| …named Chinese investors still a no show eight months later The Georgetown Marriott Hotel, currently under construction in Kingston Georgetown, is likely to be sold 10 years afterNICIL/AHI Head, Winston Brassingtonit opens its doors. By this time all repayment on investments and debts are scheduled to be completed.At least this is according to the Feasibility Study conducted for the project by Florida-based, HVS Consulting and Valuation.According to the summary of the project’s development cost and cash flows, in year 10, the net total income of the hotel is set at US$82.8M.This, according to the study, represents the actual year 10 net income at US$6.7M. The remaining US$76.1M represents sales proceeds.The Hotel is projecting to rake in net earnings of US$3.4M in the first year of operations which increases incrementally to US$6.5M by year nine, after which it is slated to be sold the following year.To date the National Industrial and Commercial Investments (NICIL) remains the only investor in the US$58M Hotel Project, with its equity investment of US$4M.NICIL which is headed by Winston Brassington, has also loaned an additional $15.5M to the project but this money will receive zero interest over the repayment period.This money will only be repaid as long as cash flow enables.In May, Atlantic Hotel Inc, the Special Purpose Company created and headed by Brassington to own the Hotel Project, announced that ACE Square Investment Limited, a British Virgin Islands registered company would be investing the remaining US$8M equity in the project. To date this is yet to become a reality.ACE Square Investment Limited has as its principals, two Hong Kong businessmen, Victor How Chung Chan, and Xu Han.Those two men were expected to rake in approximately US$46M by the end of 10 years.This is also documented in the extract of the feasibility report which was released to the media.According to reports, during the first three years of the hotel’s operation, AHI will pay the Chinese Investors US$1.3M annually.From year four of the hotel’s operation, they will be paid US$1.2M each year for the next six years.According to the report, in year 10 of its operation, ACE Square Investment Limited will be paid a whopping US$37.2M, setting the rate of return over the 10 year period at 22.2 per cent.Included in the agreement signed,Authentic Jerseys From China, the Hotel will enjoy a 10-year waiver on corporate and property taxes which will commence from the first year of commercial operations.Meanwhile, Republic Bank which has been engaged to secure a syndicated loan of US$27M and an additional loan of US$4M to be solicited by the operators of the Entertainment Complex, will at the end of year 10 be paid a total of US$51.1M.According to the feasibility study, when the Hotel is up and running the Senior Debt, solicited by Republic Bank will receive payment before the Chinese Investors, the NICIL equity, and the NICIL debt.Incidentally, five years after the hotel begins its operations, it will take on an additional loan.Repayment of this loan will also take priority over the NICIL loan. |
