TYPE OF FUNDING: Capital Raising (Debt & Equity)
LOCATION OF THE COMPANY: Maldives
VOLUME: USD 51 Million
DESCRIPTION OF THE CLIENT:
Client is a Financial Advisory company registered in Berlin, Germany, with presence in Europe, Asia & MENA region. It is creating an SPV to enter into an operator and management agreement with one of the top 5 hotel operators of Europe for the development of 4*+ Resort in Dhighudhefaru, Baa Atoll, Maldives.
OTHER KEY POINTS:
* The project will be funded by way of debt and equity in the proportion of 60% and 40% respectively.
* The developer will start earthworks in January 2020. The resort will be completed and operational by January 2023.
* The client will assign a project management entity which will issue an occupation guarantee that equates to ~50% of the GOP starting for Year 1 for a minimum 10 years, escalating at 3% pa.
* The project achieves an initial 8% return in year 1 of operations and an IRR of 17% over the 10-year period. The Debt is fully repaid within 7 years of operation.