Business Case

Economic and Financial Solidity of the Park project (and therefore the Cluster).

Notwithstanding the current deep Italian economic/financial crisis, the Park and OMC projects are economically and financially solid projects because of their solid fundamentals and facts:

  1. Very extensive formal financial business planning by internal top consultants, and top global consultancies like Ernst & Young, REAG, and Scenari Immobiliari;
  2. Detailed MOUs with 14 locating and/or co-investing partners of the Park, Labs and/or Cluster.
  3. The project may be considered financially by 80% a real estate operation as it involves a very profitable mixed-use development, and media/video production studios are mostly a space and equipment rental business, which carry risks much lower than other businesses.
  4. The Municipality Formello where the projects are located has the highest per-capita income in Central and Southern Italy, with a population that saw a 70% increase in the past 10 years and keeps growing, and its neighboring districts have similar characteristics.
  5. In time of credit crunch, we believe the Park project has high chance to appeal also to non-Italian financial institutions for the financing of the 50-70% of total costs that – as it is usual for real estate development projects – usually is contributed by financial institutions, for the following reasons:
    1. The international nature of our 14 co-investing partners in web/video media production and innovation, the unique locational advantage of the real estate development operation, the involvement of a world class consultants
    2. Foreign financial institutions (private and foreign) have started scouting Italy for opportunities as Italian banks are so low on cash, that they cannot take advantage of profitable lending/equity opportunities.
    3. We have established solid contacts with certain northern African and eastern sovereign funds, including a former (post-revolution) director of the Libian Sovereign fund.