Gulf Construction Magazine Announces Crystal Lagoons® Expansion Across MENA Region2 November, 2020 / News
The international magazine Gulf Construction has highlighted Crystal Lagoons® developments in Egypt, Saudi Arabia, UAE, Morocco, Turkey, Bahrain, Oman, Kuwait and Qatar. These are just some of the countries in the region in which the U.S. multinational innovation firm has developed 23 real-estate projects anchored by large-scale crystalline lagoons surrounded by beaches.
One of the most renowned private real-estate projects in MENA is “Mohammed Bin Rashid Al Maktoum City – District One”, in Dubai, a project with the most expensive square meter in UAE. Anchored by a 100-acre lagoon powered by Crystal Lagoons technology, it will break the firm’s world record as largest crystalline lagoon for the third time. In Egypt, the Citystars Sharm El Sheik complex also stands out, centered around a 30-acre lagoon, a true oasis in the middle of the Sinai desert. It currently holds the world record as the world’s largest.
Crystal Lagoons is now focusing on a revolutionary concept, Public Access Lagoons™, also known as PAL™. Accessed via ticketed-entry, the multinational is in advanced negotiations in the Middle East and North Africa (MENA) to develop 33 complexes in countries such as Saudi Arabia, UAE, Bahrain, Kuwait, Egypt, Morocco and Turkey.
PAL are monumental crystalline lagoons suitable for bathing and watersports, surrounded by beaches. By creating beach life steps away from home, they become the most beautiful location in the city.
They are ideal for hosting events, trade shows, food-halls, weddings, concerts, day-clubs and streaming events in an idyllic environment and multiple set-ups, such as beaches, wedding peninsulas, terraces, domes and gastronomic services, retail, beach clubs, amphitheaters for recreational and cultural activities, making them the meeting point of the 21st century.
Crystal Lagoons has offices in Dubai overseeing the MENA market, and is developing these projects recognized for requiring a low investment and low maintenance costs, offering short-term return and increasing foot-traffic, through a master licensing agreement, which involve a significant number of PAL for specific geographical territories.
“PAL captivate investors due to their commercial versatility, and can be developed with different investment formats. The firm offers models with more or less infrastructure but even those with minimal initial infrastructure are tremendously successful,” explains Alastair Sinclair, Crystal Lagoons Regional Director.
The basic format includes a crystalline lagoon, beaches and green areas with kiosks for basic services. The intermediate infrastructure format also includes a wedding peninsula and can host events, concerts, trade shows, etc. indoors, year-round, overlooking the lagoon, as well as offering additional areas for businesses to open up. The most complete investment model incorporates all of the above, as well as retail, restaurants and hotels.
Investors have identified these developments as a new long-term investment alternative, with rates of return unheard of in other industries, as well as low investment and limited risk. These projects are built quickly and rapidly generate profits, allowing for pyramidal financing. Despite a low initial investment, a company can achieve a high present value in a short lapse of time.
This is reflected in the success of the master agreement model, which in just one year, Crystal Lagoons totaled 810 PAL in different stages of development and negotiation in 60 countries. They represent 90% of the firm’s contracts, with master agreements in Korea, Japan, U.S., Pakistan and Central America.
But investment funds and real-estate developers aren’t the only ones to perceive PAL as a unique opportunity. “The hotel industry has identified an increase in value in rates and food and beverage consumption up 200% in hotels with a beach, compared to hotels inland. Investors have also corroborated that, on lower-value land, a hotel with a beach and PAL elements, can gain attractive returns,” adds Sinclair.
Covid-19 has not affected the PAL business model’s dynamism. On the contrary, they have emerged as a safe long-term alternative due to their robust projections despite ongoing health and commercial pressures, as Covid and Amazon-proof alternatives, something few economic sectors are able to offer.
Concepts such as PAL are necessary in cities post-confinement, as people prefer to unwind in areas close by and in controlled areas that guarantee sanitary measures. Being able to have beach life, without travelling, and leisure activities close to home reduces a number of risks.
Two prime examples of this are the first PAL in the U.S., known as Epperson and Lago Mar, which have seen undeniable success, both generating US $50,000 daily in ticket revenues, sponsorship, food and beverages, watersport equipment, while operating at 30% capacity to allow for social distancing and receiving 1,200 daily visitors. Tickets often sell out a week in advance, despite the pandemic.
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.