Chapter 389: Taking a Big Advantage!

The Brown Bear Tribe's reservation had been secured, so Austin's work became even busier in the days that followed.

What he has to do now is join forces with his partners to put pressure on Montana's state government to take the "Project One land."

In other words, before the federal government went to trial, Austin and his partners had already sent a professional investigation team to inspect all the no-man's land belonging to the state government between Townsend and Toston, and planned "Area 1", "Area 2", "Area 3" and so on for these lands, and planned a total of seven relatively ideal and suitable land ranges.

The land with the highest geographical location and land value is, of course, the land marked as "Area 1".

The location of this land is to the west of Townsend, about a kilometer or so away from Townsend, and it only takes about 20 minutes to drive from Townsend. About a two-hour drive north is Helena, the state capital of Montana.

Area 1 is approximately 80 square kilometres, equivalent to 20,000 acres of land.

The area is surrounded by several old gold mines left over from the Western Gold Rush of the last century. These old gold mines have long been developed by some tour companies into tourist attractions for a fee.

In addition, there are several well-known tourist attractions in Montana, such as the well-known Transparent Lake Tourist Area and the Missouri River Scenic Area, near the "No. 1 Area". Drive through the city of Townsend in about an hour and a half by car. Then you will go to the famous natural scenery reserve - Edith Mountain Nature Reserve.

According to what Austin has learned, Montana's state government has been considering whether to put it up for auction since last year.

That's why Austin will aim at this "No. 1 area"!

Assuming that the market value of "Area 1" land in Montana is calculated based on "agricultural land", the current market price of pastures and farms in Montana is in the range of about $8,000 to $10,000 per acre. The market value of 20,000 acres of "agricultural land" is in the range of $160 million to $200 million.

However, if the market value of "Zone 1" land is calculated based on "industrial land" in Montana, the market price is based on about $3,500 per square meter, and the market value of 20,000 acres of "industrial land" is about $280 million when converted into acre units.

Not to mention that if you calculate it according to Montana's "commercial land", the value of this land will at least double!

In addition to the "No. 1 area" with the highest value. The other "No. 2" and "No. 3" all the way up to "No. 7". The geographical location of these plots of land is not bad, so the value of the land is only slightly lower than that of Area 1.

It can be said that this deal between Austin and Pei Pei was really successful!

The couple did not contribute a penny in the early stage. Just in the name of the Brown Bear Tribe. You can get a valuable piece of land from the state government of Montana.

Although said. In a series of projects to develop the Indian reservation, Pei Pei and Austin, including their partners, had to invest a lot of money later. But just from the cost side, the cost of land input can definitely be omitted.

It should also be noted that once the land is included in the "Indian Reservation". What kind of land does this land belong to is not decided by the state government, but by the "reserve government"!

The "reserve government" says it's "agricultural land", it's "agricultural land"!

Even if the "reserve government" says that it is a wasteland, it has to become a "wasteland"!

And the "reserve government" that will be formed in the later stage, don't forget that half of the rights are vested in the "management committee"!

Of course, Austin wouldn't really be so black-hearted and insist that land that is obviously valuable is a worthless "wasteland"!

However, in the later stage, when the Brown Bear Tribe was ready to participate in a series of development projects on the reserve by way of land discount, Austin, as a capitalist, could not have accepted the Brown Bear Tribe's land valuation of "industrial land" or "commercial land" to convert the share capital!

Moreover, in the early discussion with Austin, these Indian law blinders of the Brown Bear tribe could not think of whether the premise of "land discounted shares" was to convert the land value into "agricultural land", "industrial land", or "commercial land" - a hidden loophole in this detail.

Here I have to sigh - Matt Edelman, the consulting lawyer of the Brown Bear Tribe, is a fledgling and inexperienced!

He had been on guard before, and when he checked the protocol, he carefully checked it several times, and thought of all other problems, but he never found a hidden loophole in this detail!

So, at this point, Austin and Pei Pei have taken advantage of it again! (Pei Pei herself didn't know, but Austin didn't remind him if she knew!) )

If the land value is calculated according to "agricultural land", assuming that each acre is calculated at the highest market price of $10,000, the reserve land with a market value of $200 million obtained by the Brown Bear tribe is converted into equity capital based on the two clauses signed in the confidentiality agreement, "the land is discounted by 20%, and the condition for participation is a premium of 2% of the original stock price" -

The discount of $200 million is $20 million!

If the shares are subscribed at a premium of $10 million per share of Hercules Properties, a premium of two percentage points will be used, and the Brown Bear Tribe will have to subscribe at a premium of $12 million per share if they want to participate in the development of the entire reservation.

In this way, the brown bear tribe can only account for about 1.67% of the share capital of the entire development project on the reserve, and the proportion of the share capital is less than 2%!

It can be said that on this basis, the three percent of the equity subscription amount reserved by Austin for the brown bear tribe at the beginning is equivalent to saving another 1.33 percentage points!

Therefore, anyone who evaluates it will say that the deal between Austin and Pei Pei is simply too cost-effective and too successful! (To be continued......)

PS: Tonight weekend, but I'm honest at home! What a hard worker!

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