Hi Darren, Dee Dee, Sam and everybody else on this thread. I´ve been very interested in some of the points you have raised - most of which are justifiable concerns. (I work for Property Showrooms - not going to try and hide that) One of the reasons that this project has the potential to be very lucrative is that the client has the opportunity to benefit from the uplift in land status and development gain - irrespective of capital growth and the Spanish housing market (and Darren is in a better place geographically to determine the demand in the area). One extremely important point made by Dee Dee was the exit strategy. MC Consulting have committed to selling 1 in 10 of plots already reserved by clients after outline planning permission, and with a further 3.000 plots to be released, there is ample opportunity for this to occur (again, according to the marketing/demand). When considering the overpriced or overcrowded complexes of Polaris, Jumilla or Frondosa, the end product is very attractively priced - and should appeal to locals and ex-pats alike (and I think there is a limited market for commuters to Madrid Darren - wish I could underline certain words!). If the market is not strong enough to support the resale programme (and remember, there should be 3-4 years in which to do it) our clients will have to go to completion - but that is a risk that everybody is aware of when they go through reservation (and should be advised of by their solicitor before signing contracts).

The concerns about MC spending or running off with all the money are a bit unfair. The company has put a lot of money and resources into identifying an investment opportunity, organising seminars and training others (me!) on the product. Should they suprise us, they can´t take the land with them and , at the point before outline planning, a maximum of 500 investors will have each paid (up to) 35.000 Euros. 11.000.000 m2 of agriculural land at half the going rate would generate in excess of 30.000.000 Euros - and if you divide that by 500, each client would walk away with a minimum profit of 25.000 Euros. In fact, the worst possible scenario is that MC do not get planning permission by the end of 2009, and (contractually) have to refund all monies paid. Sure, they will have used some of the deposits for furthering the planning application and marketing, but they still own over 2000 acres of land from which they could generate enough capital to facilitate the refunds.

The bank guarantees were initially in place to protect the early investors whilst the 200+ parcels of land which were individually registered were being re-registered into one (very large) plot. Now that this is in the process of being done and plans to present the project to the town hall are nearly complete,the need for a bank guarantee is obselete. If you are thinking (Dee Dee) of the type of guarantee that a developer gives during construction - then this is entirely different. I too, could go on for ever about this, but I manage to bore myself!

Different investments suit different investors. This one is not for everyone, but should (underlined) the client get in early enough, and should (underlined again) the development go through as planned, then there is the potential for a significant ROI that is not now seen in Spain, and will only be seen "overseas" in more undeveloped markets with no safety net. I don´t believe Dee Dee is wrong from withdrawing from his/her reservation, nor that Darren is wrong for raising concerns (and at least he justifies them rather than just pour scorn). This type of investment is unique and the timings will not suit everyone as well as the elements of doubt aforementioned in this thread. I do believe that it is still not too late to get involved in this project and would ask anybody still considering it to weigh up the possible profit against the time involved to realise the proceeds (although the longer you leave it, the further down the list you are) and those issues raised above.

Darren - if you want to visit the site and meet with guys behind it, give me a call and I´ll see what I can organise. It may not change your mind, but would possibly give you a new perspective on the investment opportunity.

Regards,

Andy