Hi A of AGood question. On reflection I wouldn't JV with anyone...

Hi A of A

Good question. On reflection I wouldn't JV with anyone unless they have a vested interest in driving sales (or more specifically WaaS income). This is the main reason why I think the cessation of Caterpillar MOU was a good thing. I could elaborate about Caterpillar but no need.

I therefore believe funding is secondary to FBR's objective of driving sales quickly and getting the economies of scale that go with size. If FBR had sales they could fund themselves (initially through cap raise, then through finance and ultimately cash flow if necessary).

Its for that reason, I believe a brick manufacturer (who ultimately have a desire to sell their own product) would make the ideal JV partner at the initial roll out stage. More specifically, they want it to work and would be trying to push WaaS just as much if not more than FBR.

I can't see the likes or ABN, BGC, etc (with so many factors going into building a home) being a JV partner

Similarly, I could see (if and) when the market has matured (ie. with many Hadrian's working) someone would have the foresight to establish a special purpose entity which enters into some type of licencing arrangement with FBR to employ staff, lease the equipment and undertake WaaS. Classic parralel would be the proliferation of labour hire firms in Australia compared to say 30 years ago.

That's my view.

NGNG