CEIBA fully invested – CEIBA Investments Limited says it has now successfully deployed all of the £30m raised in its IPO. The company repaid the outstanding EUR30 million bridge loan (that was previously provided by its largest shareholder) in order to expand their interest in the Meliã Las Americas, Meliã Varadero and Meliã Sol Palmeras hotels (the Varadero hotels). In addition, the merger between the Cuban joint venture company Miramar S.A. and the joint venture company that owned the Varadero hotels, required them to make a capital contribution to Miramar S.A. (CEIBA’s interest was over US$18 million). As part of the merger, the land leases of the hotel properties in Havana and Varadero were extended to 31 December 2042.
With respect to the project to develop the 400 room hotel Meliã Trinidad Playa (Province of Sancti Spiritus, Cuba), the company paid the remainder of its outstanding (US$3.4 million) capital contribution to the Cuban joint venture company TosCuba S.A. and paid out an additional US$4.8 million under a construction finance facility. The construction of the hotel officially started in December 2018 and is due to be completed in December 2020.
CEIBA Investments expects to announce its audited NAV and final results for the year ended 31 December 2018 in April 2019.
John Herring, chairman, said: “We are very pleased that we have fully deployed the proceeds of the IPO and have completed the merger to join our profitable, operational hotels in Havana and Varadero and that the property leases of the hotels have all been extended up to 31 December 2042. We are also pleased that construction of our 400 room hotel project in Trinidad (Cuba) has started. It certainly seems that we are on track on all fronts.”
CBA : CEIBA fully invested
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