Up Front
Ritz Gets Financing
In attendance at thesigning for the financing of the Ritz-Carlton's Resort and CondominiumResidences were: Standing (from left to right) Norman J. Klein,associate of Orren Merren & Co.; Nicola de Lima, regionalVP of Sales, The Residences at The Ritz-Carlton, Grand Cayman;David Littlewood, Global Head of Risk Financing, The Royal Bankof Scotland; Michael Ryan, Developer; Alan Guest, CEO, MitsuiInternational, London; Trevor Borthwick, partner of Allen &Overy, London; Hon. McKeeva Bush, Minister of Tourism; HardingWatler, Principal Secretary, Ministry of Tourism; and RichardFindlay, partner of Charles Adams, Ritchie & Duckworth. Seatedare Eric Bell (left), Sr. Advisor for the Ritz Carlton project,representing the Wills Group; and David Henriques, Global Headof Risk Financing, the Royal Bank of Scotland, London
The local economy should begin torecover shortly, with the announcement that the Ritz-Carlton projectwhich was stalled for several months, is now assured of movingahead with financing for the first phase of the $350 million projectapproved by the Royal Bank of Scotland.
In a press release issued by the developers, it was stated thatbankers, developers and tourism industry officials are sayingthey are pleased with the $105 million loan agreement signed 21March which will enable the Ritz-Carlton Grand Cayman Resort andCondominium project to proceed as planned to completion.
The press release continued:
"The consensus of opinion among localprofessionals involved with the project is that, with the economyfacing a down turn, the timing of this financing is excellentand the Cayman economy will be boosted not only from the directinvestment but also from the many indirect benefits, includingjob creation, that will follow the project. In addition, the stampand import duties that will accrue to the treasury will no doubtbe welcomed by the government at a time of budgetary constraint,"said an attorney at Charles Adams, Ritchie & Duckworth, localcounsel to the Royal Bank of Scotland
The Ritz-Carlton hotel, resort and condominiumsis spearheading Cayman's initiative toward an increase in tourism,high standard of living accommodation and commitment to conservationoutlined in the recent Throne Speech delivered by His ExcellencyMr. Peter John Smith, CBE.
"Government will support and advancethe approved Ritz-Carlton development project and explore otheropportunities to diversify our tourist accommodation offerings,"he said.
The Central Planning Authority recentlylifted a temporary ban on work on the eastern most portion ofthe project following a decision by the National Trust not toappeal the grant of planning permission for the eastern sectionof the Ritz-Carlton development project that had been going onfor the past three years.
The resort is being built in two phasesat a total cost of $350 million.
Phase 1 will include construction of a 366-roomhotel - including a spa, conference space and related facilities- 71 condominium units and a nine-hole golf course designed byGreg Norman.
Phase 2, scheduled for completion in phasesup to 2005, will include the building of 250-315 villas, and abouta dozen larger residences.
Spanning Grand Cayman from the center ofSeven Mile Beach to the North Sound, this luxury development willencompass some144 acres.
The $105 million loan from The Royal Bankof Scotland plc will complete the financing requirement for allof Phase 1 of the development project.
"Marketing of the condominiums hasbeen very successful," said Nicola de Lima Maloir, RegionalVice President Sales of The Residences at The Ritz-Carlton, GrandCayman, "The majority of the condominiums have already beensold and the response has been overwhelming. We anticipate totalsellout by the fall of this year."
Further attesting to the brisk demand, thecondominiums' market value has reportedly risen an average 35percent since the unit first went on sale.
"The response has been tremendous,and supports our belief that a five star luxury hotel, resortand condominium development found nowhere else on the island isdesirable," said developer Michael Ryan.
The $105 million Royal Bank of Scotlandloan agreement was signed off last week at the offices of CharlesAdams, Ritchie & Duckworth, local counsel to the Royal Bankof Scotland. In attendance to witness the signing were Mr. DavidHenriquez, Global Head of Risk Financing and Mr. David Littlewood,from the Royal Bank of Scotland; the Hon. Mr. McKeeva Bush, Ministerof Tourism; his Principal Secretary Mr. Harding Watler; severalattorneys from the United States and Britain; and legal representativesand officials of the Royal Bank of Scotland and Ritz-Carlton.
Such a large closing, with more than 20overseas personnel arriving here for the signing, is unusual forthe Cayman Islands and shows that major international institutionshave confidence in the local market.
The $105 million loan is one of the largestfor a property project in the Cayman Islands and is being providedby the largest bank in the U.K., said the bank's counsel.
The building of the resort will be overseen by an international general construction management firm experiencedat constructing luxury resorts.
The developers also have a firm commitmentto use as much Caymanian labour as possible.
Tourism industry officials say the upscalehotel and resort project will put the spotlight on the CaymanIslands. The logical choice is to make more-affluent visitorsa bigger part of the islands' tourism mix, since this would contributegreater revenue to the economy - the quality over quantity approachespoused in the recent Vision 2008 report.
Leading holiday destinations the world overfind themselves increasingly in direct competition with eachother. Further intensifying this competition within the Caribbeanmarket itself, is the thawing of U.S.-Cuban relations, which islikely to restore Cuba as a prime attraction for American vacationersin the not-too-distant future.
The developer's release concluded:
"The Ritz-Carlton Grand Cayman holidayresort is the kind of development needed here and it is criticalin making the islands' tourism industry prosper," said Mr.Bush, Minister of Tourism.