An Australian podcast specializing in finance and investment, Wealthi, highlighted the benefits of Crystal Lagoons® new business model. During a recent interview, Cristóbal Baixas, the multinational’s Director of Corporate Development, described the new concept known as Public Access Lagoons™, also known as PAL™, and why these lagoons have come to be known as the world’s top amenity.
- What figures validate the value of these crystalline lagoons?
We have seen that the value per square meter and the value of properties at developments anchored by crystalline lagoons increase exponentially.
Meanwhile, the sales velocity of real estate projects increases above 70%.
These amenities increase the density of these projects, and an example is San Alfonso del Mar, a project that originally contemplated 400 units but ended up totaling 1,400. The value of these properties doubled shortly thereafter.
In the case of hotels with a beach, studies have demonstrated that their rates, occupancy and consumption of food and beverages grow by up to 200%, compared to second-row hotels. This indicates that in-lower value land, a hotel that incorporates a beach and PAL elements achieve very attractive returns.
A clear example is that every project with crystalline lagoons in the US, during the sales phase, have classified among the 50 best-selling and awarded in the country.
We have two business models depending on whether they are real estate or public access projects, which are flexible and have allowed us to grow exponentially.
- What is the present of Crystal Lagoons?
After revolutionizing the real estate sector for 10 years, Crystal Lagoons began a new corporate phase, revolutionizing cities with the Public Access Lagoons, also known as PAL.
These projects are highly valued as they greatly aid the transformation of malls, reconverting retail spaces, reactivating the flow of the public to entertainment parks, taking advantage of vacant land, space found at the center of racetracks, at golf courses or any company that has disused land and wishes to convert it into a more profitable business.
The PAL are monumental crystalline lagoons suitable for swimming and nautical sports, surrounded by white sands, which create beach life a few meters from home and become the most beautiful place in the city.
PAL are ideal locations for events, launches, fairs, food-halls, weddings, concerts, dayclubs, etc. in an idyllic environment and multiple settings, such as beaches, a wedding peninsula, terraces, domes, as well as gastronomy, retail, beach clubs, amphitheaters and recreational and cultural activities, making them the meeting point of the 21st century.
- How is the PAL business model implemented and what are the benefits?
The model is implemented through master licensing agreements, which involve a relevant number of PAL for specific geographical areas.
- What PAL projects can you talk of?
The Master PAL model has captivated powerful economic groups worldwide, generating higher sales than Crystal Lagoons has in all its previous history.
Since October 2019, projects have grown exponentially thanks to the PAL master agreement model, which today represents 90% of the firm’s contracts. In fact, since then, we have signed 130 projects.
Among the licensing contracts that the company has signed in recent months are a master agreement for 16 projects in the United States; in Korea, 30 PAL nationwide; in Pakistan there will be 15 projects, and in Central America there will be 18 PAL to be built spotted across eight nations.
As a consequence, PAL licensing contracts have become the business of the future.
- Why do you say that PAL are the business of the future?
Investors from all over the world have identified these developments as a new long-term investment alternative, with rates of return never seen in other industries, low initial investment and limited risk.
Additionally, they grant certainty in the face of two of the main current apprehensions faced by investors, and that is that PAL have proven to be Amazon and Covid proof.
In addition to the master agreements signed, people’s interest in PAL can be confirmed with the enormous success of the first PAL projects in the US, Epperson and Lago Mar, which sell US $50,000 daily in ticket sales for 1,200 visitors, even though they had to limit access.
From a capital standpoint, as projects are built, they quickly generate profits, enabling pyramid financing. With a low initial investment, a company with a very high present value is achieved.
- Beyond being a good business, what do PAL contribute?
PAL are highly valued for the transformation of malls, reconverting retail spaces, reactivating foot traffic to entertainment parks, taking advantage of vacant land, spaces at the center of racetracks, golf courses or any company that has unused land or wants convert it to a much more profitable business such as PAL.
For visitors, PAL offer new public spaces of value which improve the quality of life to millions of people, providing social inclusion, recreation and relaxation, especially in landlocked cities, often congested and lacking in inviting public spaces.
These projects are not only the business of the future, they are also the sustainable recreational activity of the future uniting beach life, water sports and entertainment with the additional benefit of being just steps from home.
Additionally, they contribute to reducing the impact on biodiversity of tourist destination such as beaches or forests that, by receiving fewer visitors due to these new entertainment amenities, contribute to reducing the carbon footprint by reducing travel by plane and car to natural areas.
To see and listen to the full program: Wealthi