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Latin America Investment News on Viva Tropical

Is it Over? Costa Rica’s Prestigous Monte del Barco Project Offers Lots to Pay Suppliers.

Article Summary:

The ambitious project in the Gulf of Papagayo tourist hub known as Monte del Barco Development is hanging in financial limbo. It needs its basic infrastructure to be laid so it can move forward, but so do the other tourist developments in the pipeline behind. Without Monte del Barco infrastructure, many other tourist projects will not be completed. In an effort to keep the development afloat, and build its roads, sewers, water and electricity, Monte del Barco is offering lots as payment to suppliers responsible for building this basic infrastructure. It is hoping this act will ensure its survival and the development of other tourists developments in the Gulf of Papagayo.

Photo Credit: El Financierocr.com

Original Article Text From El Financierocr.com via Google Translate :

Fund Providers Offers Lots

The real estate fund Monte del Barco, owner of a concession in the Tourist Pole Gulf of Papagayo in Guanacaste, opt for a consortium to provide design and construction suppliers in one part of his land, in exchange for progress on the works that would house a hotel complex.

The proposal is taking shape a year ago, following a first initiative, which sought the sale of land to investors, was unsuccessful as planned. “Given the current economic climate and housing market characteristics, such sales did not materialize,” said Lanzo Luconi, director of Aldesa Investment Fund, project manager.

The goal now is that a group of suppliers, responsible for the design, construction and inspection of infrastructure, receives lots as payment for the fund to build the basic infrastructure (roads, water, sewer, electricity).

This December 19 is scheduled general meeting which will decide, among other things, this funding mechanism. According to analysis by the SCRiesgo risk rating firm, has been positive results in working sessions with the consortium.

For example, Urbanizadora the lagoon has a first package of 203 lots of 1,000 square meters on average. In addition, cost estimates have been made, construction and sales absorption determine the financial feasibility of the project.

Urge to start
Monte del Barco is urged to fund the basic works to make way for development which will in Guanacaste. They have 419 acres: 395 private and other concessions by the State in the so-called Tourist Pole Gulf of Papagayo (PTGP). The award dates back to 1996 and as many other areas given in concession in this line of development of tourism, hotels, villas, condo hotels and restaurants are conspicuous by their absence.

According to information from the record of Monte del Barco in the Costa Rican Tourism Institute (ICT), the direction of PTGP him the schedule of activities approved in August. The beginning of in May 2012 with the Beach Club and are to end in November 2015. Then comes the construction of a condo hotel, marina, two condo hotels and villas.

Herny Wong, executive director of PTGP, said he asked the dealer more details of investments to make, since very general had submitted proposals that did not allow identifying each of the works and cost.

The total investment of about $ 213 million. Luconi said that for several months, the administration of the fund works on various proposals to reorganize the finances of the project and minimize the impact of the international environment.

Financial situation
SCRiesgo changed the risk rating of BBB-that defined in November 2010 to November prior to BB +. Monte del Barco posted $ 121.72 billion in total assets, of which 98% is land. The total liabilities totaled $ 30.39 million last September with the aggravation that by failing to make the sale of land, the fund continues to pay interest without incomes.

In developing the project, this shows progress children and their delay is due to the absence of fresh resources, either bank financing or sales pitches. Much of what will happen with this grant will be defined during the meeting of members.

Four Stages
Development: The Monte del Barco Real Estate Fund assumed the reins of the hotel project in 2005.

Proposal: The plan is to develop in four stages, a complex in Bahía Culebra, in the Gulf of Papagayo Tourist Pole.

Units: First, it plans to build the Beach Club, then would a hotel of 200 keys and a 28-unit condo hotel. Then he lifted a marina with 100 keys and 26 villas.

Goda: Investment in a Goda for the Monte del Barco fund and for condo building. I will total three concessions: Monte del Barco 3712 m² with 10 ha and 13 ha 7.181 m², and Goda with 6 ha with 7241 m². A total of 4,318,448.81 square meters.

Link to Original Article:

From El Financierocr.com

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