Resort Investment Opportunity in Colombo, Sri Lanka
|Run Rate Sales||USD 1.2 million|
|EBITDA Margin||25 %|
|Local Time||5:11 PM Sri Lanka|
|Listed By||Business Owner / Director|
- An architecture and property development company based in Colombo, Sri Lanka will lead the development project, with experience in over 20 architecture and property development projects including a successful luxury boutique resort in Sri Lanka. They bring a strong property development & management team with a proven track record to the project.
- This project involves acquiring an existing leading, profitable, boutique beach resort in a spectacular part of Sri Lanka, and thus a lower risk profile when compared to developing a new property.
- Incredible investment returns based on a conservative five year business plan, increasing share / property value through increasing revenue / profit and further developing the property. Although this investment could also be viewed as a longer term hold, with lucrative quarterly dividends.
- We will be creating 2 companies. The property company will acquire the existing property and its physical assets, and the second company will be the management / brand company which will manage this resort and future properties with a vision to grow internationally.
- Investment of $2.4 million will give the Investors 100% Cumulative Preferred Shares at 7% p. a. + 60% Common Shares ownership in the Property Company, and 40% ownership in the Management / Brand company.
- Assuming a conservative property sale price of $10 million after 5 years (10X EBITDA), and also excluding the land / property value, the return on equity (ROE) is over 250% & the Internal Rate of Return (IRR) is over 30%.
- Sri Lanka has a great tourism product with high growth potential. The health and wellness market will no doubt be a winner post Covid, and these aspects will be a major focus of the product offering.
- Share dividends to be paid quarterly after 3 years.
- Exclusive shareholder benefits, including complementary nights and discounts.
- Revenue, EBITDA figures and other details mentioned are of the existing resort operation.
- Physical assets include value of the land, resort buildings, and FF&E.
Resort with luxury villas, restaurant, bar, 2 swimming pools, library, spa, and games room.
Earlier than 15 daysMarket Research Analyst, Synthetic Rubbers, Nicosia, Corporate Investor / Buyer accepted business proposal