Grivalia Acquires 60% of Pearl Island Project from Dolphin Capital Investors
Grivalia Hospitality on Tuesday announced its first investment, the acquisition of 60 percent of the Pearl Island Project in Panama from Dolphin Capital Investors (DCI).
A Luxembourg based company that offers a unique tourism investment platform in Greece and abroad, Grivalia Hospitality is a member of Grivalia Properties group, the leading Greek REIT and amongst the 20 strongest companies in the Athens Stock Exchange. DCI is a global investor known in Greece for a series of residential resort sector projects.
Isla Pedro Gonzalez (Pearl Island) is one of the largest private islands (1,323 hectares/3,269 acres) in the Archipelagos of Las Perlas of Panama which offers an unspoiled beauty.
“Panama is a country that welcomes foreign direct investments, ideally located in Central America with great accessibility from North to South”, George Chryssikos, CEO of Grivalia Group, said.
According to an announcement, the acquisition price agreed will reach 27 million euros in cash, out of which one million euros has already been paid to DCI as a deposit, 24 million euros will be paid upon completion of the sale, while the remaining two million euros will be retained in an escrow account for a period of 12 months post completion to cover any potential breach of warranties or any undisclosed indebtedness.
Grivalia Hospitality will acquire all corporate entities related with the above project currently owned by DCI and its subsidiaries. Completion of the acquisition is conditional on a series of actions on the part of the seller, which are expected to be finalized by March 31.
With over 30km of seafront and five exquisite beaches, Pearl Island is designed to become one of the most exclusive high-end ecological destinations in the Central America region with at least three luxurious resorts and a big number of branded villas and residential units.
Other developments will include a small retail village, a small and a big berth marina, as well as many other facilities that will improve quality of life. The total development could reach 500,000 sqm and almost all the main infrastructure projects are already in place including a large airport strip, over 18km of roads, a power plant and electricity towers and covered cable trays, a communications tower, a lagoon for water storage, gray water reclamation, waste collection and remediation and a marina of 30 berths.
A small part of the development has already being successfully delivered from the local partner including a seafront club house, condominiums and over 30 villas sold to prominent Panamanian families. An agreement with Marriott Group is in place for the development of a Ritz-Carlton Reserve and branded villas in one of the most unique seafront locations of the island. The total development for this resort will be in the range of 66.5 million euros with 50 percent financing already secured.