(I) CONDO-HOTEL: Real estate ownership + hotel services!!!

19 September, 2011 No Comments

We are talking about a hotel in which every room belongs to a different owner, but the entire hotel establishment is managed jointly …. also referred to as the perfect second home.

Its operation is similar to the one of a normal hotel with the difference that the rooms are owned by an investor. The investor will be able to enjoy the room for a certain period of time, and the rest of the time it will be exploited by the hotel managing company, producing a nice return to the investor.
This kind of business surged in the 80′s in South Florida, which then spread to other states as New York, Los Angeles, Las Vegas, or golf resorts and mountain resorts such as Aspen in Colorado. After a while, it became a very common figure in other countries such as Panama, Canada, Philippines, and many more.

Many second home owners consider the possibility to rent their home for as long as they don’t use it to take some profits out of it. However, in many cases they are not successful because it is not always easy to find tenants.

In this particular case, the “condo-hotel” investor owns a piece of real estate within a large hotel resort ans is aware that will be able to enjoy it one month out of a year. The remaining 11 months he will not have to pay expenses that a second home usually carries, and will be getting a return for his investment from the management company.

It is obvious that the management company, in order to maximize profitability, will put a restrain on specific dates in which the owner will not be able to use the home, for example in some countries, the months of July and August which are the busiest of the year. This type of investment would be more convenient for people who have flexible schedules, and are able to pick their vacation days with no restrains.

“Condo-hotels” are usually located in the best destinations around the globe. C-h are high quality places where every little detail is taken into account, and its clientele is in the upper class. All this leads to a high turnover in room rentals. Thus, when investing in this specific product, it is recommended to do it on a hotel whose management company is prestigious and has good reputation.

It is a relatively new system in Spain, and it seems that in the urban aspect there is legal uncertainty. But in legal terms, the condo-hotel may be regulated within some of these figures: 1 – The hotel’s horizontal division, which would be the most common way to do it. In this case the owner would have the property and a registration notice proving them owners of a room. 2 – It might also be considered as a group of assets, which would mean to buy a % of the entire property without specifically dividing the parts (not the common way). 3 – A corporation, that is to acquire part of the hotel by the purchase of shares. In this corporation, the ownership of the hotel belongs to a company whose investors participate as shareholders.

Regarding the community services that the hotel offers (pools, spa, gym, golf, etc..), they will be available to the owner during his stay, with the possibility to pay them at a discount (depending on the agreement established with the management company).

The managing company is responsible for the rent, as well as for maintenance and repairs of both the property and the common areas. The portion of the income derived from the rental is allocated to finance, if any, repairs or possible damages in the property.

In a later post, I will present you with a list about the strengths and weaknesses of this type of investment, which differ from both timeshare or fractional properties.

(II) DATAGA: MACRO PROJECT IN CHINA “EUROPE ROYALE”

19 September, 2011 No Comments

Within Europe Royale, Dataga’s project to build four major cities in China, comes the creation of The City of Sports.

The Spanish Football Federation (RFEF) will manage the football section of the new Sports City of Europe Royale, in Beijing.

See the model for the new Sports City.

There will be high performance centers categorized among the world’s largest in sports such as tennis and soccer. In addition, there will be a few golf courses, a great athletics stadium, as well as facilities that will provide services for elite athletes, dorms (capacity for 1,000 athletes or more), hotels, and commercial and leisure areas. And it’s not all, there will also be a large private university hospital, devoted only to the specialty of Sports Medicine.

The agreement to manage this section of the Sports City was signed by the RFEF early in 2011: The plan is to create the Spanish Federation Football Academy and a High Performance Centre (CAR). It is aimed for athletes from 8 to 26 years old who intend to advance professionally in their respective sport.

According to the RFEF’s website, the project will be financed by the Spanish Holding, and will include the construction of 26 soccer fields of different sizes and a large central stadium with capacity for 26,000 people (with the facilities required in order to run these sporting events).

Some people wonder about the economic impact to the RFEF by its involvement in the project, even though Dataga’s president was not able to give an estimate:  ”These agreements create synergies that are impossible to describe with a single number ” (elconfidencial.com 01/08/11)

……… Will this agreement lead Spain to the Golden football?

NEW BVLGARI 6****** HOTEL IN LONDON!

16 September, 2011 No Comments

Brick recovery in London? ….. people look for the safest investment, and  the lvxury hotel segment came to mind.

