The concept is sound - the idea is to basically finance the land for the developer to then go ahead and market apartments and stuff.
The only issues are the cost structure - they are using 1400 - 1600 dhs /sqft as a selling price and at the moment the average sales price of JVS where the land is works out to be about 1000 /sqft at current levels. So unless they can get some financing options ie 10% down rest thru banks then I have a bit of a problem seeing how this will actually work in 6 months.
I have confidence that LS who is running with it is a clever chap.
Have thought about it but the world is a little risky at the moment so keeping the powder dry just in case.
As far as the pst dated cheques go - make sure that if you invest that you get copies of the directors/signatories passports to go with you cheques. That way any glitches can result in non- jail motivators to ensure success.
There are clauses in the contract about them letting you know a month before the PD date as to the situation. This implies that if the project is not on track you will have to hold off banking the cheques...
i could be wrong but that is how I read the situation..
Would be in but just not that brave at the moment - another EPI opportunity coming soon so maybe hold out for that...?
( and am not an EPI guy!)