High rollers raise $93m towards Sawgrass Florida golfing resort
IRISH investors have successfully raised $93m in equity to fund the prestigious $220m acquisition of a leading hotel and golfing resort in Florida.
The group of high net worth individuals funding the deal were assembled by RQB, a company led by Paul Pardy, Paddy Kelly and Niall McFadden.
Investors paid in on average $1m each to secure the Sawgrass Marriott Resort and Spa in Florida.
RQB is offering a projected internal rate of return of 25.1pc to 2009 with an overall return expected to be two and a half times any initial investment.
To achieve these returns, investor profit is projected to be $135m.
Sawgrass has planning permission for 180 condominiums to be developed at a cost of $113m.
The Irish backers are also investing $23m in renovating 348 rooms in the hotel, which is operated by the Marriott Group. Combined with other improvements net operating income at the major hotel is projected to rise sharply to over $20.5m with four years.
RQB America has been set up to manage the development of the Florida resort, which is the home of Professional Golfers' Association (PGA) Players' Championship, sometimes dubbed the 'fifth major'. The US-based company is led by David O'Halloran as well as Mr Pardy, Mr Kelly and Mr McFadden. Talks to acquire the hotel began several years ago.