BBD: Downsview Site 2nd Round Update NewsWell...thanks for confirming that you have no knowledge of real estate...or business for that matter.
In order for a developer to construct a building...they would need to purchase land first.
Land is the most important ingredient for any real estate development project.
The land is paid for up front...before any development can occur.
Bombardier would get paid for the land it contributes to the project as its equity to the partnership.
La Caisse de depot would finance the project...including, if necessary, providing the cash to the developers to pay Bombardier for the land.
La Caisse would have mortgages to secure the financing it provides to the project developers.
Bombardier and La Caisse would collectively have a 50% equity interest in the project. So, for example, Bombardier's share could be 20% and the Caisse could be 30% (total 50%). The ratio between Bombardier and La Caisse would vary depending on various factors.
Please...please...Bombardier...get some expert real estate advice...and not from "
pierrelebel" and others on this board that are quite happy feeding firewood onto the Bombardier bonfire and continue having fire sales of Bombardier assets...
Enough...please!
Pinotblanc wrote: pierrelebel wrote:
justbull4u - "The developers would develop the property...Bombardier would be a passive investor/partner.
No cash for Bombardier to put in...just its equity in the land. Bombardier gets 50% of the proceeds...up front.
Are you serious?
Where in the world would you find a developer (or group of developers) who would agree to give 50% of the profit to a silent partner who provided no capital other than the land?
That makes no sense at all. It is a pipe dream.
Land development in Downsview is a very long term project where I would not expect to see profit for at least ten years.
Reality is simple: Bombardier needs money. They went through nearly one billion dollars last year. They need money so badly that they just issued a large common share ("B") issue diluting current shareholders equity. That money should last them until the end of 2019 if everything goes well.
Selling Downsview for cash would finally give them the cushion they could need just in case everything does not go as planned. Bombardier has no real option but to sell the land for cash - as much as they can get.
Some people will think it is a miracle but I fully agree with pierre.