This Trinidad and Tobago based 21 acres (1,000 sf of beachfront) resort upon completion will consists of 126 townhouses (2 and 3 bedroom units) to be sold to individual buyers, a 40 room hotel, restaurants, bars, pool and other amenities. The townhouses will range from 1,350 sf to 1,450 sf with all units being sold fully furnished, and having two or three full bathrooms, balconies, patio and more.
A franchise has been purchased from Choice Hotels International (the Ascend Collection, its highest boutique hotel franchise) for the 40 room hotel. Marketing of the townhouses for sale will be done internationally from a major broker in Trinidad, and from a series of brokers in the US. Construction of the project is expected to take 18-24 months to complete, and the sales of units are also expected to be completed with 12-24 months. Construction of the project will be handled by a very experienced construction from the US, subsidized by local labour.
The hotel construction costs including furnishings is budgeted at $5M, and will be completed after the majority of the townhouses are built and sold. The land site involved in this project has been appraised at $8M.
The townhouse units are expected to be sold with a range of $300,000 - $595,000, with an average selling price of $375,000. The revenue expected to be derived from the sale of the townhouses is $50M - $55M. It is expected that this target level of revenue will be achieved as the prices of the townhouses will be increased during the sale period.
The developer expects the entire project will require approximately two (2) to be completed. Accordingly, the developer is seeking $8M initially in year 1 which will be used to commence the construction of the townhouse units and roughly $9M in year 2 to complete the construction of the other townhouse units. 88 of the 126 units will be three bedroom units and 38 will be two bedroom units. This phase will also include the construction of relevant infrastructure such as roads, drains, car park and a water reticulation system. It is expected that these funds will be repaid via the sale and closings of roughly 30-35 townhouse units.
The resort will be located on the island of Tobago, the sister island of Trinidad, which is characterized a clean and pristine island as compared to Trinidad which is more fast paced and energetic. The main tourist visitors to Tobago are European leisure travelers. The main source main market is the United Kingdom and Europe.
Notwithstanding the above request, please note that the developer is open to alternative funding structures which may be utilized to complete the required works described above.
In conclusion, please note that the construction of the townhouse units, hotel and all needed infrastructure, landscaping, furnishings, marketing, sales, legal, etc is budgeted at $30M. Accordingly, funding proposals which seek to provide the total project capital of $30M is welcomed.
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Hello Otis, we do have international construction financing available, but obviously based on numerous criteria.
The big question is how much is the developer contributing liquid cash and/or any other collateral to the project? You can email us at Info@SimsCapital.biz