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CEIBA says Cuba close to reopening its borders and tourism industry

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CEIBA Investments (CBA), the real estate company focused on Cuba, has released a trading statement, in which it look at the state of the pandemic in the country, Cuba’s role in helping other countries, and the current state of the company’s trading, operations and investments.

Cuba close to a staged reopening of the tourism industry and national borders

As at 5 June 2020, CBA notes that Cuba reported 2,133 confirmed covid-19 cases and 83 deaths resulting from the coronavirus. With no deaths reported in the last week and 11 of its provinces reporting the absence of new cases during the last 15 days, it is anticipated that Cuba is close to announcing a staged reopening of its tourism industry and national borders.

The company notes that since the outbreak of the covid-19 pandemic, Cuba has sent more than 2,500 doctors and nurses to 26 countries, including to Italy, Mexico and South Africa.

Trading, operations and investment update

CBA released the following:

  • “During the first five months of 2020, the operational results of the Miramar Trade Centre surpassed the results during the same period in 2019;
  • The Meliã Habana hotel has remained operational with a limited number of rooms (for essential workers and other authorized travelers) and one restaurant providing take-away meals;
  • The Sol Palmeras hotel, located in Varadero, Cuba’s prime resort destination, which closed at the end of March 2020, will likely be amongst the first hotels in Varadero to reopen in Q3 2020;
  • As at 5 June 2020, an aggregate amount in excess of US$40m has been invested in the Cuban hotel joint venture TosCuba S.A. and the construction of its 400 room luxury beachfront “Meliã Trinidad Península” hotel is now more than halfway completed and expected to open by the end of Q3 2021;   
  • The company is proud to announce that the prestigious 2020 Cuban National Environmental Quality Award was presented to the hotel Meliã Las Americas by the Ministry of Science, Technology and environment of the Republic of Cuba on the occasion of World Environment Day. The award confirms the profound commitment of each of the company, the manager and Meliã Hotels International S.A. to make sustainability an intrinsic part of its business;
  • In 2019, Melia Hotels International achieved the highest possible score for companies active in the global travel & tourism industry in its review by SAM Corporate Sustainability Assessment.”

About CBA

CEIBA Investments began trading on the London Stock Exchange in October 2018. It is an existing investment company focused on real estate investments in Cuba. The company is the pre-eminent foreign investor in Cuban property. Its directors believe there is a window of opportunity to invest in expanding its portfolio while competition from US investors is curtailed by their government’s policies.

CBA is targeting (but not guaranteeing) total shareholder returns of between 12.5% and 17.5% per annum (in US dollar terms) and a 4% dividend yield on the issue price.

The directors believe that Cuba is at the beginning of a period of profound change. However, it is not easy to get direct exposure to Cuba. Over time, CBA has become the largest foreign holder of commercial real estate assets in Cuba.

CBA: CEIBA says Cuba close to reopening its borders and tourism industry

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