilian conversion are the directions we have been studying for the past two years."

"In the next few years, dozens of bases across the United States will be closed successively. There will definitely be great opportunities in this, but there will also be many pitfalls."

"Thomas’s project is the most thoroughly prepared one we have seen."

He glanced at the master plan on the table.

"He has already done a lot of work locally, including land purchase options, local government support, and a phased development plan."

"These things might look inconspicuous, but starting them from scratch takes a lot of effort."

"However, no matter how well-prepared the project is, it cannot solve the funding problem."

Satsuki nodded.

"So Carlyle hopes Saionji will invest?"

"Yes, but not entirely."

Hale adjusted his sitting posture slightly.

"We hope to participate in this project. However, Carlyle’s fund is not very suitable for undertaking a large-scale real estate development lasting more than fifteen years."

"Asking us to shell out over a billion dollars and wait more than a decade to see returns is obviously not what we are good at."

"Therefore, if Saionji is willing to participate, we hope to join in the form of a minority equity investment and project advisor."

Satsuki raised her head.

"Advisor?"

"Mainly regarding the reuse of military assets."

Hale reached out and pointed to the area circled in red on the blueprint.

"Land disposal after base closure, facility handover, and communication with the Department of Defense, the Army, and other federal departments—these are all businesses Carlyle hopes to participate in long-term."

"Of course, we cannot guarantee that we will definitely get the military’s land in the end. But at least we can help the project avoid some detours."

He withdrew his hand and continued:

"If this project succeeds, Carlyle will also have a large-scale military-to-civilian development case that it has truly participated in."

"When we encounter similar bases in the future, we will have the experience and partners willing to do business together."

"As for investment returns, we can exit by selling equity after the first or second phase matures. There is no need to wait until the entire development zone is fully built."

Satsuki glanced at him.

"I see."

That made a lot more sense.

What Carlyle wanted to do was an investment it could exit from, as well as a business it could operate long-term.

As for the development costs of the entire development zone for the next fifteen years or even longer, someone else would need to be found to bear them.

"So, are you here today to find a long-term partner for yourself?"

"Of course."

Hale answered quite readily.

"However, Miss Saionji, I specifically brought Thomas to see you today for another reason."

"Oh?"

"You should have noticed that the conditions the local government is willing to provide are quite good."

Hale pointed to the preferential plan on the table.

"There are many places in the U.S. striving for corporate investment right now, but places like San Luis Obispo Bay, which urgently need to rebuild their industrial base due to the closure of a military base, are somewhat different."

"What they need is not just a developer willing to buy land."

"They need a large enterprise truly capable of bringing industries over."

Satsuki looked at him.

"So you thought of Saionji?"

"That’s right."

Hale nodded.

"Saionji already owns quite a few investments in the U.S. and has been expanding its business in recent years."

"Your manufacturing, electronics, logistics, and other industries all have the potential to establish more facilities in the U.S."

"If you just wanted to buy a few office buildings or build an ordinary industrial park, I suppose you wouldn’t be interested."

He paused slightly.

"But what if there is a place willing to provide long-term tax incentives and infrastructure support for your investment, and adjust the development plan according to your industrial needs?"

Satsuki glanced at the materials on the table again.

"Sounds like the terms are quite good."

"And now is the exact time to negotiate these terms."

Hale continued:

"The base hasn’t closed yet, and the development zone hasn’t truly started construction."

"Although Thomas has done a lot of preparatory work, he hasn’t found a sufficiently large investor yet, nor has he determined the first batch of core tenants."

"If Saionji is willing to participate, you will have the opportunity from the very beginning to decide where your investment should be used, what supporting facilities are needed, and how the entire development zone should develop."

"Of course, what specific preferential terms can be secured still requires formal negotiation with the local government."

"For matters involving the jurisdiction of the state government or the federal government, we cannot make promises on their behalf."

Hale looked at Satsuki.

"But I believe Saionji has enough capital and industrial strength to make them seriously consider your requests."

"Besides, you probably aren’t in a rush to recoup all your investment within three to five years, right?"

Satsuki glanced at him.

"You certainly know me well."

"After all, we just talked the day before yesterday."

Hale shrugged slightly.

"As far as I know, among all investors in the world, Saionji is probably the one who knows how to wait the most."

Satsuki smiled and didn’t take up the compliment.

"As for the R&D park section," she lowered her head to look at the blueprint again, "what kind of research do you envision?"

"Mostly electronics, communications, and materials."

Eden said, "There are already some testing facilities locally that served as contractors for the Department of Defense, as well as a seaside testing ground. After the base closes, these things won’t necessarily all be dismantled."

"If they can be retained and converted for civilian use, it will be very attractive to companies that need equipment testing."

"Coupled with the nearby university and medical school, biomedicine and medical devices can also be considered."

"Medical devices?"

"Yes. The medical center of the nearby state university has wanted to expand for the past two years, but has been troubled by the lack of space."

Satsuki’s fingers stopped at the edge of the blueprint.

R&D park.

Medical center.

Testing facilities.

She suddenly remembered that voice on the phone last night.

"Equipment bought locally, repaired locally, and experimental approvals can also be handled directly by people familiar with these matters."

"Our own research institute can establish a complete review and confidentiality system in accordance with local regulations."

American research institute.

