Belizean company Point Alegre Development has secured a US$3-million loan for, among other things, the construction of a residential resort.
Borrowed from United States-based Kennedy Funding, the proceeds of the loan will also pay off debt, refinance Pointe Alegre’s operations and used as working capital.
The Belizean company has endeavoured to develop 19 acres of land situated in Orchid Bay for residential tourism. Significantly, a total of 30 parcels of land in Orchid Bay are part of this development phase, the second for Pointe Alegre.
Commenting on the loan, Kevin Wolfer, president and CEO, Kennedy Funding, noted: “The loan for Orchid Bay required significant legal work and knowledge of local, regional, and international real estate and financial laws. No typical lender could make this type of deal happen.
So far, Pointe Alegre has completed the first phase of development on the site. In total, the company has built and sold 24 casitas, 12 condos, a bed and breakfast property, a beachfront restaurant, and more than 20 single-family homes.
Orchid Bay — a 114-acre bayfront residential resort community located in the Corozal Bay inlet — has sold an additional 99 single-family residential lots for development by a third party.
“With many parcels already sold or under construction in an affordable and in-demand vacation destination, it was clear to us that Orchid Bay is already performing well, attracting buyers looking to own a slice of paradise.”— Kevin Wolfer, president and CEO, Kennedy Funding
According to Wolfer, the remaining to-be-built phases include a mixture of villa residents, a luxury boutique hotel, bungalow residences, and two condominium buildings.
At present, Orchid Bay has also completed the construction of roads. It is also ready to expand an existing water treatment system and has to date connected a majority of lots to underground electric service.
Wolfer underscored, too, the risk his company took to underwrite the loan.
“Traditional lenders shy away from the legal, real estate, and financing challenges that accompany international lending, but a lender like Kennedy Funding has the necessary experience to successfully close loans abroad,” he said.
“With many parcels already sold or under construction in an affordable and in-demand vacation destination, it was clear to us that Orchid Bay is already performing well, attracting buyers looking to own a slice of paradise,” Wolfer continued.
He added that his company bought into Point Alegre’s vision after discovering “rising real estate values”.
“We are glad that we could leverage our knowledge and experience to support the continued growth of the Orchid Bay resort, which will help serve vacationers for years to come.”
This is the second loan Kennedy Funding has closed in Belize.