Komfie Manalo, Opalesque Asia:
Billionaire John Paulson’s hedge fund, Paulson & Co., announced plans to invest up to $1bn into Puerto Rico’s embattled economy over the next two years, particularly in real estate and resort.
According to Money News, Paulson & Co. is in the middle of a $200m deal to buy La Concha Resort, the Condado Vanderbilt and neighboring beachfront hotels in San Juan, the capital of Puerto Rico. Puerto Rico’s Government Development Bank owns a significant stake in the said properties.
Since September last year, the 58-year-old Paulson has expanded his investments on the territory after he took a stake in St. Regis Bahia Beach Resort and the Bahia Beach Resort & Golf Club.
Alberto Baco Bague, secretary of Economic Development and Commerce, said during webcast last week with bondholders hosted by the Government Development Bank, "Paulson & Co., continues to negotiate different opportunities in Puerto Rico. These commitments are over $1 billion, half a billion in 2014 and half a billion in 2015."
In October 2009, the GDB placed the value of the La Concha Resort and the Condado Vanderbilt properties at about $450m. The resort complex underwent renovation in 2004, including the construction of towers designed to be sold as condominiums.
The hedge fund manager’s interest in Puerto Rico is not only confined to its tourism pot......................
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