This new bvilding that attempts to arrange a hotel plvs six lvxury apartments, is located in the neighborhood of Knightsbridge, a very exclvsive area in the city of London with amazing views to Hyde Park (nearby Harrods). A few meters away from the hotel, you can find the most expensive apartments from the city, the One Hyde Park complex. The project is lead by Inditex co-founder Rosalia Mera, svpported by other investors such as Prime Capital Investors with an estimated capital outlay close to 350 million €. (Expansión 30/01/11)

The hotel project under the name of the Italian jewelry firm BVLGARI, which currently has hotels in Milan and Bali, will be managed by the Ritz Carlton family, the company that currently manages the other hotels from the chain.

Rosalia Mera has previous experience in the hotel indvstry, with a stake in the Room Mate chain, as well as a number of hotels in the US. In this case, it is a rather conservative project, and a way to diversify her real estate investments. London is also considered to be a stable market, and the hotel would become the first 6****** hotel in the city, which I am sure they will not have too many empty rooms.

The project’s site is where the old Normandie Hotel was established. The investment group bought the site in 2008, but it was not until over half a year ago that the necessary permits and licenses were finally approved.

Its opening is planned to be at the same time as the 2012 London Olympic Games.



(I) DATAGA: MACRO PROJECT IN CHINA “EUROPE ROYALE”

16 September, 2011 No Comments

From the association between Spanish Dataga and Hainan China Railway Construction Investment surges the development of this project.

Spanish real estate developer Dataga will build, according to their data, the largest residential, tourist, and leisure project of the Asian continent. The idea is to build four large residential complexes in the areas of Beijing, Shanghai, Shenzhen and Hainan. The project, referred to as Europe Royale, seeks to recreate the architecture and landscapes of five European countries (Spain, Italy, France, England and Germany).

Believe it or not, this project is to actually build four new cities that will include all necessary services of a city; schools, hospitals, leisure space, tourism, cultural, and sports centers. In a future post I will write about the agreement (7.1.11) closed with RFEF (Spanish soccer federation) to manage the football section of the new City of sports of Europe Royale in Beijing. The first project currently underway is the one to be held in Hebeli, near Beijing.

The developer, in a joint venture with local partners, has agreed to develop the project with Chinese authorities, public and private organisms, and Asian funds and banks. Hainan China Railway Construction Investment, a partially state-owned enterprise, will collaborate in the development of the first project, and Dataga has created a network of Chinese and international offices and companies. For the Beijing project, the initial investment is estimated to be € 10,000 million, of which € 1,900 million will be allocated in the first phase. (Expansion 3.2.11).

The entire project is scheduled to be built in 10 years, working in periods of 24 months with the first property deliveries in 2012. The villas, ranging from 400 to 1,200 square meters, will have an approximate value of 6,000 € / m2, and are targeted to the high-end segment of the Chinese society, without forgetting other potential markets such as Hong Kong, Singapore, Korea and Japan. In addition to the residential area, there will be a financial district, with 25 office buildings, international universities and sport areas.

This major project is one of the pioneers with which the Spanish real estate sector has expanded in the Chinese market. This was possible due to the Chinese law of urbanization that qualified land as state ownership (concession), which did not appeal foreign investors to develop real estate projects in China.

For more information please check:

www.europeroyale.com

(II) Real Estate Investment in Punta del Este – URUGUAY

15 September, 2011 No Comments

Uruguay is a tourist destination where people who went once, usually like to repeat. This makes a positive effect on the return of any real estate investment, especially of vacation properties.

Uruguay finds itself in a full expansion that has allowed, after a period of growth, to achieve economic stability. It focuses on low public spending policies, competitive tax rates, in addition to an improved tax collection, and a relatively open trade regime.

Besides the economic stability and the country’s strong legal system, the Uruguayan government has an open attitude towards foreign direct investment (FDI), by eliminating unnecessary paperwork such as previous registrations and authorizations, as well as restrictions that discriminate against local or foreign investors. This allows foreign capital to have no restrains in case they desired to participate in local companies. The legal and mercantile procedures to establish a corporation in Uruguay are simple, and the initial capital invested can benefit from tax exemptions, or VAT.

Punta del Este is emerging as one of the best business opportunities in the country. It is the most attractive real estate investment due to its location, like a “VIP real estate destination”. Despite Montevideo, Punta del Este has registered the highest number of transactions of second hand/vacation homes, whose main buyers come from Brazil, Argentina, United States or Europe, with an increasing number of Uruguayans as  their society gains purchasing power.

