Trump property partner opens up in Prague

Trump property partner opens up in Prague
2. května 2016 • 12:00
The Czech National Bank has given the green light to the Resort Development Fund. The aim of the fund, owned by a former business partner of Donald Trump, is to attract investors to a Cape Verde Islands project worth a billion crowns plus

Last week saw the opening of the Prague representative office of British developer The Resort Group. Rob Jarrett, the real estate businessman who stands behind it as founder and CEO, is partly known for his links to American presidential candidate Donald Trump. His CV boasts of how he acquired and resold four floors of the Trump International Hotel & Tower in Toronto, Canada.

Jarrett is now looking to bring together investors in the Czech Republic for a luxury tourist project in the Cape Verde Islands, located in the Atlantic Ocean off Northwest Africa. The Resort Group can already boast of having built hotels with a value of two billion crowns on the African mainland. “Our main objective is to find agents and advisers which would then be in direct relationships with private and institutional investors,” Pierre-Philippe Möller, who heads The Resort Group’s Prague office, told E15. Investors would be invited to put capital into the project via the investment fund or directly.

The fund is internationally targeting a sum of EUR 50m, equivalent to around CZK 1.3bn. The Group already operates in Austria and Poland, while it is also addressing Russian investors.

The fund is offering a return of seven percent during the period of construction. After leasing begins, there will be a net annual income of five percent or one-half of the lease payments, whichever is higher, it added.

Jarrett founded The Resort Group on the eve of the financial crisis in 2007. Nevertheless, it was still able to create two five-star resorts in the Cape Verde archipelago with more than 1,600 rooms. The previous investment team worked with sums amounting to EUR 61m.

The Group has three new luxury accommodation sites under construction, while it is making preparations for another five. When the overall project is completed, it will have a portfolio of more than 6,400 rooms. The value of the entire property holdings will reach hundreds of millions of crowns.

Agreements with the Hilton and Melia chains have been reached by the developer for the operation of the accommodation capacity. The asset management is being handled by global real estate company Savills, while Deloitte consultants have contributed to the project.

 
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