Resort Investment Opportunity in Colombo, Sri Lanka

Established development company seeking funds to acquire and manage a beach resort with 17 villas.

Established
Employees
Legal Entity
Reported Sales
Run Rate Sales USD 1.2 million
EBITDA Margin 25 %
Industries Resorts
Locations  Colombo
Local Time 5:11 PM Sri Lanka
Listed By Business Owner / Director
Status Active
Overall Rating
Seeking Investment
USD 2.4 million for 60.0% stake (Native Currency: USD 2,400,000)
Reason: Investment will be used to acquire the existing beach resort, set up a cash reserve for the first ye... View More
Includes physical assets worth USD 3.2 million
Interested to connect with advisors
Name, Phone, Email
Not disclosed
Business Name
Not disclosed
User Verification
Documents
Business Overview

- 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.

Products & Services Overview

Resort with luxury villas, restaurant, bar, 2 swimming pools, library, spa, and games room.

Facilities Overview
Recent Activity
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct. Note that SMERGERS is not liable for any loss, damage, costs, claims and expenses whatsoever arising from transacting with any other user from the website. The final responsibility of conducting a thorough due diligence and taking the transaction forward lies with the users. Please read best practices on SMERGERS.
Contact Business
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
You might also be interested in these businesses

Frequently
Asked
Questions

  • Why can’t I see the business’ name or contact number? How do I contact the business?
  • What level of due diligence does SMERGERS conduct on the businesses/member?
  • How active are the business profiles listed on SMERGERS?
  • How does SMERGERS rate business profiles?
  • Do I need to pay to connect with a business?
  • Show more