Sorry to disagree but it's a sucker deal, it's a deal where the big player in town takes advantage of the smaller player by effectively exchanging its expertise for equity in valuable land holdings.
In simple terms, if you owned the most valuable block of land in the middle of town and a developer came along and put a proposition to you to develop a high rise building on top of it, but on terms where you put up half of the capital outlay and shared equally in the development costs and, at the end of the day, you only got half of proceeds of the sale of the real estate, what would you tell him?
Go forth and multiply?
Stagman
NKP Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
