TheNewSongdoCitywas also to compete with the cities in Asia the likes of Mumbai,Beijing,Shanghai, Hong Kong,Seoul,Tokyo and Singapore when it came to attracting international businesses and retailers to set up their operations and regional head quarters in theNew Songdo City In order to attract the customers in the international market the city has to be self sustaining and planned like the traditional business hubs likeLondonandParis. In order to develop at such massive scale on land which had literally nothing o it, the Gale Company requires some serious financing which it procured through the Morgan Stanley Company for the initial predevelopment spending.
The Gale Company estimated the cost of theNewSongdoCityto be at somewhere ranging from $ 20 million to $ 26 billion according to the case. As the investment in the project was of significant scale and a single investor in the project would have found it difficult to support the project the Gale Company divided the costs that were to be incurred into different stages of debt. The different stages of the debt for the Gale Company based on the development of the New Songdo City pertained to four stages which were titled the Predevelopment Stage demanding $ 10 million of investment, the Land Loan stage demanding $ 90 million of investment, the Bridge Loan stage demanding $ 180 million of investment and the last stage of Land Loan which demanded a heft $ 1.58 billion of investment in to the project.
These are model essays please place an order for custom essays, research papers, term papers, thesis, dissertation, case studies and book reports.