Proposed investment: The city of Telosa is a futuristic Utopian city currently in the planning
stage that is looking for early investment in order to bring this project to life. Marc Lore, former
president of Walmart, is at the helm of the project and has invested much of his own money and
believes the city to be worth an estimated one trillion dollars and produce billions per year. They
plan on using this investment to physically create the city including both commercial buildings,
private residences, transportation, renewable energy based power grid and general infrastructure.
Areas of Concern: The city has an ambitious goal of construction by 2030 (six years away at
time of writing) and currently does not have a chosen state let alone a specific location to build
upon yet. This poses a massive risk as if funds were to be invested there is the potential of an
extended timeline and likely future of missed deadlines and rushed projects poses both legal and
financial risks for the firm.
There are also risks related to zoning, legal, and political complications that may prove to be
threatening to the firm’s performance. In typical construction there are many levels to getting
things approved by counties, districts, boards, etc, when it comes to building an entire city, it can
be expected to encounter these same roadblocks but on a much larger scale coming with higher
economic costs. This poses a massive threat to the firm and has the potential to extend the
investment timeline by years if not decades.
The city is looking for large investments from several industries and is well known that it will be
an expensive project. Many unexpected variables tend to come up during construction and
projects of any scale and can lead to more funds being required creating the likelihood of the
project simply running out of money and needing more, and if they are unable to receive funds it
will come to a halt on all fronts, essentially freezing our investment.
This investment is atypical of standard other commercial properties and may be difficult to
liquidate in the event of heavy losses because of how niche and potentially geographically
remote this project will be as there will be little demand for large commercial real estate in a
remote desert posing the risk of a total loss of funds.
Areas of Benefit: While Telosa certainly has a high risk, there is no questioning the massive
returns Telosa could yield if the city is successful. With the potential to rake in billions of dollars
per year, and the ability to scale, Telosa could bring enormous returns.
Furthermore an investment in Telosa is an investment in humanity. If the city is successful,
Telosa will be the pioneer of modern engineered cities, and will further increase the standard of
living for all those involved. Lastly, the construction of Telosa will create multiple new job
opportunities, and be a rich hub for development and cultural exchange.
A successful completion of Telosa would also yield extremely beneficial to our investment firm.
This is mainly due to the political and economic relations our firm would establish in Telosa,
which could bring massive success to the firm. Upon completion, our firm could be the go to
investment bank for any ambitious projects a successful Telosa would attempt in the future.
Which could also potentially yield huge returns for us
Investment Decision: Initially, putting money into Telosa sounds like a good idea, because it's
like building a city from the future. Marc Lore believes this city will be worth a trillion and make
a lot of money. To make a city work, they plan to build shops, homes, cars, trains, and even a
green power system with the funds invested. But there are big downsides, first, they want to start
building this city by 2030, which is approaching within the decade (six years away at time of
writing), but they haven't decided where to break ground yet. Development could be held up for
a long time if the project is to continue. Getting approval for small scale city projects is a
commitment and a long process on its own, let alone building an entire city on a short timeline
As a result, elements of building the city may take a lot longer and go over budget. To bring this
idea to life, they also need a lot of money from a variety of investors in several industries. The
project ceases if they run out of money and struggle to raise another round of funding. It could be
hard to recoup our investment if things go badly since not many people want to buy a big project
in the middle of nowhere.
The risk is simply too high for the potential returns and the firm would be better suited to invest
into more traditional commercial real estate where it can be easily liquidated and generate
revenue from tenants as well as standard real estate appreciation.