Chapter 105: Every Inch Worth Its Weight in Gold

Both men smiled knowingly, each with their own agenda. Tao Zhiming spoke openly, “Brother Shuifeng, I’m merely speculating about your plan, which I believe is related to the privatization of the national railway. Not long ago, the Mori Group announced the Roppongi New Town project, which is probably connected. Also, your plan seems to involve the Shiodome area—is that right?”

Kinoshita Shuifeng’s smile never wavered as he praised, “Impressive! Any other guesses?”

“That’s what I was about to ask,” Tao Zhiming said curiously as he looked at him. “Brother Shuifeng, are you planning to accept investment from a major conglomerate, joining their camp to take a share of the pie from the railway’s privatization?”

Shuifeng replied calmly, “You could say that.”

“...That makes sense. There are many ways to cooperate, not necessarily by joining a single conglomerate,” Tao responded frankly. “Judging by how long the Yuwa Group took to decide, it seems you had no contact with them initially. Could it be that you’re already convinced they’re adversaries?”

Shuifeng’s question reflected his answer: “Did you detect any danger from Yuwa’s proposed collaboration?”

Tao frowned, pondering as he paced the room. “If Yuwa is the enemy, their large financial offer appears to exceed the land value of the commercial district, aiming to gain controlling interest. But their real intent must be to disrupt your plan.”

He turned to Shuifeng. “Brother Shuifeng, why don’t you outline your general plan? Where should I begin my analysis?”

Shuifeng patted his knee, stood, and pointed outside the window. “The Shiodome land represents the greatest disparity between current worth and future potential among national railway assets. To acquire it, the future railway subsidiary would have to shoulder massive debt.”

“Of course, there are ways to manage that debt. But more importantly, no single power currently has the funds to directly purchase national railway assets. Their value is immense, and the railway will inevitably hold shares in each subsidiary. Repaying debt through dividends or selling part of these shares is the railway’s current hope.”

“However, owning those shares means the national railway asset liquidation group will have a voice on each subsidiary’s board,” Shuifeng said, then looked at Tao. “Now, do you understand why the Mori Group and I are making these moves?”

Tao nodded thoughtfully. “So, if you don’t take that land, the debt burden is much lighter. But if you do, not only will you face trillions in extra debt, you’ll also be constrained by the liquidation group’s oversight in future operations?”

“Exactly.” Shuifeng continued, “Now, what do you think is the purpose behind my pushing the ‘Saijo Gokurakucho’ project and Mori Taijiro’s announcement of the Roppongi New Town plan?”

Tao recalled the fate of the Shiodome land and smiled. “Could it be to inflate land values across the entire port district, making that piece so expensive no one can afford it, thereby shifting the debt burden onto the liquidation group? Or is there some power strong enough to acquire it outright?”

Shuifeng shook his head. “The debate is still fierce, with no conclusion yet. The Cabinet hopes to push railway reform legislation through this year, but detailed reforms will wait until next year. Regardless of the outcome, the ‘Saijo Gokurakucho’ plan will increase the value of the leverage I hold.”

“...I didn’t realize the stakes were so high,” Tao sighed. “Honestly, I only considered these issues because of the bookstore and dance hall locations. Brother Shuifeng, since you lent me the money, why not just tell me where to buy real estate?”

Shuifeng chuckled dryly. “Where in the current port district is easy to buy? You even asked Inoue Ryu for triple the price originally—triple! The cost was too high.”

“But Brother Shuifeng, haven’t you already started working on this? I think the value rise will be more than triple.”

“I’m gambling on the future too,” Shuifeng took a deep breath. “Taro, if you want higher returns, here’s a target.”

Tao’s eyes brightened. “I’m listening.”

Shuifeng handed over some documents from his desk. “Between the former Shiba Rikyu Garden and Hama Rikyu Garden lies Takeda Manufacturing. It’s an old factory with over thirty years history, having bought land there long ago. Since last year, their export business has suffered greatly, straining their finances. And because they’re caught up in the Shiodome dispute, their financing has been severely impacted.”

Tao flipped through the documents, puzzled. Shuifeng continued, “See? The bank’s financing costs are currently the lowest, but all banks have been ordered by the conglomerates to reject their loan applications. The reason is simple: the big groups want to acquire that land themselves, forcing Takeda Manufacturing into an early crisis and minimizing costs.”

“Tsk tsk tsk,” Tao marveled, “their business is losing due to exchange rate fluctuations, but owning that prime land has made them a fortune? Over 3,000 square meters, and someone’s already offered 7 billion yen? That’s 2 million yen per square meter—truly precious land.”

“The Shiodome land is much larger and wholly owned by the national railway, so it’s even more valuable. To the layperson, it’s estimated at 3 million yen per square meter; insiders privy to privatization discussions value it at 5 million yen per square meter. That’s truly priceless land.”

Shuifeng’s eyes burned with intensity. “See? If we acquire Takeda Manufacturing, it can be merged directly into the future Shiodome property. Currently, Takeda’s president, Takenao Takeda, doesn’t understand why banks keep finding excuses to deny loans. He’s outright rejected all acquisition attempts by major companies.”

Tao gasped. “Brother Shuifeng, you’re not asking me to get involved with that land, are you? That would make me a target for all parties.”

Shuifeng returned to the sofa, smiling. “Your involvement is known only to me and Hiroshi Omiya for now. To others, you’re just an unwitting player who stumbled into this contest.”

Tao shook his head repeatedly. “With their power, if I get involved, they’ll investigate me thoroughly immediately.”

“That’s the fascinating part. If you succeed in acquiring Takeda Manufacturing, your background will certainly be uncovered. But by then, everyone will know I have another bargaining chip. Few know I lent you 1.5 billion yen. And since the Shindo Group will manage the dance hall, directly tracing back to you won’t be easy.”

“...Nothing escapes you, Brother Shuifeng,” Tao admitted warily.

Whether it was because Daiki Suzuki persuaded the boss to reveal their subsequent cooperation plans, or because the Inagawa-kai’s control over subordinate groups had reached a certain level, Tao had initially seen this as a long-term lever to help Suzuki personally.

Shuifeng leaned forward. “So? My personal interest is simply to gain another bargaining chip for future negotiations. Don’t worry—the money is lent to you. If you manage to acquire it yourself, I’ll still need you standing with me. You needn’t fear my position.”

Tao pondered deeply.

What does it mean not to worry about your position?

Though he indeed wished to ally with Shuifeng and share the spoils, this little brother Shuifeng was no fool.

This matter couldn’t be decided rashly. If it backfired, the consequences would be dire.