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Latin America Investment News on Viva Tropical

El Salvador: Royal Decameron Chain to Invest $60 Million

Article Summary:

Royal Decameron plans to invest up to $60 million, as the resort group announced the expansion of its presence in El Salvador.

Photo Credit: El Mundo

Original Article Text From El Mundo via Google Translate:

Decameron Build Two More Hotels in the Country

The investment plan for the coming years is $ 60 million. 75% of the funding will come from the securitization of assets of $ 45 million to 10 years.

Lucio Garcia Mansilla, president of Royal Decameron Group yesterday announced a plan for short-term investment in El Salvador for $ 60 million, which includes construction of two new hotels and the expansion of existing in Decameron.

“The most important thing is that we have enormous confidence in El Salvador and we have shown through the years and now it is doubled,” he said.

The announcement came after the company conduct a successful securitization of $ 45 million, which will fund the projects announced (see side note).

The first project is run Decameron Salinitas enlargement, with the construction of 120 new rooms, thus reaching 672 rooms.

The investment would amount to $ 50,000 per room, so the total payout would be about $ 6 million.

“The expansion would more rooms only, which is the cost. Public areas are sufficient to cater to customers, “he said.

Under the facility, the construction of the hotel in the heart of the city of San Salvador is the second project in the list. “It could be a Hard Rock Hotel, as that just opened in Panama and has been very successful,” said Mansilla.

Being a four-star hotel, the construction cost of each room around between $ 110,000 and $ 115,000, excluding land, he said.

He noted that already have two sites identified for construction, although still owned by an international bank.

The idea is to attract tourists to the city convention, while the package would include stays in the Decameron Salinitas. Tourism would be mixed city and beach, he said.

The group also includes the construction of a hotel on the beach Icacal in Usulutan, would involve an investment of $ 12 million.

The concept will be similar to Sonsonate, with the difference that offer individual cabins. “I’d have about 300 individual cottages, office centers, spa and conference room,” he explained.

But this project is the one that presents major obstacles, as the Government has not yet asked the Legislature to permit sale of land in the area, explained Manuel Peña, legal advisor to the president of Decameron.

Or failing that, to enable investment, would have approved the Law on Public Private Partnerships, which is still shelved in the Legislature.

672 With the new rooms, the Royal Decameron have 672 quarters available.

Prival opens in the country’s stock market
The brokerage house, opened yesterday Prival Securities on the Stock Exchange of El Salvador, with the issuance of $ 45 million Royal Decameron.

The successful securitization, which just seven minutes after leaving the market already negotiated $ 41 million, was to the company Ricorp securitization.

“We are proud to participate in the placement process for the issuance of Royal Decameron, in which participating local investors and regional, through Prival Securities, generating a lawsuit for $ 35 million,” said Eunice Menendez, CEO Prival Securities.

According to details of securitization, investors will have a gross yield of 7%, with an interest rate of 6.5%.

The deadline to pay such issuance shall be 10 years with a grace period of two years, where you only pay interest.

In the remaining years will make a capital repayment plus interest quarterly.

100% of the proceeds will be administered by the Central Bank of America (BAC). In addition, the issuance backed plan assets securitization.

42% 42% of those who invested in the securitization are foreigners.

37% The 37% was acquired by the Pension Fund Administrators.

Link to Original Article:

From El Mundo

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