IDB and Cisneros Real Estate collaborate to fund tourist real estate development in Miches

Tropicalia Miches

IDB Invest has partnered with Cisneros Real Estate to provide US$134.6 million in financing to Four Seasons Resort and Residences which is part of Tropicalia, a sustainable mixed-use resort under development in the Dominican Republic. The financing consists of US$49 million from IDB Invest complemented by US$85.6 million mobilized from local banks and international financial institutions.

For a total of US$212.4 million, the mixed-use tourist complex, which combines multiple uses such as commercial and cultural in a single space, is expected to create more than 2,000 jobs during construction, 400 additional jobs during operations and an inclusive supply chain made up of dozens of local entrepreneurs and farmers. Up to 70% of products and services will be sourced domestically, with more than a third coming from local micro, small and medium-sized businesses, contributing to a circular economy and prosperity in the region.

The IDB Invest financing package includes the mobilization of $85.6 million from local banks, including Banco Popular Dominicano, Banco López de Haro and Banco BDI; and international financial institutions including DEG, ILX Management, Cifi and National Cooperative Bank through a mezzanine and senior lending structure.

Tropicalia is located in the municipality of Miches, a thriving beach destination with unique ecological characteristics on the southern coast of Samaná Bay, just 80 kilometers (50 miles) west of Punta Cana. The resort, which will be operated by Four Seasons Hotels & Resorts, will include a 95-room hotel, 25 private vacation homes managed by the chain (branded private residences) and a series of related services.

With a focus on socioeconomic inclusion and sustainable development practices, Tropicalia implements environmental and social management systems that guide the design, construction and operation of the resort, from biodiversity to waste and water management, air quality and greenhouse gas emissions.

The project’s non-profit organization, Fundación Tropicalia, has dedicated more than a decade to the well-being of the region through a variety of educational, socioeconomic and community programs through innovative projects in agriculture, gender equality, education, environment environment, entrepreneurship and microfinance.

“We believe that this sustainable mixed-use resort reflects a unique value proposition for the expansion of responsible low-density tourism in the Dominican Republic. Our aspiration is that its high development standards anchored in solid principles of sustainability can have a demonstrative effect by serving as a model for the development of responsible tourism in the Caribbean and beyond,” said James Scriven, general manager of IDB Invest.

Tropicalia builds on the legacy of Cisneros’ long-term commitment and development approach, supporting the socioeconomic sustainability of the community of Miches and the surrounding region. “Over the past 15 years, Fundación Tropicalia has sponsored a wide range of regional programs that promote education, gender equality, economic participation, cultural identity and environmental awareness,” said Adriana Cisneros, executive director of Cisneros. “One of our emblematic programs ‘I am a girl, I am important’, seeks to empower young girls at risk by providing them with tools to avoid early pregnancies, gender violence and low self-esteem, promoting gender equality and inclusion from an early age in the region”.

As part of its development impact mandate, IDB Invest provides technical assistance to this program to increase women’s participation in economic activities and expand their access to the labor market.

This agreement demonstrates IDB Invest’s support for completely new transformative and sustainable tourism projects that produce a catalytic effect for the development of emerging destinations in the Caribbean and Latin America.

The operation is expected to contribute to these United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Responsible Production and Consumption (SDG 12) and Partnerships for the Goals (SDG 17).

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