Omagine

Company has signed a Development Agreement with the Government of the Sultanate of Oman. Omagine Owns 60%; Sultanate Owns 25%; Consolidated Contractors Owns 15%. Project to be developed on 245 acres of beach front land on Gulf of Oman. The estimated cost approximately $2.5 Billion. BNP Paribas To Lead Construction Financing Syndicate.

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Re: harrell

Omagine

over 16 years ago

in response to stock_shark1's message

Hi _shark,

Good point!

So far it looks like the Omani Government may be content to leave the purchase price of Userfruct Land at their established rate of $0.80 per square meter (up 23% from the previous level of $0.65), in which case, JOL will benefit from land appreciation.

COOL!

It also "aids negotiating leverage" and "borrowing leverage."

If, on the other hand, the Government's rate continues to rise (as it just did to $0.80), resulting in a constant spread to the appreciating land value, JOL margins would erode - all else equal.

I still believe that in the whole scheme of things, over time, land appreciation can be a two edged sword. Instead, OMAG's potential fortune will come from land development, property management, and the "integration of cultural, heritage, educational, and ENTERTAINMENT.

Also, exciting possibilities now exist in leveraging their "NEWCO" partners who represent "prominant Omani business men" along with their oncoming equity capital of $99 million.

You gotta love it.

Frank's cooking!

harrell