The Cipriani group signed this Friday at the Ministry of Economy and Finance (MEF) the concession contract for the operation of a private casino for 20 years, which is conditional on the construction of a luxury hotel on the grounds of the former San Rafael hotel in Punta del Este.
After the signing of the contract, it remains for the company Fosara —the name of the company of the Italian Giuseppe Cipriani— to carry out the deposit of a guarantee amounting to US$ 7.8 million, as he knew The Observer.
What deadlines are used to start the works? Sources close to the company told The Observer that the next stage will focus on the presentation of the new architectural project before the Municipality of Maldonado.
Last April, a preview of the new idea had been released. In principle, this version eliminated the two horizontal towers that were articulated with the old hotel building, and incorporated three vertical towers. One of them would be located exactly behind the new luxury hotel, and would be 237 meters high. The second tower that would be located further to the east would be 170 meters high, and it was planned to erect a third building 125 meters high.
The reformulation of the residential area headed by the architect Rafael Viñoly also requires a new exception for high-rise construction that must be approved by the Departmental Board. In July 2018, an exception had been approved for 91 meters, 20 more than what was already authorized in the area, but which was never used.
First, it would begin with the reconstruction of the hotel and the foundation where the private casino – key to the business – and the rest of the services will be located. And only later, with that part already operational, will it go on to the second stage in which the first of the three towers would be erected, to the extent that there is demand.
Leonardo Carreno
Giuseppe Cypriani
financing
The base investment that is managed today is about US$ 200 million. That is the floor for the first stage of the hotel, casino and amenities that is included in the tender. For stage two, the investment will depend on what type of towers are built. The sources explained that financing in this type of project is always given through banks and private investors from abroad. “In order to have external financing, you have to have a concrete and closed project, which is what was missing here. Today’s stage is very important. This is the first step for you to really move forward. The financing is going to be structured now that the project is a reality”, affirmed one of those consulted. “Today the seriousness of the company and its intention were reaffirmed,” he added.
Months ago it had transpired that there were investors with whom they were negotiating. In addition, there was the possibility that one of those investors would join the project not only as a financier, but also as a partner. On the other hand, the Cipriani group is about to finish paying the US$ 50 million that it agreed to pay at the end of 2018 for the purchase of the shareholding package of Fosara, the previous owner of the San Rafael hotel.
Online game
A bill under study by Parliament empowers the Executive Power to explode directly the online game in casinos and to authorize it in concessionaires that already have licenses for face-to-face gaming, both in the mixed system and in the private system. In case of approval, the Cipriani firm, like other operators, may apply to apply for a license. “We have the expectation that this will be approved,” said one of the sources.
round trips
Maldonado Intendancy
The second project presented in mid-2018.
The previous project it foresaw the construction of two horizontal towers articulated with the old hotel building. One of these towers was perpendicular to the Rambla Lorenzo Batlle Pacheco and had a maximum height of 60 meters. The other tower was parallel and its maximum height was 91 meters. The exception approved in July 2018 by the Board for this design involved 21.4 meters more than what was already enabled in the area. Before, a first initiative that was the original included the construction of a 67-story skyscraper 300 meters high, and three other low buildings. That option was never considered at the Board, because it was ruled out by the Italian investment group almost immediately after it was presented in May 2018.
“sign of trust”
The Municipality of Maldonado “received the news of the signing of the contract with gratitude and satisfaction” between the MEF and Fosara SA “In times when the world tourism industry is in check, the signing of a contract in which an investment of more than US$250 million is committed is a great sign of trust in Uruguay and in Maldonado that we must highlight,” said the mayor of that department in a statement. “Enterprises that generate work and boost the economy of the department and the country will continue to be supported,” he added.
