This is not a new thing.  It has been done over in the USA and is supposedly a success.  So will it work over here?  Well you’ve got to look at:
 
1. The promised yield
2. How easy it is to increase the rent or will it be regulated
3. Whether its charged by room by room basis or a flat rent for the whole building
4. Whether there is a trend of imprisoning criminals or not
5. What you can do with the building if it doesn’t work out as a prison further down the line. i.e. could it be turned in to flats or a private hospital etc.  Basically is there a plan B.

Based on the answers above only then could you determine whether it’s a goer.  It will be amazing to see the prospectus when it comes out.  I will keep you informed.

Ajay.

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Posted on: 26th February 2008 @ 12:23:00