16 January 2015 – Cinco Días
A Qatari investment group with close ties with to “important” investment fund in Spain that has invested in Europe in recent years, has expressed its interest in the Marina d’Or Golf project, according to a statement released by the company.
The group visited the Marina d’Or-Holiday Resort at the end of last year. The delegation expressed its interest in getting to know the investment project “first hand”, which will be the “Greatest Holiday Resort in Europe and one of the largest and most spectacular resorts in the world: Marina d’Or Golf”.
The investors attended several presentations made by the company over a two-day period and visited the properties that comprise the current Marina d’Or-Holiday Resort – 5 hotels, 8 leisure parks, the largest scientific seawater spa in Europe, osmosis and cogeneration plants – as well as the land onto which Marina d’Or Golf will be expanded.
In this way, the Qatari investment group obtained an “in depth” insight into the current facilities, as well as the plans for their expansion under the development of the Marina d’Or Golf project.
Similarly, the delegation met with the president of the Marina d’Or-Holiday Resort, Jesús Ger, who, along with his finance team, provided information about the economic and financial aspects of the project and its investment yields.
The company explained that it expects its total investment to amount to €4,500 million, which will include not only the acquisition of shares in the parent company, but also funding for the construction and development of the new Marina d’Or Golf project.
Nevertheless, according to the project’s Financial Plan, the investors will need to spend less than €2,100 million during the first three years of development, since the various hotels and facilities that will open as part of the project will co-finance some of the investment costs; the remainder will be financed by a bank from the Qatari group’s circle and by funds generated from the operation of the various hotels already in operation.
The sales price of the shares in the parent company amounts to €1,300 million and the Qatari investor group is expected to acquire 50% of the total, which means that the initial outlay to begin the project will amount to €650 million. Another possibility under consideration is the acquisition of 70% of the parent company’s shares, which would increase the upfront investment to €910 million.
The strategic plan for the transaction forecasts that construction would begin one year after the transaction is signed, with completion of 20% of the total project over the following two years; construction of the remaining 80% would take place over the next 5 to 10 years, depending on demand.
Marina d’Or Golf will include almost 130,000 tourist-hotel beds, including 3*, 4* and 5* hotels, tourist apartments and apart-hotels. The project will generate 30,000 direct jobs and more than 45,000 indirect jobs.
The interest shown by the investor group is “patent” in that both parties have already agreed the dates for the continuation of their negotiations to implement the Marina d’Or Gold project, reported the company.
Original story: Cinco Días
Translation: Carmel Drake