Chapter 260: The Los Angeles Real Estate

At the Palm Hotel in downtown Los Angeles, Arthur attended an event organized by the newly elected Mayor of Los Angeles, James Hahn, for the Los Angeles Reconstruction Committee.

Due to last year's Los Angeles riots, many areas suffered severe losses. The federal government and city government invested billions of dollars in reconstruction, attracting a large number of investors to participate!

TPG (Texas Pacific Group) Capital was one of the participating investment companies. Behind founders David Bonderman and Jim Coulter stood Robert Bass and Arthur Smith, respectively.

Robert Bass is currently the head of the Texas oil family Bass family. His brother Sid Bass is also a major shareholder of The Walt Disney Company.

"Arthur, you are truly accomplished at such a young age!" Robert Bass is from the third generation of the Bass family, which has many holdings in Texas and California.

Arthur smiled and glanced around. "Many Wall Street fund companies are involved. TPG Capital wouldn't have been able to grab a piece of the pie without the support of the Bass family."

Robert Bass shook his head, "Your relationships with the Governor, the Senator, and the Mayor are the key. TPG Capital securing the redevelopment commission for several blocks in Koreatown is worth a toast!"

Saying this, Robert Bass and Arthur clinked their champagne glasses. TPG Capital raised over $300 million for this endeavor, with Robert Bass's Bass Investment Company and Arthur Smith's CPG (California Pacific Group) Capital each investing $30 million.

The rest came from attracted investors, with TPG serving as the financing party.

"Arthur, I heard you are going to be the white knight for the Irvine Company?" Robert Bass laughed. Arthur Smith not only bought over 3,000 acres of land in Irvine but also collaborated with TPG and the Irvine Company to develop the land.

Arthur's 3,000 acres in Newport Beach, Irvine, were purchased from the Irvine Company. The Irvine Company was established in the 19th century by the Irvine family, from whom the city of Irvine gets its name. The Irvine Company owns most of the land in Irvine.

Arthur's lips curled slightly. "The Irvine Company was founded by James Irvine last century. A few years ago, Donald Bren, the Southern California real estate magnate, and his partners acquired 35% of the Irvine Company.

James Irvine's great-granddaughter, Joan Irvine Smith, reached out to me to sell the 3,000 acres of land when she learned of my interest in acquiring Irvine land.

She hopes to keep the family business intact. Now, Donald Bren is trying to acquire more shares of the Irvine Company to gain full control. Hence, she's looking for new shareholders to counter Bren.

TPG fits perfectly. The 100,000 acres of land held by the Irvine Company is a gold mine!"

Robert Bass nodded, "This makes it much harder for Donald Bren to control the Irvine Company."

Arthur was unfazed by this future West Coast real estate tycoon, but Irvine Company's assets were undoubtedly enviable. While it may not be evident now, in another decade or two, Irvine's development would be astonishing.

Arthur looked at Robert Bass, "Going forward, we'll need the Bass family's help. Donald Bren and his partners holding 35% of the Irvine Company's shares is problematic.

Perhaps we should rope in more partners. I heard Mr. Bass is close with the head of Blackstone, whose real estate fund is currently seeking investments?

Let's bring them in and drive Donald Bren out of the Southern California real estate market. TPG will be the biggest real estate player in the future!"

Robert Bass was momentarily stunned, then gave Arthur a meaningful look. "Your main business is movies and TV stations. When did you get interested in real estate?"

Arthur shook his head, "No, I'm interested in any profit-making business, not just real estate. I've even invested in beverages and games."

"Alright, I'll have David reach out to Blackstone. Their real estate fund is one of their key funds, and they would certainly be interested in the Irvine Company," said Robert Bass. He wouldn't underestimate the current Arthur Smith, given the high valuation of his Galaxy company.

Arthur also had strong ties with Senator Dianne Feinstein and was close to the new president. Getting involved in the Los Angeles Reconstruction project seemed straightforward!

David Bonderman was originally an investment advisor in the Bass family office. Even though he co-founded TPG with others, he was still similar to Jim Coulter. In the previous Russian Ruble short-selling, TPG mainly received financial support from Arthur Smith and Robert Bass.

After a while, Arthur and Los Angeles Mayor James Hahn started discussing the city's sports clubs.

"So, Arthur, are you making some moves?" James Hahn asked with a smile.

Arthur had previously mentioned his interest in Los Angeles's two NFL teams, the Rams and the Raiders, as well as the NBA teams, the Lakers and the Clippers.

"The NFL teams won't be sold unless something extraordinary happens. As for the NBA teams, I'll wait for the right opportunity," Arthur wanted to buy the Clippers from Donald Sterling but Sterling wasn't planning to sell.

"The Clippers plan to move to the Honda Center in Anaheim after the season. The Memorial Sports Arena, although built for hosting the Olympics earlier, is pretty old," said James Hahn. "Donald Sterling, to save money, wants to share the arena rental costs with other teams. You know, compared to the Lakers, the Clippers' revenue is significantly lower."

James Hahn supported Arthur's acquisition of the Clippers because Arthur planned to build a new multifunctional sports arena in Los Angeles. This wouldn't only help reduce unemployment in the city but also aid in economic recovery.

"I remember Donald Sterling has businesses in Inglewood and Culver City and has been involved in community building in South Central Los Angeles," Arthur said, patting James Hahn's shoulder. "For this Los Angeles Reconstruction project, the licenses of some companies need thorough scrutiny. Otherwise, if the government spends the money but no results are seen, it wouldn't be good.

The old charges of tax evasion against Donald Sterling should be looked into."

After saying this, Arthur left. James Hahn didn't expect Arthur to directly tackle Donald Sterling before trying to acquire his team!

*****

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