The transformation of the old Hotel Coronas Playa into the modern Hotel Radisson Blu in Costa Teguise will be ready for December, when the new hotel will open its doors. The hotel will have 225 rooms of more than 40 square meters on the seafront.
The renovation and start-up of this tourist establishment in Lanzarote will mean the end of the ERTE for the almost 100 workers that the owning and operating company of the hotel had, as well as the creation of another 50 new direct and qualified jobs on the Island, while improving the competitiveness of the "Costa Teguise destination in Lanzarote".
The renovation has been possible thanks to a novel figure of indirect materialization of the RIC, through a collective investment fund.
First collective investment entity of the Investment Reserve in the Canary Islands
RIC Private Equity is the first collective investment entity of the Investment Reserve in the Canary Islands (RIC) promoted by a group of businessmen from the islands. The RIC constitutes a fiscal incentive for investment in the Canary Islands that implies a reduction in the taxable base of the corporation tax for the amount of the allocations made to the RIC in each tax period. This reduction is limited to 90%.
Through RIC Private Equity a total of 13 Canary Islands companies and self-employed workers have materialized more than 4 million euros of their allocations to the RIC to finance the remodeling of the hotel. Before the end of October, another 4 million euros of allocations to the RIC from another group of Canary Islands companies and self-employed workers will be materialized in the financing of said renovation. The objective is, according to Enrique Guerra, general manager of RIC Private Equity, "to complete the 12 million euros committed to the financing of said hotel renovation before November 15".
The Vice President and Minister of Finance of the Government of the Canary Islands, Román Rodríguez, recently highlighted in the colloquium organized by RIC Private Equity, in Santa Cruz de Tenerife, the importance of the indirect materialization of the RIC in the Canary Islands in projects such as hotel renovation.
"The collective indirect modality of the RIC is an instrument of high legal security for the businessman or professional who wishes to take advantage of this possibility and allows to group Canary Islands capital from small investors to promote other businessmen who have large-scale projects and need financing" (Román Rodríguez).
"From the Canary Islands Government we are supporting these initiatives, such as the one carried out by RIC Private Equity, because the collective and indirect materialization of the RIC is being very useful for the Canary Islands, because in this way we are launching strategic and very important investments in the Archipelago".
Commitment to rehabilitate hotels in the archipelago
RIC Private Equity's commitment to the first industry in the Canary Islands, tourism, is being decisive, as it has promoted approximately 50% of the hotel rehabilitation projects authorized by the Government of the Canary Islands in the last two years, financed thanks to the indirect and collective materialization of the RIC.
In addition, RIC Private Equity is currently processing the declaration of suitability for the financing of another hotel rehabilitation project in the south of Lanzarote, specifically in Playa Blanca, whose opening is also scheduled for next December, hoping to obtain in time the mandatory binding report from the State Tax Administration Agency (AEAT) to complete the financing of 10 million of said project. "The Special Delegate of the AEAT, Carmen Guillén, is working intensively to achieve this objective by putting her entire team in this effort," acknowledges Enrique Guerra.
The ultimate goal of RIC Private Equity is to offer a solution to the materialization of the allocations to the RIC made in 2019, charged to the profit obtained in 2018, and that can be materialized in productive and strategic investments for the Canary Islands, such as the renovation of the hotel plant (hotels such as Radisson Blu Lanzarote, Mynd Yaiza and Puerto Azul), which as a whole will allow the maintenance and creation of 500 stable jobs linked to its operation.
The general manager of RIC Private Equity insists that the priority "is to unite the supply and demand of money in the Canary Islands, putting in contact first-rate companies that wish to finance their expansion and growth plans, with those other companies and self-employed workers of the Islands that, having the economic resources pending materialization, do not end up being clear about what they should invest them in".
In this way, through RIC Private Equity, "companies in the sector can face the financing of their investments with the flexibility required by a context of uncertainty such as the current one, and investors through the RIC can obtain a financial-fiscal return that allows them to fight with an unaffordable inflation in the rest of their investments", says Enrique Guerra.
