Development For Sale Tazacorte, La Palma Island Ad:242675

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Spain > Canary Islands > Provincia De Santa Cruz De Tenerife > Llanos De Aridane (los) > Puerto Naos

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€6,863,800

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Development
For Sale
Puerto Naos
Spain

Owner sells new plot of land of 49,700 sqm,
(12,08 acres), with new license and
planning permission to build a Aparthotel of
500 beds. The plot is located in La Palma
Island, (a Biosphere Reserve), Canary
Islands, Spain, with wonderful panoramic
views over the ocean and is free of any
charges, debt, mortgage or taxes.

The owner will consider entering in a joint
venture with investor to develop this new
plot of land. The expected return on
investment and projected profit, ROI, is over
�13.3 million in less than 3 years before
taxes, as the business analysis indicates.
The approval, permits and authorization of
public administrations required for project
implementation to proceed in this plot of
land is already in place; therefore
construction can start immediately.

This plot of land is max. 45 minutes from the
new international airport. The owner already
has got letters of intent from 3 different
European tour operators interested in asset
purchase, management or joint venture
agreements in this project with the property
developer.

The characteristics of the planning
permission for this plot would allows the
property developer to sell the Aparthotel in
individual units, (self-contained rooms within
a hotel infrastructure - or buy-to-let hotel
units), to private buyers and large
multinational tourism operators interested in
participating in the business in several
modes.

The property developer may also use this
plot of land to build a hotel for further
operation, leasing or for sale to a third party.

Building an Aparthotel and selling properties
to individuals allows the new owner to
recoup his costs almost immediately,
especially given the current demand for
holiday homes from La Palma in the
German market.

Strategy:
Investment in a land purchase and touristic
project development, (with or without a joint
venture with actual owner), to build a 4 star
hotel or apart hotel of 500 beds in a
sustainable destination and Biosphere
Reserve zone.

Project duration:
Estimated 20 - 24 months from inception to
completion.

Investment:
�6,863,800 for the land
�29,640,000 for the total construction and
other costs to be invested in a period of 24
months as the development program
indicates. This project can be cofinanced by
the FEDER fund, (European Regional
Development Fund), with 10%-15% of the
total construction costs.

Investment Returns:
�47,830,000 gross income. Sales from
aparthotel room and individual units.
�13,300,000 profit before taxes.

Help with the Project Implementation. The
owner, a retired civil engineer, is open to
enter in a joint venture with an investor, an
experienced property developers or
property fund alike. The actual owner can
help in selecting the local contractor,
architect, lawyer and engineer, monitoring
construction and project development,
speeding further licenses and helping the
investor to ensure that details of the project,
commitments, deadlines and quality
engagements are respected.

Key Advantages of this new plot of land:

� There is a shortage of hotel and apart
hotel accommodation in the island, currently
12,000 beds, to meet potential tourist
demand, as indicated in the `Plan Territorial
Especial de Ordenaci�n de la Actividad
Tur�stica de la Isla de La Palma`, (Special
Territorial Plan for the Regulation of the
Tourist Activities in La Palma Island).

� This new plot of land will get a subsidy
or grant for the Canary Islands Government
through the FEDER Fund to encourage
foreign investment in the
subsidy would be between 10%-15% of all
the construction costs of the development
and will be paid at the completion of the
hotel or aparthotel. This grant would
represent between �1.8 � �2.3 million for
the investor.

� This new plot of land with license is in
the name of a company HIspatur Turismo
SA, with only 1 shareholder, the actual
owner. This company has this plot of land
as the only active and is up to date with its
books and has no debts whatsoever. The
investor will save about �500,000 in taxes
and legal fees purchasing the company
instead of the plot of land.

� The Local Government opened a new
international airport last May in the island of
La Palma to meet the tourist demand and
started to invest in November 2010 over
�240 million in improving the infrastructures
and services in the island.

� The island of La Palma enjoys a
tremendous demand from the German,
Austrian and Swiss market as a tourist and
retirement destination. Around 5% of the
population in La Palma Island are foreigners
from the mentioned countries.

La Palma Island was declared by UNESCO
a Biosphere Reserve in 2002. The
sustainable development strategy of the
island includes night sky conservation as a
basic heritage to put into value. Besides, in
December 18th, 2006 La Palma was
certified by the International Centre for
Responsible Tourism as the first
`Sustainable Tourist Destination` in the
world. It also has been recognized
internationally as a sustainable Tourism
Destination by ITR (Responsible Tourism
Institute).

The island of La Palma has also been
awarded with five qualities of Biosphere
Certificates: Biosphere Destination -
Biosphere Hotel - Biosphere House -
Biosphere Restaurant - Biosphere Discover.

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