[Chapter 59: The New York Post]
Investing in business to avoid taxes.
This was actually one of the many tax avoidance strategies Kurt mentioned when they first met.
Normally, most celebrities hearing about investing in low-profit industries just to dodge taxes and gain a bit of charity or social goodwill would never consider it.
For tax avoidance, Kurt's method of channeling money overseas was actually more practical and cheaper.
If they wanted a charitable image, they could simply donate to charity foundations in front of the media. A $5,000 or $10,000 donation could earn a solid reputation in charity circles.
Putting money into real business ventures was almost unheard of among entertainment celebrities.
Kurt had mentioned it casually, not imagining that his client's interest in the manufacturing industry.
Orlando brought it up briefly, and Kurt elaborated a bit more.
And that led to today's visit to the old industrial district at the Brooklyn port.
Seeing Orlando still hesitant, Kurt shrugged. "Mr. Keller, it's up to you. But personally, I think picking up some plots here is a good long-term investment."
"How so?"
"Many factories around here have already been snapped up cheaply by real estate developers. They're betting the industrial zone will completely decline and eventually be redeveloped by the city into residential neighborhoods. When those factories get torn down, they'll build office towers and high-rises. Just the land use change from industrial to residential/commercial can multiply land value tenfold or more, not to mention the development profits."
"Shit!" Orlando said, "If that's the case, how could I ever get land from them?"
He figured if what Kurt said was true, those developers with close ties to politicians would push hard to convert the area.
The potential for tenfold or more profit would tempt capitalists to trample any law.
Could a small player like him, backed only by Daisy, stick a hand in without getting cut off?
"You could get land because these transitions take at least ten years. Lobbying the government is just the first step. There's pollution cleanup, infrastructure upgrades, resident protests, the manufacturing lobby... Each of those is tough to deal with. Getting in now is totally doable. Just don't take too much or you'll get targeted."
Orlando mulled it over.
As someone reborn aware of the real estate market's boom to stagnation, he knew real estate was the lifeblood in any country and top real estate players were always multi-billionaires.
"This whole area's about eight acres."
Kurt roughly circled a small group of old waterfront factories with his finger and said, "I haven't asked the price yet. Not sure if you'd be interested. But last year, a shipping company paid $1 million for four acres nearby to convert old factories into a warehouse. This spot we're looking at isn't as good location-wise, but it's double the size. I figure $1.5 million should get it."
"What? Did you say how much?"
"One point five million dollars."
"I'll take it."
Orlando had expected a sky-high price but was surprised it was just over $1.5 million. So cheap.
Even if he bought it and did nothing, he'd still pay property tax yearly, but in twenty or thirty years, redeveloping would easily multiply the value a hundredfold.
"Let's do it. Buy the land first. Whether or not to reopen the factory can come later."
Orlando waved his hand, and someone pulled a car up. Kurt got in too.
The bodyguards and other staff took another car -- already looking the part of businessmen with some capital.
---
The drive back to Manhattan from Brooklyn took some time.
Darkness had fallen outside. Orlando lit the reading lamp in the backseat and casually grabbed a copy of the Wall Street Journal.
He always believed information created value.
For stocks and finance, getting news faster meant big money.
His ability of revelation was basically being one step ahead on information.
He flipped through the paper and suddenly spotted a familiar name among the many Wall Street investment banks: the New York Post's Peter Kalikow drowning in debt, facing bankruptcy.
Orlando wasn't familiar with Peter Kalikow, never heard of the name.
But he knew the New York Post.
Because this newspaper was the first major outlet publicly researching his... well, the size of his "equipment."
In the entertainment section, over the past two months, they had coverage about him almost every issue.
Starting with the stripper's smear, then the Madonna hookup rumors with vivid detail. Most recently, size studies and his "romance" with Shania.
The paper never missed a beat.
Because the New York Post started it all, now lots of tabloids were snapping photos, trying to figure out exactly "how big" he was.
Rumors even said there was a $300,000 reward for clear photos.
Orlando joked he might just snap a photo himself to claim the reward.
Three hundred grand! His first signing bonus was barely that.
And the Post really was one of the major local dailies.
He never expected its owner was about to go broke.
Orlando examined the article carefully.
[Real estate titan Peter Kalikow is facing serious financial trouble. Insider sources say his company H.J. Kalikow has defaulted on large bank loans due to slumping Manhattan office and apartment projects and is rushing to sell assets to keep cash flow afloat.]
Looks like Donald's about to go belly up too because of this.
Having been reborn for a while, Orlando had noticed the overall U.S. economy was very weak during this period.
Economic data across the board was poor.
It looked like another Great Depression was looming.
Honestly, if the old Soviet Union had lasted another ten years, the Cold War's winner would have been hard to call.
[Peter Kalikow owes over $500 million to banks like Citibank and Chase, with some loans already in default. His $37 million 1988 purchase of the New York Post from Australian tycoon has added to his woes due to long-running losses. Rumors say he is quietly seeking buyers, but with poor economic conditions and print decline, investors are cautious. Besides the Post, he plans to sell Midtown Manhattan office tower and East Side residential project stakes, but offers are far below expectations.]
The New York Post originally was a large broadsheet with roots back to the New York Evening Post, founded in 1801 by Alexander Hamilton, making it one of America's oldest papers.
In 1977, Australian mogul Rupert Murdoch bought the paper from Dorothy Schiff.
The Aussy's attempts to fit into American society never went smoothly.
Two years ago, due to antitrust laws and other restrictions, Murdoch had to sell the paper, and it ended up with Kalikow.
Kalikow's main business was real estate.
Buying the New York Post was just an investment, a convenient way to add free publicity to his real estate projects.
Clearly, Kalikow's plan went sideways.
Not only was his real estate business floundering, but the Post was also losing money over the long term.
[... Analysts warn that if Kalikow fails to negotiate debt restructuring with banks, bankruptcy is likely. The crisis raises concerns about the Post's future -- if it closes, New York will lose its only major conservative daily.]
Reading this, Orlando couldn't help raising an eyebrow.
What the hell!
A paper that constantly covers celebrity gossip, employs a dozen private detectives and former FBI agents to study his size, is actually the bastion of conservatism?
"Kurt," Orlando suddenly said, turning from the window at Brooklyn's night skyline to the business expert beside him, "How much would I need to pay if I wanted to buy the New York Post?"
*****
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