Battery inventor and clean energy investor Winston Chung has made a fortune over the years in his homeland of China.
He now appears determined to spend much of his money in and around Orange County.
Chung, 52, made waves in OC’s real estate market and social circles earlier this month when he announced plans to buy the Balboa Bay Club and Resort as well as the Newport Beach Country Club.
The deal for International Bay Club Inc.—a Newport Beach-based company that owns the high-end oceanfront yacht club and the nearby golf club—is estimated to be worth $100 million or more.
Chung has been busy here and in other areas of Southern California this year, with deals for recreational vehicle manufacturers, limousine makers and manufacturers of electric drive systems, among others.
A few more local deals—ranging from a classic car business in Fountain Valley to Newport Beach mansion—also are said to be in the works (see Luxury column, page 51).
When all is said and done, Chung appears ready to spend upward of $200 million on OC businesses and properties this year, according to sources.
RVs
That figure doesn’t take into account a deal reportedly worth $310 million that Chung inked in Riverside for a manufacturer of recreational vehicles, or a $10 million donation he made to the University of California, Riverside’s Department of Engineering.
How much of an effect those investments and donations will have on Chung’s balance sheet is a bit of a mystery.
Sources familiar with Chung told the Business Journal they weren’t able to give a good estimate on his net worth due to the complicated structure of his numerous foreign-based business interests. He’s the largest shareholder of at least two companies that are publicly traded in Hong Kong, according to reports.
Attempts to reach Chung last week were not successful.
Chung has been involved in the battery industry since his early 20s, according to regulatory filings. He currently runs Winston Batteries Ltd., a maker of lithium-ion batteries in China.
He has also served as president of Thunder Sky Energy Group Ltd., a Hong Kong-based maker of batteries for electric bikes, motorcycles and automobiles. He was removed from that company’s executive team in March; litigation regarding the move is ongoing, according to trade industry reports.
Chung’s investments in Southern California began in earnest this year.
Balqon Corp., a Harbor City-based developer of electric drive systems, lithium battery systems and medium- to heavy-duty electric vehicles, got a $5 million investment from Chung in early 2011.
Chung now serves as chairman for the Los Angeles County-based company, which trades on the over-the-counter Bulletin Board and counts a market value of about $32 million.
A registration statement filed by Balqon in July describes Chung as “the inventor of the lithium iron phosphate battery,” among several other products.
Familiar Customer
One of Balqon’s largest customers is Riverside-based MVP RV, a recreational vehicle manufacturer that Chung invested in early this year. His investment in MVP RV has been valued at about $310 million, assuming production goals are met.
MVP RV said it plans to export vehicles to China. It also expects to eventually incorporate an all-electric powertrain to vehicles it makes.
Sources familiar with Chung’s business strategy say his recent deals in Southern California are largely related to his efforts at expanding his presence in the area’s growing market for electric vehicles.
The electric vehicle business line is perhaps best represented locally by Anaheim’s Fisker Automotive Inc., a hybrid car maker whose first car, the Karma sedan, has drawn interest from celebrities and other wealthy customers.
Krystal Koach
Chung’s business investments here may not yet have the cachét of Fisker, but he appears to be acquiring a much broader line of products.
In Brea, Krystal Koach Inc., one of the country’s largest makers of limousines, ended a brief stint in bankruptcy earlier this year after Chung took a stake in a deal valued at roughly $9 million.
Krystal Koach is expected to develop new, green vehicles—presumably using Chung’s batteries—including luxury shuttle buses, funeral cars and security vehicles in addition to limos.
Another deal has been eyed in Fountain Valley. John Calicchio, owner of Euromast-ers Classic Cars, which restores vintage Porsches and also has a line of electric cars, said earlier this month that he’s met with Chung several times to discuss an investment.
Calicchio recently started up South Coast Electric Cars, a Costa Mesa-based business with a showroom located across the street from the Triangle Square shopping center.
Among other vehicles, South Coast is advertising an electric-powered Porsche Spyder replica that counts a cruising speed of 85 mph and a battery range of more than 100 miles.
Chung also is said to be looking into putting his lithium batteries into yachts and other marine vehicles. This month’s deal for the Balboa Bay Club could provide him with a prime locations for pitching those products to potential customers, sources note.
Chung also is expected to be eyeing at least one other local manufacturing-related business for an investment, according to sources.
Industrial Property?
He’s also toured at least one large industrial property in the Irvine area with an eye on purchasing the building, although no deal was reached, according to real estate brokers.
Chung’s interest in the Balboa Bay Club reportedly came after he stayed at the Newport Beach club earlier this year. At the time, he wasn’t believed to have a local residence.
Now, he could be nearing a deal to buy one of the area’s priciest homes, if chatter among area residential brokers proves correct.
Realtors expect Chung to close on a waterfront home that actor Nicolas Cage sold to Nevada casino and service station magnate Jerry Herbst in 2008 for $35 million.
That mansion now is listed by Herbst for $28.5 million.