This part of the country offers virgin landscapes, combines nature and a very well designed modern city, with  its commercial and residential neighborhoods while respecting the area’s coastline natural beauty, which enables you to enjoy countless “first line views to the beach”, adding value to the property. Usually, properties acquired in Punta del Este are occupied most of the time, fostered by a climate that has an average temperature of 30 º C in January, which compared to Barcelona or Madrid, is “a bit warmer”.

As a relevant fact, I would like to highlight some investment figures that attempt to develop different markets with less conventional structures. They base their functioning in ways that are more secure in contrast to the potential risks, promoting a more efficient development:

* Building Trust at cost, which would be associated to the market of residential housing.

* Condo Hotels, associated to the development of second homes in tourist areas and for selling purposes.

In a future post I will make a deep analysis of these figures that are increasingly becoming more powerful in this housing market.

(I) Real Estate Investment in Punta del Este – URUGUAY

15 September, 2011 No Comments

If you are interested in brand new real estate such as homes, flats or other new properties around the world, check out the international portal www.obranueva-newhomes.com. You will be able to contact directly developers and promoters who offer these properties in each particular country. It is a simple and easy way to get to know the international market.

In this case, it’s a narrow strip of land that divides the waters of “el Rio de la Plata” and the Atlantic Ocean. Thus, its extensive crystalline water coasts.

Uruguay is among the international tourist destinations that offer the possibility to take a summer vacation in January.

Let me mention the reasons for which one should consider investing in Real Estate in this area of the world:

1 – Political stability: Uruguay is considered the most peaceful country is South America, followed by Costa Rica.

2-New constructions are luxurious, with great designs, and integrated in the landscape. Punta del Este has made an effort to achieve a sustainable development, with growth that respects the environment.

3-Paradisiac beaches, lacunas, wildlife, and caves, are what surrounds the peninsula (so appreciated around the world).

4 – Here you can acquire a home and a higher standard of living at a considerably lower price than in Europe.

5 – Real estate is expected to increase significantly in value

6 – As a foreigner, when buying a property, you will be treated equally in terms of taxation.

BLACK SEA GARDENS RESORT in BULGARIA, A FOSTER + PARTNERS PROJECT

13 September, 2011 No Comments

SUSTAINABLE ARCHITECTURE PROJECT
Norman Foster Black Sea Resort master plan

Among the impressive collection of projects that Norman Foster’s studio has designed, we find this master plan for the development of a tourist complex in the coast of Bulgaria’s Black Sea. This project tries to minimize the impact on the environment, and its possible gas emissions.

It will be located near the Bulgarian town of Byala divided in five neighborhoods that make up the complex that will be located on top of small hills covered with forest. The neighborhoods are: Sky Village, Wilderness Village, Meadow Village, Cape Village, and Sea Village, all of them by the sea. Its streets will be filled with trees and vegetation, but cars will not be allowed to circulate which is one of the ways to avoid gases. Residents will have to leave their car in underground garages located at the entrance of each of the neighborhoods, and in order to move around there will be electric shuttles or the possibility to have electric carts, and bicycles. The project was designed so that the entire community, 15,400 residents, could live the entire year and enjoy the area’s great climate.

This project is currently on standby as the developer Madara Bulgarian Property Fund ltd. (a company that was listed on the London Stock Exchange ) needs to find partners / investors to help them finance a portion of this development in order to finish it.

Some advice when purchasing in the foreign market so that YOU DON´T…

6 September, 2011 No Comments

1 – Overestimate the budget itself:
It is dangerous to rely solely on the income received from renting the property to cover  mortgage payments. One must always have reserve funds.

2 –Sign a contract without the appropriate legal counseling such as an attorney:
It is crucial to have a lawyer check any document that you need to sign. When you purchase a property off the architectural plans, or when you make a trip to the region to check out the promotions, there may be some pressure to sign documents, or make payments. Thus, you must count with an efficient lawyer that is available either by email or fax at any time.

3-Rely on something, unless otherwise specified in the contract:
In most cases the developer selling the property is the one that will be responsible to rent and manage it during the months the owner does not use it, which will be specified in advance. The concepts that should be clearly identified are: the months available for rent, total amount charged for rent, and how will be divided between the owner and the agency. The guarantees for rentals, in particular, are always based on verbal promises, but often are not specified in the contract clauses. Make sure that the contract has no cracks in this matter.

4-Ignore additional costs: 
 In some countries, fees and taxes can add another 15% of the purchase price. It must me added to the total.

