About the Group

Our client, the developer has more than 20 years of experience in developing, building and operating hospitality assets with eight existing 5-star branded hotels, sport complexes, real estate golf resort and hunting sites. Its existing hospitality and tourism related assets are worth approximately USD 300m. The group’s vision is to develop several more luxury branded hotels in strategic destinations within the next 10 years.

About the 5-star Safari Lodges and Tented Camps in Tanzania

The company is developing and constructing the 5-star Safari lodges and tented camps with 147 units under license agreements with Tanzania National Parks Authority (TANAPA) located within Tarangire National Park (Kitbong Hill), Serengeti National Park and Lake Manyara. It has already secured the management agreement with the world-renowned hotel brand to operate, manage and market the hotel. The company has already obtained its EIA licences for the three sites to start construction. The project is a sustainable tourism investment which offers environmental and social inclusion for the benefit of the Tanzanian people and SMEs businesses in the three regions, as well as opportunities to generate significant returns, notably in the areas of energy, water, waste and biodiversity. The opening of the 5-star Safari lodges and tented camps is scheduled for the first quarter of 2024. The construction company has already been selected through a tendering process.

The total cost of the project is estimated at USD 77.8 million. The company will invest USD 23.3 million in the project. The Company would like to raise the sum of approximately USD 54.5 million as debt financing, re- construction loan. The required funding will fully be used to finance the construction of the three Safari lodges and tented camps located in Serengeti, Tarangire and Lake Manyara National Parks with a total number of 147 units.

The financial projections have been prepared in a conservative way with the sales /turnover based between 46% to 55% of occupancy.

The calculated rate of return is 3.57 and Project IRR is 14% based on the conservative financial projections we have prepared.

We believe that once the project would be launched in 2024 there is no doubt it would be a success given that the quality will be higher compared to existing competition.

Please note at this stage the company has been able to secure part of the financing from a Bank which is willing to go through syndication in order to raise the full loan amount. The company is open to discuss further with potential lenders and investors.

For more information, please contact Ibrahim AYOUB