Crystal Lagoons® PAL™ Business Model Sparks Interest in Financial World15 May, 2020 / News
The new Public Access Lagoons™ business model, also known as PAL™, created by the multinational water innovation firm Crystal Lagoons® has become a new long-term investment alternative. With return on investment above 50%, the business model hassparked interest in institutional investors, investment funds, family offices, insurance companies and large real estate developers currently facing the complex challenge of finding long-term investment alternatives with attractive returns.
For this reason, large investors from the United States, Asia, the Middle East, Oceania and Latin America have taken interest in Crystal Lagoons new licensing model, which grants them exclusivity for a specific geographic region, and a specific volume of projects. These contracts are operationally replicable anywhere in the world, and have the additional value of having a high social impact, as they reactivate hubs and boost employment in several industries as PAL developments include a vast array of gastronomic alternatives including restaurants, esplanades for events, retail and amphitheaters for recreational and cultural activities.
In just six months, Crystal Lagoons has signed five master licensing contracts in Japan (30 lagoons), Korea (30 lagoons), the United States (16 lagoons), Mexico (30 lagoons) and Central America (18 lagoons), with a present value of US $3.8 billion. Company’s projections for the next 30 years is to license 4,610 PAL projects around the world.
The multinational is also in advanced negotiations in South Africa, Australia, the Middle East (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates), Israel, Italy, Spain, Portugal, Nigeria, Kenya, Ghana, Cambodia, Botswana, Pakistan, Brazil, Colombia, and Peru, with projects that total an additional US $3.7 billion once all PAL projects are operational. This new model is generating an exponential increase in sales for Crystal Lagoons, and is producing a significant structural change for the company.
“The attraction for investors lies in the considerably higher returns, compared to their frequent locations in real estate sectors or concessions. PAL represent low investment and risk, as the projects are built, they quickly generate utilities and produce a financing pyramid, which allows, with low initial investment, to create a company with a very high present value,” explains Cristián Lehuedé, Executive Director at Crystal Lagoons.
The profitability of this new model is two-tiered. Firstly, there is the immense number of ticketed entries to the white sand beaches and, secondly, it is reflected in the vast commercial usage it has to offer, with naming rights and leasing of areas overlooking the lagoon, ideal for events, fairs, concerts, weddings, shows, among other activities.
For this reason, investors have formed new companies to execute, operate and market PAL projects in specific regions, which represent an enormous business potential. The events industry, for example, generates US$ 2.5 trillion annually, the wedding industry, approximately US$ 300,000 million and concerts, US$ 31,000 million.
In comparison to the traditional closed, underground event centers, PAL offer scenic beauty. They quickly become the most stunning locations in the cities they are situated in, are rapidly recognized as blissful settings for events, launches, fairs, food halls, hosting weddings, concerts, day clubs, etc.
“PAL change the urban way of life of millions of people by inserting a part of the ocean within walking distance of their homes, much like what happened 200 years ago, when the first city parks were created in England, bringing natural forests to the cities. Today, every city in the world considers parks. The same phenomenon is occurring with Public Access Lagoons, which incorporate the beach into the design of cities, saving people from having to take a plane or a car to go to the beach, with the consequent drop in the carbon footprint as well as reducing human impact on the biodiversity of natural areas,” concludes Lehuedé.
Crystal Lagoons is an international innovation company, founded by scientist Fernando Fischmann, which has developed a patent-protected technology that allows the construction and maintenance of unlimited-size clear water lagoons at very low costs.