Publication Date: March 15 2017
Subject Matter: Recovery Plan & Project Management - Proven Performance
Calgary, AB, Canada – CAPEX-WORLD Corp ("CAPEX") announced today that it is successfully implementing the final steps of a recovery plan for a complex and sustainable construction project of approximately MEX $25,000,000.00 in Tulum Q Roo, Mexico, which was underperforming (the “Project”). Empowered by CAPEX, this Project was able to access to up to MEX $6,000,000.00 in interim finance, has recovered and since March 1, 2017 is successfully operating a 33-room high-end boutique hotel which is a desired destination for celebrities and the world’s elite.
In June 2016, a group of prominent international investors from Europe and North America who are active in the Hospitality industry initiated this Project. In December 2016, CAPEX was contracted to assess the Project on all levels as well as coach management and assist stakeholders to agree on the amended budget and implement an immediate recovery plan on how to complete this development at the earliest possible moment to accommodate existing reservations (the “Recovery Plan”).
Through the diligent execution of the Recovery Plan and beginning from almost ground zero, this Client is now in the final stages of completing this development as well as the corporate, legal, financial, banking and tax restructuring. This also included the provision of updated infrastructure that delivers electricity, water, gas, sewer, communications and irrigation to remote locations throughout the Project.
Today, this eco-experience consists of 33 luxurious accommodations, a world-class restaurant, a three-story lobby immersed in nature, reception area, a spectacular 70-ton pool, onsite administration offices, storage, public bathrooms, beach bar, a private beach area and other areas and or concepts that together establish this hotel’s unique look and feel and provides an exceptional guest experience.
The initial most challenging missions in this endeavor were to assist this Client to urgently remedy the following deficiencies, which were created before CAPEX was contracted. Capex worked diligently to: (1) restructure up to 40 incomplete verbal agreements with independent contractors affecting millions of pesos in deposits and or payments for partial urbanization and or construction work. (2) Remedy substantial safety and functionality items in the urbanization and construction of the Project and ensure building code compliance. (3) Immediately facilitate MEX $6,000,000.00 in interim finance for this Client with no history or credit in Mexico. (4) Agree with all parties on the changes and commitments necessary to bring all transactions and this Client’s activity to fulfill any requisite and or to comply with any applicable law necessary for this Client to operate the Hotel in a safe and legal manner. (5) Protect and guide our Client to navigate its way in Mexico within the private sector and or with authorities in an amicable manner to resolve disputes and operate in a cost-effective manner.
CAPEX’s powerful network within the private, public and government sectors together with our conviction, integrity and expertise in project management, sustainability, negotiation, business development, domestic and international law and high practices of corporate governance and social responsibility enabled us to achieve results of this quality and scale in such a short period.
We shifted the risk balance in favor of our Client In less than 45 days considering Financial Progress (“Payments to providers as a percentage of the total”) versus Work Advance (“realized onsite work performed as a percentage of the total work”) which is an elementary condition to enforce contracts in an assertive manner. Utilizing strong negotiations and following feasibility studies, we have obtained millions of pesos in discounts for this Client, obtain guaranties and significantly improved quality and delivery times.
CAPEX is assisting this Client to complete a process to recover security deposits and redeposit most transactions and make all payments from the Client’s newly incorporated Mexican tax account to the contractor’s and or provider’s tax account. This will enable the Client to recover up to 16% in direct sales tax and up to another 30% in income tax from the total investment. These transactions will now follow written agreements and be supported by proper invoices and other relevant corporate documents, that without such, authorities would not recognize the Client’s investment and subsequently not allow the Client to recover any such amounts as permitted by law. The resulting benefits to the Client are substantial on many levels and we are very pleased to initiate and facilitate this corporate process.
In a cost-effective manner, CAPEX has promoted the use of sustainable technologies and ventures with other CAPEX’s clients that are now eliminating the need for this hotel to use up to 4,000 inefficient water, sewage and diesel delivery trucks to achieve 98% less in aquifer contamination and up to 97% reduction in carbon emissions for many years to come. During the construction, we implemented strict policies to protect vegetation and wildlife to ensure minimum impact; now this Hotel is an operating reality and remains true to its core values.
We thank our Client for the opportunity to be part of this endeavor and we thank CAPEX’s advisors and independent affiliates who always give their best, work day and night to make this Project a reality and constitute another reference point in CAPEX’s prestigious accomplishments.
This section contains selected information relating to CAPEX WORLD CORP ("CAPEX"), CAPEX’S's clients and or CAPEX’S affiliates which may be of interest to you when working with, or while considering, CAPEX in your business and or with your social responsibility relating activities. When you access this section, you agree entirely with the terms and conditions set forth in this website.
for and on behalf of
CAPEX-WORLD CORP.
Daniel Portnoy
President & CEO
Calgary, AB Canada
