Football Dynasty-Chapter 57: Investment and Loan

Richard didn't shy away from his idea to invest in Cisco. He immediately shared his thoughts on making Cisco the first investment for Maddox Capital.

"Here is the company, Cisco, that you requested," Smith said.

As expected, Barclays was highly efficient. When Richard requested information about Cisco, Smith made a call, and fifteen minutes later, an intern happened to be passing by and dropped off the related documents.

"Cisco? Hmm, it's not a company I've heard much about. What exactly do they do?" Harris from Lloyds asked.

"They sell multi-protocol routers," Richard said as he skimmed through the documents.

Cisco Systems was still a young company, primarily focused on selling its core product—multi-protocol routers—which allowed different types of computer networks to communicate with one another.

The term "routers" was unfamiliar to Taylor Smith and Philip Harris. Only after Richard explained did they begin to understand.

"Ah, so it's for network connections... I see."

Cisco's origins traced back to Stanford University. In the early 1980s, students and staff at Stanford developed technology that linked all of the university's computer systems, creating a device known as the "Blue Box."

The Blue Box used circuitry and software originally written by Stanford research engineer William Yeager. Thanks to its scalable architecture, Yeager's well-designed invention became central to Cisco's early success.

However, the company's early years weren't without controversy. Cisco's founders were forced to resign from Stanford, and the university even considered filing criminal complaints against them for allegedly stealing its software, hardware designs, and intellectual property.

It wasn't until 1987—just a year later—that Stanford officially licensed the router software and two computer boards to Cisco. Now, three years later, Cisco was preparing for its IPO on the NASDAQ stock exchange.

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Upon hearing the news, Richard immediately finalized the establishment of Maddox Capital, putting his work as an agent on hold to focus on this opportunity.

"Can I invest my full hundred million into it?" Richard asked.

Both Smith and Harris shook their heads—that's not how IPO investments work.

"If you want to invest a hundred million, there are several challenges and factors you'll need to consider," Smith said as he adjusted his tie, preparing to explain.

Richard listened carefully.

"Typically, IPO shares are allocated by underwriters based on various criteria. Large institutional investors—such as mutual funds, pension funds, or hedge funds—usually receive a significant portion of the shares," Smith explained.

Richard was actually lucky to have contacted them. There were no dedicated securities firms in the UK; instead, intermediary institutions for securities trading were typically handled by commercial investment banks—and Barclays was one of them.

First, Cisco's IPO offered 2.8 million shares at $18 per share, meaning the total value of shares available for purchase was $50.4 million. Richard's intended investment of $100 million was more than double the entire offering.

Even if he were able to access the IPO, he wouldn't be able to invest the full amount unless the offering was oversubscribed and additional shares were made available—which was unlikely for an IPO of this size.

Second, even if he managed to participate, he would only be allocated a fraction of the available shares, depending on demand and allocation rules

Maddox Capital was a newly established entity. Since his firm was still in its early stages, he might not qualify as an accredited investor or meet the priority requirements typically reserved for institutional investors. Therefore, he could buy shares on the secondary market after the IPO, once Cisco's stock began trading publicly.

Richard didn't mind the secondary market, so he instructed them to use the money to buy as much as possible, and Smith complied.

"However, as a client, I must warn you first. Up until now, computers have mainly been used in universities and companies," Smith said.

"That's true. Computers are expensive," Harris added.

Richard didn't explain further; he simply stated that he had made up his mind.

Perhaps they couldn't yet grasp the immense potential of Cisco. Why would individuals need a computer? And even if they had one, what could they do with it?

At present, Richard's cash in hand was £200 million. Adding his Mayfair house and hotel (worth £50 million), a plot of land in Islington near St. Mary's Parish Church, and his stake in Manchester City and WWF, his total net worth was approaching £300 million.

"Mr. Richard, before that, regarding the real estate—where exactly are you looking to invest?"

Richard raised three fingers. "First, the most important is the Britannia Inter-Continental London."

This was the hotel Richard had acquired in front of Grosvenor Square Park in Mayfair. When he shared his idea, both Smith and Harris were too stunned to speak—they were completely speechless.

"I think it's a good idea to demolish everything and build a new one. Moreover, the current building is centrally located, and I've already acquired all the properties in the surrounding area. I believe it would be best to expand the hotel to occupy the entire block, don't you think?"

They were left in shock, but to Richard, the idea made perfect sense. In the first place, the demand for hotels in London had always been strong—especially considering the city was on track to become the heart of the global financial sector. Naturally, its visitors would include bankers, investors, and businesspeople.

"I want to expand the grandeur and scale of the hotel, but the current Britannia Inter-Continental London simply cannot compete with hotels like Hilton or J.W. Marriott—at least not in the future," Richard emphasized.

He lowered one finger. "The second is King's Cross and St. Pancras," he continued.

Richard then turned to Harris from Lloyds. "I want to acquire all the land near the gas tank. and its the the surrounding land."

