It is far from the usual puff piece, but is very specific about emphasizing that the idea that funding of phase 1 is secure. It seems a story designed to reassure those who have put deposits on phase 1 properties, the investors that hold the bonds, and to ensure the stories around the project don’t stop the next selling phase being underwhelmed, which could easily happen if people don’t have that most magic of things in such real estate developments: confidence. A significant suspicion of things not being right with the underlying solvency of the project would be potentially catastrophic for the Blue City. This release is clearly designed to stop the rot, and is a follow-up to the big ad placed several days ago showing pictures of the completed construction workers buildings, initial roads made, reassuring quotes from the Turkish contractors, and lots of happy workers eating lunch. News of the law suit and the squabbles between AAJH and Cyclone have, obviously, seriously concerned the bond holders, and probably some of the recent phase 1 deposit payers. Add the global financial meltdown, and the increasing competition for similar residential/golf club places, and there is clearly a significant threat to the solvency of the project which rumours had hanging by a thread anyhow with very little of the money left. The bond holders must be very, very nervous.
Hence the way this article stresses how the financing of BCC1 is independent of the shareholders. A sample:
The funding of Al Madina A'Zarqa's first phase differs greatly from other developments in the Middle East. Unlike most other real estate projects in the region, Al Madina A'Zarqa does not rely solely on the pre-sale of off-plan property to finance the development.
This provides investors and purchasers with the highest levels of confidence that the project is protected from all manners of challenge during its lifetime.
The nature of the press release can be judged on the adjectives: quote - firmly on course, progressing without delay, independent legal and financial structures, independently financed, operating independently of the shareholders, highest levels of confidence, protected from all manners of challenge, formally rated at investment grade, major international institutions … regard them as sound investment, strict loan agreement, monitoring and supervision … overseen by the Bank of New York, strict supervision of fund releases, backed by a robust and secure financial legal structure. The word Independent is used 3 times, and Supervision 4 times, in a 530 word release.
Personally, I’d feel a lot more confident hearing all this from an independent reliable auditor that I could subsequently sue in the USA. That it’s coming from the CEO of BCC1 hardly makes me think of this as a good thing. The fact that he’s doing it at all smells more like panic to me.
And I still can't believe they can get away with saying its 'just 30 mins from Seeb International airport.' How? By helicoper? An F1 car at 4 am?
More to come.