Crystal Lagoons® Latest Signings
The new Public Access Lagoons™ business model, also known as PAL™, created by the multinational innovation company Crystal Lagoons® has become a new long-term investment alternative, with return on investment above 50%.
This has been identified by institutional investors, investment funds, family offices, insurance companies and large real estate developers facing the complex challenge of finding long-term investment alternatives with attractive returns.
For this reason, large investors from the United States, Asia, the Middle East, Oceania and Latin America have taken interest in Crystal Lagoons new licensing model, which grants them exclusivity for a specific geographic area, and a specific volume of projects. These contracts are operationally replicable anywhere in the world, and have the additional value of having a high social impact, as they reactivate hubs and generate employment.
“The attraction for investors lies in the considerably higher returns, compared to their frequent locations in real estate sectors or concessions. PAL represent low investment and risk, since as the projects are built, they quickly generate utilities and produce a financing pyramid, which allows, with low initial investment, to create a company with a very high present value,” explains Cristián Lehuedé, Executive Director at Crystal Lagoons.
In fact, in just six months, Crystal Lagoons has signed five master licensing contracts in Japan (30 lagoons), Korea (30 lagoons), the United States (16 lagoons), Mexico (30 lagoons) and Central America (18 lagoons), with a present value of US $3.8 billion. Company’s projections for the next 30 years is to license 4,610 PAL projects around the world.
The multinational is also in advanced negotiations in South Africa, Australia, the Middle East (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates), Israel, Italy, Spain, Portugal, Nigeria, Kenya, Ghana, Cambodia, Botswana, Pakistan, Brazil, Colombia, Peru, among other countries, with projects that total an additional US $3.7 billion once all PAL projects are operational. This new model is generating an exponential increase in sales for Crystal Lagoons, and is generating a significant structural change for the company.
The profitability of this new model is based, on one hand, on the massive public access with ticketed entry to the beach and, on the other hand, on the intensive commercial usage, naming rights and leasing of areas overlooking the lagoon, enabled for events, fairs, concerts, weddings, shows, among other activities.
For this reason, investors have formed new companies to execute, operate and market PAL projects in their region, which represent an immense business potential, considering that the events industry generates US$ 2.5 trillion annually, the wedding industry, approximately US$ 300,000 million and concerts, US$ 31,000 million.
The key difference that PAL offer is their scenic beauty, compared to the traditional closed, underground event centers. They soon become the most beautiful places in the city, ideal for carrying out events, launches, fairs, food halls, hosting weddings, concerts, day clubs, etc. in a blissful setting. The lagoons are lit up at night and offer numerous venues for events, such as the beaches and terraces overlooking the illuminated lagoons, transparent domes, peninsulas within the lagoon for weddings, as well as vast array of gastronomic events, retail stores, beach clubs and cultural and recreational activities.
“PAL change the urban way of life of millions of people by inserting a part of the ocean within walking distance of their homes, much like what happened 200 years ago, when the first city parks were created in England, bringing natural forests to the cities. Today, every city in the world considers parks. The same phenomenon is occurring with Public Access Lagoons, which incorporate the beach into the design of cities, saving people from having to take a plane or a car to go to the beach, with the consequent drop in the carbon footprint as well as reducing human impact on the biodiversity of natural areas,” concludes Lehuedé.