Spectacular project will raise Puerto Rico’s international profile

Bolstered by an increase in private and public sector-led building activity, the construction industry has outperformed other areas of the economy in recent years.

The construction industry has been one of the island’s star performers in recent years, outpacing other parts of the economy with an increase in private and public sector-led building activity. Since 1999, the total value of construction activity in Puerto Rico has exceeded the $6 billion level every year, reaching a peak of $6.9 billion in 2000.

One of the most spectacular developments will be the $200 million Paseo Caribe (Caribe project), led by local developer San Geronimo, which will establish a world class hotel, leisure and entertainment complex close to the Caribe Hilton near San Juan. The locally-financed scheme will include a high-class shopping mall with exclusive boutiques, the Condado Lagoon Villas condo-hotel – with 88 villas, representing approximately 264 rooms, to be managed by the Caribe Hilton – plus a 21-storey deluxe apartment block and related facilities such as movie theaters, restaurants and parking lots.

ARTURO MADERO President & Managing Director, San Geronimo Caribe Project, Inc

Arturo Madero (INTERVIEW), President and Managing Director of the San Geronimo project company, part of the Lema group of companies, says the development – due for completion in late 2004 – is the culmination of many years of hard work. “Without a doubt, the project that I have really put my heart and soul into is the Paseo Caribe development. This has been the most important project I have been involved with. It’s been a difficult one, but I feel very satisfied to be part of it.”

The design of the complex takes into account the premium strip of land it is located on in Condado, sited on the Caribe Hilton’s vast outdoor parking lot, near Fort Geronimo, and on a plot next to the hotel that once belonged to the U.S. Navy. The resort will incorporate a beautiful new plaza opening up to the sea, and provide better access to the fort, through the Paseo San Geronimo, a path leading from Ponce de León Avenue to the historical site.
The Caribe project is regarded as something of a flagship for both the local construction sector and the tourism industry. “Since this development is located at the entrance of San Juan, it has to be a prominent and attractive project. Anyone would love to develop a project in such a beautiful place.”

Moreover, the Paseo Caribe is creating important economic benefits for the local community. As well as a source of work for an estimated 3,5000 people, it will become a focal point both for local residents and tourists. It will also help to create awareness of the new convention center that is under construction.

Mr. Madero says that the scheme has already been well received with most of the 88 villas already sold to private buyers, mainly local residents. Under an innovative scheme, the owner allows Caribe Hilton to manage the villas for a period of 10 years, during which he or she can stay for up to 30 days a year or more, subject to availability. Many of the 46 luxury apartments in the high-rise condominium have also been sold.

The shopping mall will be managed by a specialist property management firm. There is plenty of fresh potential in Puerto Rico’s fast growing sunshine sector with the firm support of the local government. “We believe that Puerto Rico has a lot of opportunities. There is a commitment from the government to make our economy stronger. To develop a project like Paseo Caribe you need total commitment from both the government and the private sector.”
The Caribe Hilton, one of the island’s top hotels, already plays a major role in promoting Puerto Rico’s international
profile. The new development will boost the hotel’s room inventory from 645 to 910, making it the largest hotel on the island. The resort’s proximity to the new convention center will also make it the ideal hotel choice for group business travelers, although it already boasts some of the best conferencing facilities in Puerto Rico.

José Campo, General Manager of the Caribe Hilton, is excited about the new development. “It’s going to be an outstanding five-star property with marble bathrooms, top-notch materials and services, operating as another hotel within the hotel. It’s going to be something special, a destination in itself.”

He believes that the island still needs more rooms to cope with the surge in demand among international visitors, especially when the new convention center opens next year. Other hotels are also springing up around San Juan, as well as the other major centers like Ponce. In 1999, the Caribe Hilton invested $60 million in additional improvements.

There is a high level of anticipation about the opening of the new resort complex at the end of next year. “Paseo Caribe is going to become the new center of social activity in San Juan, offering casual and fine dining, shopping, movies, a casino and great entertainment. The first phase is progressing very quickly and will be completed by September 2004, and the second phase in 2005.”