SANTO DOMINGO. – Popular Investment Fund Administrator (AFI Popular), a subsidiary of Grupo Popular, announced that its Popular Closed Fund for the Development of Companies, with the support of the fund managed by AFP Popular, acquired 25% of the shares of the companies that own the Paradisus Palma Real Golf & Spa and ZEL by Meliá hotels in the Dominican Republic, through the subscription of ordinary shares in these subsidiaries controlled by the hotel firm Meliá Hotels International.
In this way, the Closed Fund for the Development of Popular Societies of AFI Popular enters the capital of these subsidiary companies of Meliá Hotels International, through the funds contributed by professional investors, mainly from the pension fund managed by AFP Popular, also a subsidiary of the Popular Group.
In addition to this investment in the tourism sector, the Closed Fund for the Development of Popular Societies maintains a presence in other dynamic sectors of the national economy such as energy, construction materials, automotive or logistics.
With the acquisition of 25% of these shares, the investors in the AFI Popular investment fund will now share in the profits generated by the 596-room Paradisus Palma Real Golf & Spa hotel and the 190-room ZEL Punta Cana hotel, a new brand co-owned by Grupo Meliá and tennis player Rafael Nadal. Both properties target the premium and luxury segments.
José Manuel Cuervo, Gabriel Escarrer Jaume and Eduardo J. Grullón. (EXTERNAL SOURCE).
The Popular Societies Closed Fund has been operating since 2019 and is regulated by the Superintendency of the Securities Market. It currently has approximately US$550 million in assets and maintains investments in both equity and debt instruments in the Dominican Republic.
For its part, since 2016, AFP Popular initiated an investment strategy focused on increasing the exposure of the managed pension fund in real sectors of the economy, with the objective of diversifying the investment portfolio and generating better returns for its members, entering the tourism sector with approximately US$305 million, both in hotels in operation and under development as well as in real estate assets.
The operation was positively assessed by the president and CEO of Meliá Hotels International, Mr. Gabriel Escarrer Jaume; Mr. Eduardo J. Grullón, president of AFP Popular; and José Manuel Cuervo, vice president of the Subsidiaries Area of the Stock Market of the Popular Group.
Executives from Grupo Popular's subsidiaries expressed their satisfaction with this participation in the tourism sector through the Popular Companies Closed Fund.
"By acquiring a significant equity stake in two prominent hotels of the prestigious international hotel chain Meliá, we will promote a strategic investment that marks an important milestone for both Grupo Popular and its subsidiaries and for the tourism industry, reinforcing our firm commitment and our confidence in the sustainable growth potential of the tourism sector, vital to the Dominican economy and the socio-economic development of the country," they said.
The president and CEO of Meliá Hotels International, Gabriel Escarrer Jaume, expressed his gratitude for the confidence shown by the subsidiaries of Grupo Popular, based on the strong and enduring ties his company maintains with the banking group. He affirmed that they could not have found better partners to continue growing in the country. He added that "the launch in Punta Cana of its young ZEL brand, the result of combining the inspiring leadership of Rafa Nadal with Meliá's international experience in creating luxury hotels, diversifies and completes Meliá's portfolio in this extraordinary destination, allowing them to face the future with renewed leadership.".
Executives from both Grupo Popular's subsidiaries and Meliá Hotels International emphasized that AFI Popular's investment in these two hotels undoubtedly symbolizes a strategic alliance between the investment sector and the tourism industry. The selected hotels, located in the Punta Cana area, are known for their excellent service, prime location, and commitment to sustainable practices, perfectly aligning with Grupo Popular's principles and values.
They said that this start is a vote of confidence in the strength and professionalism of the tourism sector and that, beyond economic benefits, it will also seek a positive impact on the environment and local communities, since the sustainable practices implemented in these hotels raise the quality of the national tourist destination, for the benefit of the employees of these accommodations and their families.
