PRESTON Development FZE, a member of the PRESTON Capital group, issued bonds in a total value of 25 million CZK that will be used to finance the construction of a hotel resort in the United Arab Emirates. These are secured corporate bonds with a fixed interest rate of 8% p.a.
BRNO / RAS AL KHAIMAH - The Sun Beach Hotel Resort will be built on the artificial island of Al Marjan situated in the most attractive tourist emirate of Ras Al Khaimah. PRESTON Capital has exclusivity in the distribution of financial products and investments for funding the project. The company is also an exclusive seller of hotel apartments to end clients in Central Europe. The partner of the project is PRESTON Development FZE. Construction is planned to start in the second quarter of 2022.
Secured corporate bonds with a fixed interest rate of 8% p.a.
The total budget for the construction is 40 million USD. To obtain sufficient equity for the local bank, PRESTON Capital will issue bonds in the value of 25 million CZK within the group in the first phase, via PRESTON Development. A part of the construction is also financed from the sale of the apartments to final investors.
PRESTON Capital invests resources within the holding, as it owns a foreign development company, among others. This company is already an owner of a plot worth 8.45 million USD. All documents regarding the purchase of the plot from master developer Al Marjan are transparent and available to investors.
PRESTON Capital brings an exclusive investment opportunity to Europe. In terms of the sale of corporate bonds, these are secured bonds with a fixed interest rate of 8% p.a. In terms of the sale of apartments, the minimum yield is 6-8% p.a. for the investor as owner of the real property. The price of the apartments starts at 350 thousand USD.
Apartments under a prestigious hotel brand
The project offers a whole range of advantages to investors. First of all this includes the yield, which will be higher than if the same amount was to be invested into real property in the Czech Republic. Here the annual yield for renting an apartment is around 1–2%. Another benefit is that the apartment is covered by a strong hotel operator. It will be rented to tourists throughout the year, which means investors don’t have to worry about the operation at all.
It goes without saying that the investor will be entered as the owner in the land registry and can use the apartment for their own purposes 2 weeks a year, which entitles them to obtain residency.
Discover Sun Beach Hotel Resort with your own eyes
PRESTON Capital will pay for a trip to Dubai for selected investors. On the site they will be able to study the project documentation, meet the architect and will be able to visit the construction site.