DBLyon wrote:Hmmm...interesting concept. I'm not sure I would do it at 8%. Personally, I'd much rather get that kind of return from a bond, and the government is a creditor of a much higher credit rating. I wonder how much they would buy them back for after 5 years; would the value have appreciated?
I think it is a clever way for the sellor/ lessor to get back their capital to do other projects with...a kind of 5 year loan at 8%. I realize I don't have all the details, but with the little info here, it looks to me like a win situation for the seller/ lessor and a place to park money for someone who hasn't thought of other investment options.
Some more details..
1. The buy back after five years, is at "Original Price", which means, they will buy it back at what you bought at 5 years ago...
2. "Guaranteed" interest is noted as follows;
- The 8% is Net yield years 1 & 2
- 10% projected for years 3 & 4
- 12% projected for years 5 & 6
(After all costs)..
- On quick research, I find the claim to have done similar concept at Glasgow International Airport (UK), with car parks running at "near" 100% occupancy.
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