Investment

TOTAL: 84.15 MM USD

  • Property: 32 MM USD (38.95%) of the Cost
  • Land size: 800,000 m2 (contribution of the national investor)
  • External Investment: Foreign Investor Provides up to 52.15 MM USD (61.05%) of the Cost

Financial Indicators

IRR: 15%

Recovery Time: 5 years


Management Model

  • Local investor seeks partnership for the design and construction of a real estate tourism project. The investor owns land strategically located within a privileged touristic beach area in Ecuador.
  • The profit of the business is distributed in direct proportion of the investment:
    – National Investor Contributes with land 32.00 MM USD (38.95%)
    – Foreign Investor Provides up to 52.15 MM USD (61.05%)

Benefits for the investor

Through the signing of an investment agreement with the Ecuadorian government, recorded as a public deed, reception of benefits is guaranteed.

  • Stability regarding tax incentives for up to 15 years, renewable once (maximum validity of 30 years)
  • The company may request total or partial reduction of duties for any capital goods imported
  • Exemption of foreign exchange taxes on financing operations
  • Established conflict resolution mechanisms


Tourists

  • # domestic tourists: 302,143
  • # international tourists: 444,144
  • Main origin of international tourists: United States, Germany, United Kingdom and Australia.


Project Details

To offer residential lots to middle class families in an urban complex with high quality specifications in a landscape that is not easily found in the country.
The best location is reserved in order to develop it at the end of the maturation of the project.


Technical description of the Project

  • The project has a market study
  • Pre-feasibility studies conducted by national investor
  • The characteristics of the project are:
    – 800.000 m2 Land
    – 134.400 m2 Reservation Area Tourism
    – 366.080 m2 Residential Area
    – 250 m2 per Lot
    – 160 rooms (single, double and triple)
    – 30 family rooms (suites)
    – Broad access hall
    – Cafeteria
    – 2 specialty restaurants
    – Bar
    – Disco
    – Games Room
    – Convention hall
    – Swimming pools for adults and children
    – Tennis courts, volleyball and basketball
    – Beach facilities
    – Inner lagoon
    – Wide green areas
    – Parking for 200 vehicles

Note: Further details of the project can be found in the project pre-feasibility study.


Accessibility and Utilities

  • Accessibility: the Sun Route (Ruta de Sol) provides access to the project
  • Utilities: water, electricity, telephone, sanitary and rainwater channeling


Regulatory Framework

Organic Code of Production, Trade and Investments, COPCI


Location

  • Province: Santa Elena
  • Canton: Palmar