5-Ignore the effect of currency fluctuations: 
 The value of Euro € may vary, increasing or decreasing based on the fluctuation with repect to other currencies like the US dollar $.

 6-Ignore the local tax system:
You must be aware of the tax obligations instead of assuming a similar system as in our country.

7 -Use a lawyer who works or has a close relationship with the promoter:
To avoid conflict of interests between the promoter or agent to whom you are buying the property.

8- Purchase with your heart instead of using your head: Most purchases abroad work quite well … …… But it may happen that the property of your dreams becomes a nightmare if you have not done the appropriate market research before deciding to purchase the property.

TELEFONICA Foundation: OSCAR NIEMEYER’s exposition

6 September, 2011 No Comments

About to turn 104 years old, winner of the Pritzker Architecture’s Prize ’87, and with a stunning resume of architecture works internationally recognized, Oscar Niemeyer remains active.

One of the lines of his artistic thought, reflected throughout his work, is summarized in this sentence:

Is not the right angle that attracts me, nor the straight, hard, inflexible line created by men, instead what attracts me is the free and sensual curve, the curve that I find in my country’s mountains, in the course of its winding rivers, in the sea waves, or in a beautiful woman’s body. The universe is filled with curves, Einstein’s curved universe. – Oscar Niemeyer

 

From his words it is clear that modern architecture should move out of the usual straight lines and put emphasis on curves, making a reference in his works to the structures of nature ….. In order to accomplish it, he explored the possibilities of reinforced concrete to create curved surfaces (innovations favor new creative possibilities).

Another of his lines of thought …. Niemeyer breaks the idea that a form follows the function and proves that when a form is beautiful becomes functional, and therefore, is fundamental to architecture .- Norman Foster

Niemeyer is one of the most prolific architects of the XX^th century, creating imaginative constructions, curves (more complex than the straight line), with color, that were a revolution to the architecture of the time. Besides being an architect, Niemeyer is also a sculptor, an artist, a thinker, a humanist and an innovator, whose modernity astonishes in a conceptual and technical manner…. “The new different way, that surprises, that’s architecture” – O. Niemeyer

The importance of his work in relation to contemporary architecture: Created the most important buildings in Brasilia, a capital that has been declared a Historical and Cultural City of Mankind by the Unesco. It’s a brave architecture, sculptural, with passion for color, and that cannot be compared with anything that has been done before. “When I get a project I try to make it beautiful, different and that generates surprise …” -O. Niemeyer.

Niemeyer was born in Brazil 15.12.1907, and unsatisfied with his country’s existing architecture, he decided to pursue this career shaping his own personality into the architecture that has been doing until now. He has become a universal figure that we associate with Brazilian modernism, but to the question … can Niemeyer be included within the lines of modernism or he would be considered an “outsider”? Despite the answer, he really has a creative freedom in his drawings that leads him to find his own way into modern architecture.

 Cathedral of Brasilia

To understand this architect, let me explain that not only he draws his work, but he also writes it, so that it makes more sense…. Amazing!
His work is far more extensive, but to make it short, let me include a brief summary with his career highlights:

    * In 1952, following the initial ideas of Le Corbusier, Niemeyer collaborated in the building of the United Nations, in New York.
    * In 1956, he worked on the project of building the new capital of Brasilia, where he was responsible for the design of residential, commercial and administrative buildings: Cathedral of Brasilia, Planalto Palace, or Itamaraty Palace….. Brasilia was a city designed, built, and developed in four years, the period of time that President Kubitschek’s was in charge.

    * In 1966, during the military regime in Brazil, he was forced to exile to Paris where he worked on projects for Portugal, Morocco, and Malaysia.
    * In the 80′s Niemeyer went back to Brazil, where he built several corporate headquarters in Brasilia, such as the Memorial JK, The patriotic Pantheon, the Sambadrome of the cities of Rio and Sao Paulo, the Latin America Memorial …
    * From 1991-1996 designed the Contemporary Art Museum in Niteroi (MAC), considered by many his best work.

    * In 2002 the Oscar Niemeyer Museum opened in Curitiba, southern Brazil.

    * In 2007 is invited to design a football stadium due to the football world cup of 2014. 2007 also held the inauguration of The Oscar Niemeyer Popular Theatre in Niteroi, Rio which is a work dedicated to Brazil with green, yellow, blue and white colors.
    * In 2009 The project for Spain: In return for the 1989 Prince of Asturias Award for the Arts, Niemeyer, has given this institution the project for the International Museum of the Prince of Asturias Awards, that will be located in Oviedo, Asturias. It will be known as the Oscar Niemeyer International cultural center.

