Financials
Deal Terms
29%
Target IRR
5 years
Return of Capital
3.65x
Target MOIC
Promote Structure
The LP Preferred Return is 8% annualized on outstanding principal and a return of capital at 80% of proceeds available for distribution. Thereafter, all proceeds are split 40% GP and 60% LP. The Net LP returns above and cash-flow summaries below account for this structure.
Expected Performance
We based our conservative performance assumptions off our study of category comps and an HVS analysis, linked below.
View HVS Study for Shangri La here
Timeline
Months 1-6
Acquire site, finalize design, prepare land, install roads and trails
Months 6-12
Construct eco-cabins, renovate structures, install utilities
Months 3-12
Establish organic farm and regenerative agriculture
Months 13-16
Launch farm-to-table dining, music venues, cultural workshops
Months 13-16
Initiate community partnerships, soft launch
Month 18
Full public opening
Ongoing
Expand sustainability, accommodations, marketing, community engagement