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Interesting - paid $1.15B and currently up $0.5B with 60 years to go, so the meters are generating $1.65B per 15 years, which'll be $8.25B (assuming no price in
by HarHarVeryFunny 3y ago
Interesting - paid $1.15B and currently up $0.5B with 60 years to go, so the meters are generating $1.65B per 15 years, which'll be $8.25B (assuming no price increases) over the 75 years.
If you do the math, going from $1.15B to $8.25B in 75 years is only a 2.66% annual rate of return.
I wonder if the Saudi's saw this as a good investment, or a good PR deal ?
- lotsofpulp 3y agoWhy assume no price increases? Also, parking meters in a car centric region seem like they would be closer to government bonds than equities in terms of risk profile, so the return would need to be compared to something like that.
- HarHarVeryFunny 3y agoI just meant the math assumes no price increases. I'd have to guess that there are some agreed-upon price increases in the deal (2.66% too unattractive), and I see there was a recent failed lawsuit by Chicago drivers protesting high prices (downtown $7/hr), so they probably have gone up.
- Arrath 3y agoI vaguely recall reading about clauses granting lost parking spot profit for e.g. streets being closed for parades or construction that were pretty heavy handed as well. I wonder how true those were.