    * Alive and about to turn 104 years old, is still active and able to perform, makes arrangements of his old works which are considered national or international heritage that can only be modified by him.
Niemeyer integrates his buildings within their natural environment, including vegetation and water, as lakes, part of his work.

This exhibition promoted by Telefónica Foundation in collaboration with the Hispano-Brazilian Cultural Foundation followed by the week of architecture, organized by the Municipality of Madrid, Coam, and Coam architecture foundation, presented a complete overview of the centenary of the Nemeyer’s work.

FOOTBALL ACADEMY in the new luxury RESORTS

4 September, 2011 No Comments

Football breaks down barriers by creating a language that everyone understands….. David Beckham and Lee Sharpe introduce tourist destinations in Brazil for 2014.

The usual activities most performed in luxury resort are water sports, tennis, and golf. Due to the global impact that football has had, resorts have started to build football academies, because for what we know this country is the land of football and sun.

As shown in the video, David Beckham, Los Angeles Galaxy player since 2008, disclosed his intention to build a soccer school in the beach of Sao Roque, 50 km from Natal, northeast of Brazil. It’s a project which envisages also the construction of a resort with sports facilities including a mini-stadium and eight soccer fields, as well as a golf course. It will be managed by the David Beckham Academy, currently headquartered in Los Angeles. The complex, financed by Norwegian capital, the Brazil Development turisticos Investimentos Ltd., will count with the construction of 8 hotels and luxury apartments as well.. in anticipation to the World Cup of 2014. It will also have a kart track for Formula 1 training, with the collaboration of F1 world champion Rubens Barrichello.

David Beckham introduces Football Academy, World Of Sport Complex in Brazil

watch?v=7eFRVKpOXKY&feature=player_embedded

Another example, ManUnited Lee Sharpe will be in charge to manage the football academy that bears his name, in the White Sands Country Club resort in Natal, in particular, facing the Genipabu beach, located in the Northeast.

The complex and its Lee Sharpe Football Academy, sponsored by Planet Green, will have 244 residences, with plots ranging from 360-515m2, located 15 miles away from Natal International Airport, which it’s expected to reach an investment return of 15 -20% annually.

These examples are further evidence that investing in Brazil today is to benefit from its economic boom. In addition to the economy, add the advantages of this location, because the Northeast part of Brazil is the closest to Europe (roughly a 7 hours flight). By 2012, what will be one of the largest airports in Central and South America, Sao Gonçalo, should be operative with more flights to the area, which will increase the overall area’s value, specially from properties.

The equation is quite simple: World Cup + The Olympics + a growing economy + scarcity of homes = Benefits …… and a tight calendar to become a developed country, which, according to consultancy Ernst & Young, by 2020 Brazil will no longer be the eternal emerging country. During the presentation of the new brand of Banco Santander in Brazil, the result of a merger between Banco Santander and B. Real (Brazilian) in Sao Paulo, Emilio Botin talked about growth, growth and growth in the Brazilian market, as its primary objective. (Expansión 11/25/10)

Brazil has gone from being a country with an enormous potential to be a solid reality, with high expectations that locate it the fifth world economic power in only 10 years. To be successful, politicians are focusing their efforts mainly on job creation, a higher base salary and a policy for economic stability.

As I’ve previously mentioned in other posts, the investment opportunities for Spanish companies are favored due to the next World Cup, the Olymplic Games of Rio de Janeiro in 2016, as well as governmental plans to improve infrastructure and housing .

Another challenge for Brazil during the World Cup is that the trophy will be a green goblet featuring the country’s great power in photovoltaic solar energy as an example of renewable energy. They will also build solar stadiums (based on the Stade de Suisse Wankdorf) with huge solar panels such as the Mineirao in the state of Minas Gerais (an initiative from IDEAL, Institute for alternative energy Development in Latin America). The proposals of Qatar and Taiwan (World Games stadium) as possible hosts of the 2022 World Cup, also bet on solar stadiums.

…. in a globalized world the only way to be competitive is to expand ….

The former English Manchester United player, is expanding his football academy in Egypt, in particular building another in The Pearl of Sahl Hasheesh resort in Hurgada, Red Sea.  this exclusive resort on the Red Sea coast, counts with 165 apartments of various sizes, located in four small islands, with 12 luxury villas of 222 m2 in a plot of 500 m2.