Golf Inc - March/April 2009 - (Page 14) Regional Update Cuba target for golf development Region attractive for developers, but finance delays slow Caribbean projects olitical changes during the past year have led to new optimism about possible golf development in Cuba. But the spreading recession has slowed construction overall in the Caribbean recently, and that could affect plans in Cuba as well. One of the most persistent outsiders seeking to develop in Cuba is Walter Berukoff of British Columbia, who has spent more than a dozen years there on building proposals, some including golf. But he said he’s getting closer to his goal. “It’s difficult to use the Western business model in Cuba,” Berukoff said. “But in the last six months, I got them to talk about changing laws so that foreigners can acquire title to property.” He said sales of real estate in his developments would not be fee simple, but more likely long-term leases or right-to-use. Berukoff ’s company, Leisure Canada, based in North Vancouver, has three projects in the works, including a resort hotel at Cayo Largo off the coast of Cuba, and Monte Barreto, a business, retail and hotel complex in Havana. And along the beaches at Jibacoa, 65 kilometers east of The Jack Nicklaus-designed Punta Espada Golf Course in Cap Cana, Dominican Republic, is one of the Caribbean’s newest resort courses P Havana, he has proposed building several hotels, 45 holes of golf, a polo field and a marina where cruise ships could also dock. There also would be casitas and timeshares. “It’s a slow time for financing, but we have been fortunate to get investment from Dubai to join us in Cuba,” he said. Profile Investment LLC of Dubai announced in late 2007 that it had bought a major stake in Leisure Canada for $15 million and will also invest another $5 million in Berukoff ’s plans. “I have spent $25 million to $30 million on infrastructure for all three projects combined,” Berukoff said. “We’re moving ahead. We feel the market is ready now. If we begin building now, we’ll be ready when business picks up.” As a Canadian, Berukoff had no legal restrictions on doing business with Cuba. He started investing there 19 years ago when he operated a copper and gold mine. Now he’s excited about recent changes in Cuba since Fidel Castro’s brother, Raoul, assumed power. Election of a Democratic president and Congress in the United States could also loosen the longstanding embargo on Cuba and make it easier for Americans to visit there. “Cuba had 2.2 million visitors last year — 700,000 of them from Canada; 300,000 from the U.S.,” Berukoff said. He and others believe that if U.S. relations are reestablished with Cuba, that island might quickly eclipse other Caribbean resorts as a magnet for Americans, since it is less than 100 miles from Florida. In his planning, Berukoff looked at hundreds of properties in Cuba. One challenge was ensuring that he chose sites with no existing title claims filed by former Cubans, now in Spain or the United States. “Probably a dozen other companies are trying to develop in Cuba,” he said. “It’s very bureaucratic. You have to go through committee after committee.” Other new resort plans for Cuba may be in the works. The Vietnamese government, for one, announced in fall 2008 that it will pair up with the Palmares Group of Cuba to build two courses and a tourist apartment complex. However, other projects apparently have been dropped. There are also reports that Nick Faldo is 14 Golf Inc. March/April 2009 PHOTO © PUNTA ESPADA GOLF COURSE/NICKLAUS DESIGN GROUP/JIM MANDEVILLE
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