Principal Investments

The principal investments in Cuba of the Company are in commercial real estate, tourism and financial sectors. The investments in secured structured financial instruments mature over time and allow the Company to implement its tourism and commercial real estate projects and further expand its portfolio of investments in Cuba.

Commercial Real Estate Hotels Secured Finance

The Company has a 49.00% interest in Inmobiliaria Monte Barreto S.A., a Cuban joint venture company that owns and operates the Miramar Trade Center, having 56,000m2 of fully let office space in Havana, with rental agreements having terms of 1 to 3 years.

Inmobiliaria Monte Barreto S.A. has a quasi monopoly position for modern office space in Havana, is debt free and has the intention of further increasing its operations and asset portfolio.

The Company has a 25.50% interest in the Cuban joint venture company that owns the 397 room Melia Habana Hotel, and a 13.88% interest in a Cuban joint venture that owns 3 hotels (1,437 rooms) in Varadero (Melia Varadero, Melia Las Americas and Sol Palmeras hotels). These investments are debt free (both at holding and operational levels). Average occupancy is in excess of 80% for the hotels in Varadero and of 75% for the hotel in Havana.

In addition, the Company has a 50.00% interest in a Cuban joint venture company that is developing a 400 room beach resort hotel near the UNESCO heritage city of Trinidad. The estimated total investment in this hotel will be US$60,000,000, of which the Company will have to contribute 50%.

The Company has arranged and structured EURO– denominated finance facilities in favour of a Cuban borrower active in Cuba's tourism sector, fully secured by offshore tourism proceeds. The facilities are repaid in Europe via an escrow account to which certain assigned offshore tourism income is deposited (including income from certain hotels managed by international hotel chains). This structure has been in place for over 12 years without default or delay.

Payments that will mature during the next three years will principally be used for the construction of the 400 room beach resort hotel near Trinidad and the possible expansion of the Miramar Trade Center.

Disclaimer

The Information contained in this website has been prepared solely by CEIBA International Management Ltd. (the Manager). None of the information contained herein is intended as financial, investment or professional advice and should not be taken as such by any party receiving it or obtaining it through other means. Nothing in this website should be construed as an offer to sell or a solicitation of an offer to buy any security or to participate in any trading strategy. The contents hereof are based on sources which the Manager believes to be reliable; however no warranty or representation, express or implied, is given as to its accuracy and completeness. Any forward looking statement included herein is based on the opinions or expectations of the Manager, and actual results may differ materially. Historical performance is no guarantee or indicator of future performance and should not be assumed or construed as such. The Manager is the investment manager of CEIBA and is not regulated by any financial service authority. US persons are prohibited from investing in a Cuba dedicated investment company such as CEIBA.