I think there's a disconnect here... somewhere.
ProGreen paid $500K / 5000 acres = $100/acre.
Yes, the price of that "comp" land is $1584/acre, but not 3x what ProGreen paid... It's nearly 16x what ProGreen paid
And I'm saying the land that we have is prime oceanfront, whereas there is very little of that "comp" land that can be used in any contiguous area for "oceanfront" - so to cherry pick a comparable piece of land - as ProGreen's Cielo Mar land - would be multiples of the cost. I picked a conservative multiple of just 2x, which gives 2 x $1584 / $100 = 31.68.
So this says the land that we have - in the raw, at market list price - is worth 31.68x what ProGreen paid.
How is that possible? As explained by Jan, and also by Flavio, the "extended land owner family" had no way to monetize the property - no money, no expertise or experience. So, with the deal, they retain 49% ownership, but ProGreen funds the development, starting with a Master Plan, and then... selling lots, building, leasing commercial properties, etc.
So the original land owners decided not to hold out for a buyer with the abilities, vision, experience, and strategic relationships in Mexico that ProGreen has, to offer to pay the market price, presumably in the range of $15M - the calculated/comparable market value at list price (or probably would be negotiated lower, depending on the urgency for money).
Instead, they accepted $500K up front, and will share in the profits with their 49% ownership. Great "win" for the land owners, with a very real potential for 100's of $ millions over time. Great "win" for ProGreen, with the potential for 100's of $ millions in value with a completed/approved Master Plan, and likely much more in revenue and profits over the long haul. And it couldn't have been done without the land owners buying into the vision for Cielo Mar - ProGreen doesn't have the assets, funds... the financial wherewithal to commit to multiple $ millions for the purchase of that property outright.
But take control and own 51%... by paying about 3% of the market price? That works great! That's like me buying 10M shares of stock from you today for 3% of the market price - say a fraction of a penny - and splitting proceeds with you 51/49, say, 5 years from now with the market price of a dollar or two or five per share. I like it!