Michael Lee Chin's Caribbean equity fund has closed a US$35-million acquisition deal for part ownership of a condominium complex under construction in Dominican Republic, a month after AIC executives said an announcement was pending.

The purchase was executed through Portland Private Equity, described as the private equity manager of the AIC Caribbean Fund (ACF).

"We are bullish on this development as it offers many advantages compared to the other tourism-dependent real estate projects in the region that we looked at," said Portland managing partner Kip Thompson.

The deal gives Portland access to Grupo Metro's board, but the parties did not disclose the number of seats, nor what share ownership of the beachfront condo complex the US$35 million gave the company.

Bucked the trend

Known as Las Olas and located at Juan Dolio, some 35 kilometres outside of Santo Domingo, the complex is being developed by Grupo Metro, which, on November 4, trumpeted the deal, saying it bucked the trend for projects that were having to close down in a depressed credit market because of low sales or inadequate financing.

"Las Olas construction is scheduled to reach the halfway mark before the holidays, so the timing of this capital injection coincides perfectly with our need to purchase important components such as fixtures and finishing elements," said Luis Jose Asilis, CEO of Group Metro, in a prepared statement.

"This will allow us to capitalise on cost-saving opportunities through bulk advance purchasing of materials, which will be passed on to our clients in the form of a higher quality end product."

The development comprises 227 apartments on sixteen levels.

"The Juan Dolio area is fast becoming a suburb to Santo Domingo and the affordable luxury emphasis of Las Olas opens up the opportunity to local and ex-pat Dominicans to buy a condo as a second home," Thompson said.

The emergence of Barbados-based Portland Private Equity suggests that the US$230-million Caribbean fund might have gone through some restructuring, but the fund managers had not, up to press time, responded to requests to clarify the issue.

AIC is contemplating a third fund and is negotiating with potential backers.

The condo complex deal marks an expansion of AIC Caribbean Fund's foray in Dominican Republic Another of its investments there includes a property development firm called Moya Supervisiones y Construccciones SA.

ACF is invested in companies that are said to do business in some 21 markets in the Caribbean and Latin America.

business@gleanerjm.com