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| The only golf course in Havana. |
Golf in Cuba has been talked about for many years but building golf
courses in Cuba requires a delicate mix of Capitalism and Communism.
The Capitalists aren’t going to invest hundreds of millions of
dollars in development and the Communists don’t want to give up
government owned land and allow for “inequalities” in the Communist
system. Currently there is a government owned golf course in Havana for
foreigners and the
Varadero Golf Club.
Until recently, foreign owned golf course development in Cuba was all talk and no action but that could be changing. Maybe…
The Cuban government has recently announced the easing real estate
ownership laws for foreign investors by allowing 99 year leases of land,
villas and other property. This allows buyers to get bank financing so
now developers have the incentive to build the golf courses so they can
sell the villas, condos, timeshares etc that will compliment them.
However, the Cuban property laws have not yet been published so
developers are preparing for golf course development but until the laws
are published, no one knows the details of ownership. Also, no
development group has received final approval from the Cuban government.
ALL are in some phase of “negotiation”. So, is this time any different?
Here is the summary golf course development projects currently “in
development” in Cuba, from oldest to newest.
Leisure Canada
From
Business Week company description:
“Leisure Canada Inc. engages in the development of hotel and resort
properties in Cuba. It also develops golf courses. The company was
founded in 1986 and is based in Vancouver, Canada”.
From this
1999 Leisure Canada press release:
“The Le Meridien Village Jibacoa will form the cornerstone of Leisure’s
5.5 sq. km property in Jibacoa, Cuba, with an anticipated start of
construction in September 1999. To add to this, the Company plans
additional 1600 vacation ownership golf villas and condominiums,
strategically located around two golf courses and marinas.”
In the 25 year history of Leisure Canada, the company has NEVER broke
ground on ANY project in Cuba and its entire business model is real
estate and golf course development in Cuba. Now the company is trying to
raise “working capital”.
Note that their stock has been flat or down since the Cuban government
started announcing favorable news to golf course developers. One would
think that this publicly traded, Cuba focused development company’s
stock would jump on such news but savvy investors with an eye towards
Cuba know that what is said and what is done in Cuba are two VERY
different things. However, one would expect this stock to pop when the
Cuban government actually announces that a golf course development
project has actually broken ground in Cuba.
Carbonera Club
From a June 2008 article: “A British company in which Sir Terence
Conran is involved has set up a strategic partnership with the ministry
to develop the first of several golf resorts on the Caribbean island.
The Carbonera Country Club Resort, which is due to open in 2011, will be
developed by Esencia Hotels & Resorts. Carbonera is one of five
golf projects in Cuba given the go-ahead by the authorities, three of
them by Spanish developers and one by a Canadian company.
The
Carbonera Club press release from the same time “Construction of the Carbonera Golf & Country Club will commence in 2009.”
Nope. Never happened. So, are things different now with Standing
Feather’s Loma Linda Golf Estates (see below) announcement? The Cuban
government has made positive statements about golf course development
and real estate for sale in Cuba but until the Cuban government itself
makes an announcement that ANY golf course project has begun, don’t
believe the hype.
La Altura
A British-Spanish group hired Foster + Partners to design a gigantic
golf course community near Bahia Honda west of Havana featuring three
golf courses and a 200-slip marina. Estimated cost to be $1 billion with
plans to spread out over more than 1000 hectares featuring more than
2000 apartments and timeshare units.
According to CubaNews.com, the
units will be in clusters of 964 units near the golf courses, 450 near
the marina, another 308 adjacent to a lake and another 300 next to a
planned golf academy. In addition, 293 single-family homes are planned
on parcels of 1,500 to 2,000 square meters each.
Also planned are two five-star hotels—a 300-room oceanfront tower and
a 120-room property near the golf courses. In addition, the resort will
have its own airstrip, which currently measures 800 meters. That runway
will be extended to between 1,800 and 2,000 meters, large enough to
accommodate Boeing 737 or Airbus 320 jets capable of carrying 150-200
passengers each.
Bello Monte
The Bellomonte project on Guanabo beach, just east of Havana, calls
for about 800 units ringing one golf course, plus a small marina.
Guanahacabibes
According to CubaStandard.com, La Playa Golf & Resorts S.L. is
planning to build a resort centered around seven golf courses. This is
proposed to be a giant 4,000-hectare project including apartments,
villas, townhouses, three boutique hotels, a golf academy, marina, sport
fishing club, and a horseback riding center.
Loma Linda Golf Estates
The most recent announcement by Standing Feather from Ontario Canada
states that this company is ready to break ground after almost a decade
of negotiations. The 99 year lease plan was important to Standing
Feather since the company not only wants to build a golf course but
wants to sell villas and and condos. All golf course developers will
want to sell villas and condos, that’s where the money is… not from fees
for rounds of golf.
While the
New York Times reported
that Standing Feather had received “preliminary approval” with the
Cuban government, the Globe and Mail reports that the company is “hoping
to finalize a deal this Augu
st to create a joint venture”.
The Times article goes on to say that the company “signed a
memorandum of agreement with the Cuban government in late April and will
be the first to break ground, in September”.
From the
Standing Feather website,
the company is in the “final stage of negotiation with our Cuban
partners, and the imminent formation of the Cuba-Kanata Golf SA joint
venture”.
Summary
Until the Cuban government itself makes an announcement that
construction of ANY golf course has begun, we’ll all have to be patient
because everything else is either posturing or simply hype. Why? Because
first, this is Cuba we are talking about so nothing can be
independently verified because there is no free press in Cuba and
second, we have seen this type of announcement before… many times.
Rob Sequin
Havana Journal