EFTA Document EFTA01806869

From: Peter Mendelson Sent: Sunday, March 20,11. To: Jeffrey Epstein Subject: FW: Rio glug On 20/03/2011 18:23, "James Palumbo (MSHK)" < >OK, let's run the maths. >1. What's the total project cost, with refurbishment costs laid out in >detail? (You need to pin down refurb costs before you buy) 2. What will >be the monthly interest payments assuming interest rate rise and >conversion risk? >3. How do you propose to re-pay the capital net of tax? - remember >E1.5m net is about E3m gross because you have to gross up for tax 4. >Does your total income, less London living costs, less interest >payments, support capital repayments? >5. How long will it take to re-pay the capital, does this fit with HSBC >loan timescale? >You need to lay all these numbers out on a spread sheet, then fiddle >with some currency and other variables. Once you've done this you'll be >crystal clear about your commitment. My finance guy Richard, who I >think you know, can help you with the exercise if you'd like. >xxxxx >From: Peter Mandelson >Sent: 20 March 2011 20:28 >To: James Palumbo (MSHK) >Subject: Rio >I am sure you are right to be cautious about economy. Question is >whether my income will be seriously cut in bad scenario. I view Lazard >as secure - they want me/BWP/GC to do more for them eg in Russia. There >will be some sort of bonus at end of year. I can use this income to >make monthly interest payments and to pay down some capital if bonus is >reasonably substantial. >Double dip would reduce GC growth but not I think its general income as >we are not dependent on UK alone. >So I think my repayments would be very large but secure - I do not >reall= have other calls on my income in UK as I live cheaply. >There is an issue of repayment of capital but I am prepared to chance wrote: EFTA_R1_00154713 EFTA01806869 >that against expectation of future income growth. And will discuss with >bank in meantime. >I don't much like borrowing more than 50%, makes me nervous. I have >savings in UK and Bxl (which amount to around 400k) which I would much >prefer to keep for emergencies but that is not a necessity. Ben has >told me to approach bank and secure 500k of loan against the money that >my personal company, Willbury, has from book, speeches etc. Otherwise >would be secured against London home (at present no mortgage). >The issue for me is whether I want to sacrifice almost every other >income use in order to do Rio (including annual taxes, upkeep etc). >There are two answers to this. One, what else is there to do with my >income ? Of course I would like a bigger home in London but this is not >vital. I would like somewhere in country but again this is not vital, >and I would prob only use it once or twice a month at most because of >work and travel (and I can use Jacob's estate home that is already available to me). >Second, most important, in addition to wanting Rio base for R (we are a >partnership) I really like the place more than I expected. Sea, shops, >variety, services, exercise, people, weather, surrounding mountains all >positive for me. Language is handicap but not a disqualifier. Through >GC and Lazard I should be able to generate some Brazilian income which >helps on currency (Real over valued and costly for me). >Then there is the prospective property itself. It's not perfect and >needs lot doing including removal of walls, re-config of rooms etc. But >it has 40s charm, it is not new build synthetic/plastic, it is well >located and I feel warm every time I return to it (woman owner gave us >keys for weekend). Only 4 flats in building, one owned by architect who >would supervise project. It has rare , large outside terrace space. >Rio property prices are rising fast with football and Olympics >approaching plus general economic expansion. There is constraint on >supply: Ipanema etc lies between the mountains and sea so no room to expand. >So, many reasons to be negative andcautious, but others to be hopeful >and optimistic. >Also, you are looking at economics - always uncertain - but you are no= >factoring the emotional - the enjoyment, contrast, peace of mind, >generosity (as in your own Cat property purchase). The project would be >expensive but also fun. x >Reception: +44 870 060 0010 Fax: +44 20 7740 8654 Ministry of Sound >Group Limited. Registered office: 103 Gaunt Street, London SE1 6DP >Registered in England & Wales, company number 3299668 <?xml version=.0" encoding=TF-8"b <!DOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "http://www.apple.com/DTDs/PropertyList-1.O.dtd"> <plist version=.0"> <dict> 2 EFTA_R1_00154714 EFTA01806870 <key>date-last-yiewed</key> <integer>0</integer> <key>date-received</key> <integer>1300656586</integer> <key>flags</key> <integer>8590195713</integer> <key>gmail-label-ids</key> <array> <integer>22</integer> <integer>2</integer> </array> <key>remote-id</key> <string>143580</string> </dict> </plist> 3 EFTA_R1_00154715 EFTA01806871