When she wrote down those words on her notepad last night, she was only thinking about the issue of site selection.

Which university to place it next to, which building to buy, which city to find.

But what if instead of buying someone else’s building?

Satsuki’s gaze slowly shifted outward along the blueprint.

Over three hours to the north is Silicon Valley.

Cisco is there, and several other chip and software companies invested in by Saionji are also there.

A bit further south is San Diego, where Qualcomm is located.

Texas’s energy projects, the U.S. team of S.A. Global Engineering and Logistics Rescue Group, those properties in New York... Over the past few years, the things Saionji spread out in the U.S. were scattered all over the place.

Although the global headquarters of S.A. Investment is in New York, and various businesses each have their own management teams and office spaces.

It’s just that these strongholds each have their own purposes and are quite scattered from one another.

If Saionji wanted to establish a complete R&D, testing, and production system in the U.S., it couldn’t simply find a new piece of land, rent a few buildings, and solve all supporting issues from scratch every time a new business was added.

And here—

There is land obtainable at a low price, a large number of abandoned factories and warehouses, and a batch of unemployed engineers and technicians.

Close to the port, the transportation conditions are not bad either.

In the future, if it can obtain the military’s land, it might also gain more facilities and development space.

More importantly, the local government is willing to offer quite generous policy conditions to attract corporate investment.

Satsuki’s fingers tapped gently on the table.

If Saionji came, it wouldn’t just be an investor.

The research institute could be set up here, and the testing of electrodes and equipment could be set up here.

Other businesses to be done in the U.S. in the future could also be gradually placed here.

Moreover, these facilities could all be planned according to Saionji’s own needs.

What kind of factory buildings are needed, how large the laboratories should be, and what transportation and logistics support are required can all be considered right from the beginning of the development zone’s construction.

Even the local government’s preferential plans would have the opportunity to be re-formulated around Saionji’s investment plan.

Satsuki glanced at the material on the table again.

Taxes, land, infrastructure, and conveniences in approvals.

If these conditions could truly be implemented, then for the next dozen years or so, the cost of Saionji conducting business here could potentially be a cut below other places in the U.S.

And Saionji itself would be the "first person to move into the open space."

Those suppliers and partner enterprises that were originally going to follow Saionji could also be introduced bit by bit.

For Eden, this was the piece he lacked the most.

For the local government, Saionji could bring real industry, employment, and tax revenue, giving them a reason to continue supporting the development zone.

Once the first batch of enterprises truly settled in, and factories, roads, water and power supply, and other supporting facilities gradually improved, things later on would actually become much easier.

Those enterprises that were originally unwilling to come due to fear of risks would also start reconsidering this place.

After all, being able to enjoy preferential policies and having ready-made industrial support, why go to other places to start from scratch?

Satsuki’s gaze fell back onto the blueprint.

In this way, the infrastructure and industrial resources initially invested by Saionji could continuously attract new enterprises to join.

And as the initial core investor, Saionji could also gradually expand its influence over the development zone during this process.

For her, this far exceeded the significance of an ordinary real estate investment.

A long-term industrial stronghold on U.S. soil, planned with Saionji’s participation from the very beginning.

Compared to renting a few floors in a city built by others, it was completely different.

Of course, there were also many problems in this.

Land had to be negotiated piece by piece, and the military portion didn’t know how many years it would drag on.

Eden’s own funds were limited. Once Saionji came in, a large part of the project’s risk would fall onto Saionji.

How much Carlyle planned to invest, how the advisory agreement should be specifically signed, and when it could exit all needed to be confirmed one by one.

As for the preferential plan given by the local government, it was currently only a preliminary intention.

What kind of investment and employment commitments tax exemptions would require, who would pay for infrastructure, and to what extent future development planning could be adjusted according to Saionji’s needs—all these could only be determined after truly sitting down at the negotiating table.

Moreover, putting a research institute in the U.S. inherently meant putting some things within someone else’s reach.

However...

If it’s just doing real estate, this money might not be worth it.

But what if it’s not just real estate?

"Miss Saionji?"

Eden called out cautiously.

Probably because she stared at the blueprint in silence for too long, making this developer start to get nervous.

Hale wasn’t in a hurry at all, leaning back on the sofa, looking like he was already used to it.

Satsuki snapped back to reality.

"Sorry, I was thinking about some other things just now."

She raised her head and looked at Eden.

"Mr. Eden, I will have my team review your materials carefully. But before that, I’d like to ask you for a favor first."

"Please go ahead."

"Take me there."

Eden froze.

"...Where?"

"San Luis Obispo Bay."

Satsuki’s finger landed on the area circled in red on the blueprint, moved outward a bit more, and landed on the main street missing its signboard letters.

"The blueprints are well drawn, and the photos are very clear."

"But I want to see with my own eyes what kind of land you are preparing to develop."

"After seeing it, I’ll decide whether to participate."

Eden opened his mouth and closed it again.

After several seconds, it was as if he finally reacted, his face showing a mix of surprise and irrepressible excitement.

"Of course... of course you can! When would you like to go?"

"The sooner, the better."

Having said that, Satsuki turned her head to look toward the door.

Chizuru had already opened the schedule, and the expression on her face explained everything.

"Milady, you were originally supposed to rest today."

Satsuki pretended not to see it.