IndustryLifestyle Hospitality, Opportunity Zone
Asset ClassReal Estate
Value of Investment$26,000,000 through INPR STO -to be announced
Culebra Life has negotiated an investment valuation to buy into the shovel ready project at a significantly discounted value of $110,000 per acre surveyed with paved roads, water, sewage, underground power-lines, and a cell tower. The intrinsic value of the location significantly de-risks the project, banking equity value on day one. The project with the infrastructure and hotel permits in place is in an advanced stage of development with a short timeline to completion.
The Culebra property is approximately 38 acres with eastern Caribbean views. The Puerto Rico Planning Board authorized: 1) a 30 room hotel on a 16,000 square meters plot, 2) 41 lots for residential-tourist villas, with two villas built and, 3) 24 residential units for low income Culebra residents.
All infrastructure work has been completed; paved streets; water and sewer; electric power, and telephone lines. All utilities have been installed underground
Culebra Life as a Puerto Rican Opportunity Zone project allows investors to defer capital gains for 5 years with an increase basis of 10% for holding the investment for 5 years; 15% for 7 years and a total deferral after 10 years.
A hospitality hotel license has already been approved for the Culebra Life project where Act 74 offered by the Government of Puerto Rico offers hotels and other leisure focused developments the following incentives:
10% of the invested amount as tax credits
Up to 90% tax exemption on income tax (100% tax exemption if business is located in Vieques or Culebra).
100% tax exemption on alternative minimum taxes and additional income taxes on undistributed income;
90% tax exemption from personal property taxes.
90% tax exemption from real property taxes.
Up to 100% tax exemption on excise tax on imported goods;
Up to 100% tax exemption on sales and use tax; and
Up to 100% tax exemption on municipal construction excise tax
Together these benefits make Culebra Life and investment worthy of a closer look.
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