‘Precisely!’ said Rafi. ‘So why couldn’t the Government put together a contingency fund, such that it did not have to go to the debt markets? Instead it could package up these assets into one or more of the new real estate investment trust vehicles – rather like the Swedish Government has done. Our Government could then issue shares in these REITs to those who require payment, compensation, etc., which would be straightforward as they would be listed on the London Stock Exchange.’
‘Yes, but I thought that the commercial property market and real estate investment trusts were in the doldrums at the moment.’ Aidan paused. ‘Sorry, I don’t mean to be a wet blanket.’
Rafi looked crestfallen. He thought for a moment. ‘OK, how about pepping up the market?’
Aidan looked at Rafi; a smile slowly stretching across his tired face. ‘What do you have in mind?’
Rafi’s mind was racing. ‘You could improve the demand for the REIT shares. What if the pension industry and those retiring could use these investments as an alternative to annuities? The REITs would have better yields than Government bonds and would appeal to many pension fund trustees and those with private pensions.’
‘That’s brilliant! No, better than that, it’s the nuts!’ enthused Aidan. ‘Real estate investment trusts would take off. Your sleight of hand would easily produce?150 billion for the Government to use, at a manageable cost. And, if they raised a bit extra they could use it to buy back gilts and keep prices firm.’
Aidan paused for a moment. ‘Your suggestion would need to be packaged properly and explained to the Treasury in terms that they understood. If it went hand in hand with a small drop in long interest rates and the markets remained stable for a couple of days, then the terrorists’ derivative positions would become untenable and they’d be wiped out financially.’
‘Hold on a moment,’ interrupted John. ‘Could you explain what a REIT is please?’
‘It is just like shares. A real estate investment trust is the property investment vehicle of choice for major investors. All it does is group a number of property investments under one umbrella. Investors can buy shares via the stock market, and they receive dividends instead of rents.’
Kate looked at Aidan and asked, ‘Realistically is this a possible solution to the impending financial problems?’
‘Yes, yes it is!’
‘Excellent! Rafi and Aidan, you work on your REITs idea and matters financial, while the rest of us get back to finding the terrorists and the missile launchers,’ said Kate.
The meeting had finished. In her relief, Kate stepped over and gave Rafi a hug.
He flinched and jumped back.
‘I’ve done it again… Apologies,’ she said, looking worriedly at him. It was as if she had invaded his personal space.
Kate turned to go. Rafi reached out and touched her shoulder; she turned and their eyes met.
‘I’m sorry,’ he said. I ran out of painkillers at lunchtime… My shoulder and back are rather sensitive, not to mention my wrist.’
‘I’m glad. No, that didn’t come out right – what I meant…’
‘Don’t worry,’ Rafi cut in.
Chapter 4
Kate sat at her desk hoping beyond all hope that crucial missing pieces of the jigsaw puzzle would start falling into place. Her instincts as a detective told her that her investigation was perilously poised. Rafi and Aidan’s reading of the position could all be a horrendous miscalculation and if their scenario was wrong, she would not only look a real idiot, but…
Jeremy’s phone rang, interrupting Kate’s thoughts. John picked up the call and put it on speakerphone. It was a call from Gareth, in Iceland. ‘How’s tricks? Sorry, Jeremy’s out at the moment.’
‘It’s brass monkeys here! And there’s no daylight!’ came the reply. ‘Got a nice hotel, though I’m not certain if I go a bundle on the cod liver oil or the roast puffin. What the heck! At least the locals are hospitable. I’ve hooked up with the Vikingasveitin, their Viking Squad, who seem to be a cross between our MI5 and the SAS. We’ve been inspecting all the shipyards and boatyards around Reykjavik – said it was a health and safety check. We just hit the bullseye at the last boatyard. There was a large yellowhulled motorboat on a slipway, inside the big boat shed. Didn’t look anything like the picture I got of Flying Goddess; they have altered her superstructure and given her a new colour to go with her new name: Golden Sundancer. I spotted Talal inspecting the boat with a geezer wearing a captain’s hat. We didn’t want to tip Talal off, so I’ve backed off.’
‘Good news that you’ve found Talal,’ said John.
Kate called across, ‘Any chance you could find out exactly what work the boatyard has done to her?’
‘While Talal is in there, I can’t just walk in and chat to the boatyard manager,’ replied Gareth. ‘It would be too obvious. As we speak, I am standing outside, waiting to see when they leave, which is why I’m so frigging cold.’
‘Rather you than me! But that’s great work – do keep in touch,’ said John replacing the receiver.
‘Now we’ve found Talal and the sheikh’s yacht, what we could do with knowing is when it’s due to leave,’ said Kate.
‘I’ve an idea,’ interjected Emma. ‘If I could borrow Aidan for a few minutes and if the people at the Icelandic boatyard speak English, it might work.’
‘What do you have in mind?’ asked Kate.
‘Well… Aidan is the type of guy who could afford a boat like Golden Sundancer. If he had a contact suggesting the Reykjavik yard… And he then asks the yard manager about the cost of some work on his boat… Hopefully the manager will be interested in new business and won’t consider questions linked to his last four or five fit-outs as suspicious.’
‘Good idea,’ said Kate, before adding, ‘John, see if you can get the contact details of the yacht broker – Jeremy’s journalist friend, Pete, has been using.’
‘No problems.’
Several minutes later, after a tortuous phone call, John had the broker’s name and phone number. ‘My God, that was like drawing teeth,’ he complained. ‘Journalists are too darn protective of their sources for their own good.’
Emma took the piece of paper from Jeremy and dialled the yacht broker’s number. ‘Hello, I wonder if you could help me. I’m the personal assistant of Aidan Gilchrist, of Maine Leadbetter, international financiers in the City of London. My boss tells me that you’re the agents to speak to concerning the purchase of a large powerboat… Good, good, thank you. Could you please give me the details of what you have on your books in the €3 million price bracket? If possible located in Scandinavia, which is where his partner is from… I should mention that he’s thinking in terms of spending a tidy sum on getting the boat refitted to her taste – lucky lady!’ Emma chuckled. ‘Yes, I can give you some contact details… My boss is a bit impatient. Could you perhaps fax me something at your earliest convenience? Within the next ten minutes would be great. Thank you.’
As good as his word, within five minutes the yacht broker had faxed through the details of three stunning motor yachts, ranging from twenty to thirty metres in length with prices between €2 million and €3.5 million.
Aidan, briefed by Emma, picked up the phone and spoke to the Reykjavik boatyard. One could see very quickly why Aidan was a top financial dealer. He oozed charm, but came quickly to the point. It didn’t take long before the boatyard manager was chatting openly and describing the boats they’d worked on.
‘So, have you refitted anything seriously fast?’ enquired Aidan.
‘Yes,’ came the reply.
‘Excellent.’ And before Aidan could ask, the shipyard manager helpfully proceeded to give a lengthy description of what they’d done to a Sunseeker Predator 75. ‘She’s had a complete refit; new colour to the hull. We installed long-range fuel tanks, upgraded the engines and the air-conditioning, done work to the bridge and superstructure to make the vessel more comfortable in inclement seas and installed a de-icing kit to help her with the local weather. Basically we’ve enabled the boat to go virtually anywhere at any time of the year,’ said the manager proudly.