ann: fml to raise 227.5 mill via placement, page-68

Great reading today - enjoying all the points of view on this.

I’ve had a bit more of a think about this and decided to think about it in the following way.

I have a block of land of land with a small loan over it in an area where houses get a good rental return and appreciate at about a 10% pa rate however I don’t have the cash to build. The land value is appreciating at about 8% a year.

If I borrow money to build then rent return and Capital Gain have me running at a loss for a number of years until I move into a positive return cycle.

If a wealthy friend comes along and offers me the money to extinguish my loan and build the house immediately, on the proviso that he gets 51% of the rental profits and Capital Gain on the property when we sell it, do I take his offer?

Am I better off taking his offer now and making money now or should I take out the loan and wait perhaps years, (if ever), to get into a profitable situation?

Or should I save for years and then perhaps build?

I think my best choice would be to take the money now, build now, and start making a profit now. On a risk management side I would monitor my wealthy friend and if think things are started to sour or I wasn’t happy with the progression I would sell my share and move on.

Therefore I think this deal is a great opportunity for myself at the moment however if I detect that Shandong are starting to get too restrictive with the management of FML (watch for executives leaving for other pastures) then I will sell and move on.