Guanacaste is waiting

Real estate sector size works redefined or postponed start of construction

Imagine a car on a six-lane highway going 120 kilometers per hour. Suddenly, there is a bumpy unpaved road, where the car must slow down to 20 miles if you want to reach their destination.

This metaphor shows the behavior somehow he has had in the past two years the real estate development in Guanacaste went from an accelerated process of construction and real estate deals, a caution period and deceleration.

Some examples illustrate this reality.

Raccoon Group is a powerful real estate consortium led by Carlos Arroyo.

For 2006, designed an ambitious tourism project, commercial and residential in El Coco, Carrillo and Playa Hermosa, involving an estimated investment of over $ 2,800 million and designed to run 20 years.

Currently, following the global crisis, dropped the throttle and focuses on advancing only those proposals where contracts with buyers are secure.

Its corporate area president, Francisco Alvarado, acknowledges that the group has had problems with customers not paying the contract of sale, were rescinded.

“These foreigners who bought five or six properties and had trouble raising money. In addition, new buyers are not coming and that generates a strong pressure on cash flow, “he said.

In this area of  Costa Rica, said Francisco Barquero, executive director of the Costa Rican Chamber of Real Estate is most noticeable cessation of works, unfinished buildings and other earning or auctioned.

Such is the case of an estate of 45 hectares which acquired the firm rivalry Development in Royal beach, near Conchal and which, because of the crisis, is being sold by HSBC in the amount of $ 12 million.

Jorge Rivera said he and his partner Alykhan Dhanani acquired two properties: a nine-acre waterfront, where Bella Collina will develop the project, and then another in the back 45 acres.

In his words, reached an agreement with the bank before falling to the costs of the auction, were offered the option to repurchase. That is, if unable to obtain resources rivalry, buy back that land.

In another area, the group plans to develop, at an estimated period of 12 months for an investment houses about $ 80 million and will include four towers with 35 apartments, plus 14 lots and 140 condos.

According to Rivera, it is in negotiations with groups of foreign investors who can develop the work.

In neutral

15% -20%
Percentage those condominium developers must adjust selling prices.

18-24
Guanacaste take months as an ecotourism destination and luxury demand recover.

85%
Beautiful houses for GTU Developments Sea sold: 15 in 2009, 6 have to sell.

The Pillars project, designed to operate shops and offices near the airport in Liberia, was also beaten by the crisis.

Its developers, Sigma Group, decided to postpone it and define whether or not reactive middle of this year, representatives said Philip Seidner.

Lands Rocha’s case is similar. It was initially conceptualized to build luxury homes on 5,000 square meter property, close to Papagayo, in Cabuyal beach.

Before the crisis, the development firm Deguna SA sought out real estate experts who applauded the advantages price / area of construction, location and amenities offered.

Since the crisis over, these same real estate companies suggested offering other products such as golf courses, malls andboutiques exclusive.

“Conditions that our project for his concept of natural environment, quiet and green are incompatible,” said Antonio Gutierrez Deguna partner.

The result was that Rocha Lands stopped waiting for a better behavior of the real estate environment.

It is now being restructured, incorporating smaller models and lower price.

Nor have they started construction Punta Cacique, owned by the famous Steve Case, Andre Agassi and Steffi Graf. The same goes for hotels, Hyatt Regency and residential projects Azulera Valicy Hermosa, Flamingo Joy and Lobster Naturalia.

Monte del Barco also paused. Its owner, Aldesa Investment Funds, reorganized the financial plan in late 2008, slowed construction and delayed the golf course to reduce borrowing requirements.

Lanzo Luconi, director of the fund, said that last June reached $ 35 million credit for the Central American Bank for Economic Integration, which is still pending approval from two banks that participate in the syndicated loan.

Meanwhile, advanced with some works and procedures, managed to sell a parcel to build condominiums, which sell international brokerage firm already contracted.

Also signed the contract with Park Hyatt to operate a hotel and “is restructuring its financing with a global investment bank that was hired last September,” said Marcela Fernandez, director of 4D real estate developer.

This year will be the main infrastructure and structuring the financing of the hotel.

In the canton of Santa Cruz, at least 22 construction projects are stalled for amparo brought by environmental advocacy organizations and communities claiming lack of water.

The mayor, Jorge Enrique Chavarria, estimated that the canton is losing $ 600 million and thousands of jobs. He expects new projects and the resolution of the conflict, reenable the area.

New investments

The housing sector of Guanacaste heard of new works.

Second hotel: The RIU chain has environmental endorsement for second hotel (Palace) but expected market performance.

Canyon Ranch: Get permits for luxury homes for retirement and rest in Santa Cruz.

Estimated investment $ 400 million.

Raccoon: Proceeds with its Tropical, Rock Del Sol, Suite Dreams and Pura Vida. Others remain on hold.

In Bagaces: Welness Alianto opened some of its complex services: clinical holistic, indigenous medicine and spas. $5 million.

Hyatt: Signed agreement to manage Andaz hotel in Papagayo will open in 2013, will have 150 rooms.