Harris gasped. 'Crazy, crazy, this is just too crazy!'

After the havoc of wartime and the Nationalisation of 1948, the transport of freight by rail suffered a speedy decline. In the southern part of the Goods Yard, most of the rail lines were lifted in the 1980's.

"You mean the gas tank near King's Cross Station? I didn't mishear you, right?" Harris asked once again.

The land Richard was referring to was the site of the Victorian gas tanks. This storage facility consisted of three massive gas tanks connected to each other, and these very tanks dated back to the Victorian era.

The tanks and the surrounding land were owned by a gas company in London. That being said, as you are aware, it's a gas tank—a gas storage facility!

This meant the area suffered from poor environmental quality, which had significantly undermined its potential.

Once a bustling industrial and distribution district, it had deteriorated into an underutilized site. Many buildings fell into disrepair, impacting local communities, who began leaving the area as the UK transitioned fully to natural gas.

In fact, the location was excellent, situated centrally in London. Several projects attempted to revitalize the area, such as Camley Street Natural Park, just west of the Regent's Canal. However, rather than improving, the area became known for its nightlife, prostitution, and crime instead.

"But these gas tanks are too huge."

As someone who worked for Lloyds and knew the ins and outs of the industry, of course, he was familiar with the gas tanks. After thinking for a moment, he decided to be direct.

"If you're targeting the gas tanks, you can't acquire them yet because they are still operational. That's the first issue. Second, I'll be very open with you."

"The situation with the gas industry is very bad right now. It's in decline. Based on my estimation, it won't be long before these tanks are decommissioned and cease operations. Until that time comes, no one knows what will happen to them. With their current specifications, they stand nearly fifty meters high, making dismantling them both time-consuming and labor-intensive."

"I know you have money, but to dismantle them on your own?" He shook his head. "Considering the special conditions of this block, forget it. It's not efficient. You'd just be wasting your money."

Richard was genuinely interested in the gas tanks because, when he passed over the area as a ghost, he saw that half of the derelict land had been transformed into a world-class complex.

The gas tank itself had been converted into an apartment complex, and its towering fifty-meter frame had become an iconic structure of the development. But after thinking about it again, he realized it wasn't efficient indeed—at least not for his current self, who wanted to ride the dot-com bubble era.

When he saw the half-finished project in the late 2000s, it meant the project had likely only started in the early or mid-2000s. This also meant he would have to wait for the gas tanks to cease operations first.

"Fine then," Richard said before standing up. He walked over to the nearest table, opened a drawer, and took out a map he had kept for a long time.

"If the gas tank isn't possible, then I hope Lloyds can help me acquire this place instead."

Both Smith and Harris turned their eyes to the map, noticing a red circle marking the location. As they realized what Richard was pointing at, they exchanged puzzled expressions.

"Another hotel?" they both asked at the same time.

Many people might not be familiar with King's Cross Station. However, if you're familiar with the Harry Potter series, then you would definitely recognize it. That's because this very location was used as a filming site. The starting point of Harry's journey to Hogwarts was King's Cross Station.

And in front of this station stood The Midland Grand Hotel.

"That's impossible!" Harris quickly denied. "That building is granted Grade I listed status—you can't buy it."

The Midland Grand Hotel opened in 1873 but closed in 1935 due to financial difficulties. It was later repurposed as office space by British Rail. In 1967, it was granted Grade I listed status, protecting it from demolition.

By 1990, the building remained vacant and in a state of disrepair, still under the control of British Rail. Given its condition, restoring the property would require significant investment. But wasn't that exactly why Richard had been saving money in the first place?

It was precisely because of its Gothic architecture that Richard wanted it. And if he could later push for its exterior to appear in the Harry Potter movies, wouldn't that make the hotel a landmark for tourists?

For example, turning it into a must-visit tourist attraction for Harry Potter fans by hosting themed events, exclusive stays, and magical experiences? How impressive would that be?

"But as I said, you can't buy a building protected by the government. No, it's impossible."

"Don't be so quick to argue," Richard waved his hand dismissively. "We don't know what will happen in the future. But for now, what I want is for Lloyd to connect me with whoever is involved with that hotel. That's not impossible, right?"

Smith, who had plenty of negotiation experience, immediately understood. Richard was like a hunter, patiently waiting for the right moment to strike. 'Impressive.'

The third location Richard targeted was Exmouth Market in Finsbury. As a native of Islington, he couldn't just leave his roots behind, so he had long been scouting for a prime area for development.

His choice fell on a four-sided building that was up for sale in Wilmington Square Garden. The west, north, and south sides were currently owned by the same group. However, the east side was occupied by a school, so Richard decided not to disturb the place.

Just imagine having three apartment buildings facing a beautiful garden, with a school right next door.

Your kids could simply walk to school, and when they wanted to play, they would have a safe, open garden right in front of their home. Isn't that the perfect place to build an apartment?

"Understood. I will contact our Real Estate Advisory quickly. So, regarding your loan..."