The Government of the Canary Islands has approved the issuance of shares by the first collective materialization entity of the Canary Islands Investment Reserve, RIC Private Equity, destined to finance the rehabilitation of the obsolete 1-star Sun Park apartment complex in Playa Blanca, in order to transform it into a new and modern 4-star superior hotel: MYND Yaiza.
This is the second hotel on the island to use this novel financing formula after the new Radisson Blu Resort Lanzarote in Costa Teguise. The reconversion of the Yaiza complex is involving an investment of approximately 12 million euros, of which just over four million will be possible to be financed thanks to the collective materialization of the Investment Reserve in the Canary Islands (RIC) of several businessmen and self-employed professionals from the islands.
This new hotel establishment, which plans to open its doors on December 16, is the first MYND brand hotel in Lanzarote, operated by the manager Canarian Hospitality, will have 660 accommodation places, with two à la carte restaurants, three bars, a spa, four swimming pools and an aquatic playground, a gym and a sports area that will include a cycling center.
In this way, it is estimated that MYND Yaiza will favor the creation of more than one hundred new jobs in the island's tourism sector, which will also be financed with RIC funds, in June of next year 2023.
This declaration of suitability takes place once the State Tax Agency issued, on November 17, the mandatory favorable report binding on the MYND Yaiza financing project.
Radisson Blu Resort Lanzarote was the first
"The island of Lanzarote is in luck, as this new declaration of suitability from the Government of the Canary Islands for the indirect and collective materialization of the RIC in a new hotel renovation is added to the one previously approved for the renovation of the new Radisson Blu Resort Lanzarote in Costa Teguise," highlights the General Director of RIC Private Equity and tax expert, Enrique Guerra.
"With these two hotel renovation initiatives promoted by the RIC materialization of businessmen and self-employed professionals from the islands, Lanzarote faces an important tourist recovery from this year 2022, offering more than 1,000 new high-standing accommodation places and the creation of new direct employment for almost 250 workers."
Enrique Guerra also recalls the importance of taking advantage of the savings generated by one of the most important tax incentives in the Canary Islands to support the economic and social development of the archipelago and its main industry, the hotel industry. "Our mission is to channel the materialization of the RIC of those taxpayers who lack their own business projects where to invest towards those companies that do have particularly large projects and that are strategic for the islands, but need to finance them with the flexibility that they do not find in traditional bank financing," he explains.
It was with this purpose that this formula of indirect and collective investment of the RIC emerged at the end of 2014, under the umbrella of fiscal security granted by the mandatory binding reports of the AEAT and the Decree of Fiscal Suitability of the Government of the Canary Islands, in order to achieve greater efficiency in the use of the Reserve for Investments in the Canary Islands.
