Wes Edens the co-founder of Fortress Investment Group along with Richard Branson of the Virgin group is poised to create Virgin Trains USA. The creation of the company is considered his pet project. It will cost a great deal of money, and it is expected the IPO will net the company nearly $500 million dollars for a company that is projected to be valued at $3 billion. This would be the first privately funded the railing system in a century. The rail systems are expected to have a line that goes from Orlando to Tampa Bay, Florida, and there is also a project that will create a connection between Las Vegas, Nevada and Southern California. The price tag for the project easily exceeds billions of dollars.
Wes Edens and Branson have already spent over two billion dollars on the rail system. It would require much more capital before the project is complete. By attaching the Virgin brand, Branson will be allowed to cross-sell, and he will receive a fee. Edens will own the majority of the company after the IPO. The main objective of creating the railing system is to create a connection that would be too long to drive yet too short for a person to cover the distance via a flight. Renowned experts believe in order for the railing system to work it must be accepted that the project will spend a lot of cash before it becomes profitable, and it may take a very long time.
About Wes Edens have a few obstacles that need to be hurdled before the company can even come close to projections such as 1.7 billion combined total for the Florida and Las Vegas sales. Many people will consider the 1.7 billion very lofty goals when you consider the Las Vegas construction has not begun, and there is a need for land. A potential problem the project must contend with is rising sea levels. It would be costly to protect the company’s assets from storms and rising sea levels. Due in part to tourism, it is expected the first and fourth quarters will be strong. Click here.