CLERHP Unveils Ambitious Business Plan Aiming for $784 Million Revenue by 2028

CLERHP's Vision for Growth: Business Plan 2026-2028

CLERHP, a leading Spanish group recognized for its expertise in engineering, architecture, construction, and real estate development, is stepping into a transformative chapter with its recently announced Business Plan for 2026-2028. The plan projects an impressive $784 million in revenue over the next three years, signifying not just financial growth but a strategic shift toward an integrated business model within the real estate market.

Financial Aspirations:

Approved by the Board of Directors on September 30, this ambitious plan outlines CLERHP's expectation to report EBITDA of $252 million along with a net income of $162 million. It is noteworthy that the organization plans to initiate dividend payments in 2027, with a commitment to allocate 25% of net profits to its shareholders—a move that aligns with its growth and expansion strategy.

The Core of Transformation: Larimar City Resort

The highlight of the new strategy is the Larimar City Resort project situated in the thriving area of Punta Cana, Dominican Republic. This venture aims to establish itself as a landmark destination city, integrating residential spaces, commercial areas, and amenities. The project has already achieved $400 million in sales, which represents about 50% of the projected revenue for the entire business plan period. This feat not only underscores the project's market potential but also reflects CLERHP's commitment to evolving into a vertically integrated real estate powerhouse.

In addition, CLERHP has secured $56 million in financing to support Larimar City's development, comprising both bonds ($22 million) and private debt ($33 million), alongside a robust cash position of $13 million. This solid financial foundation allows for greater flexibility and responsiveness in project execution.

Strategic Areas for Growth

The Business Plan delineates five principal business areas focusing on engineering, structural construction, project management, real estate development, and integrated services. The strategy revolves around enhancing technical capabilities and expanding service offerings, including integrated project management to external clients, thereby diversifying its revenue streams even further.

Moreover, the gradual introduction of operational services related to Larimar City, such as equipment maintenance, supplies, and rental management, reflects a strategic shift towards a diversified business model that transcends mere construction activities.

Aiming for Value Creation and Global Presence

With expectations of $252 million in EBITDA, primarily driven by real estate activities, the plan not only targets substantial profit margins but sets a foundation for ongoing international expansion. Following its progress in the Panamanian market with Latinex, the future aims include securing access to BME's primary market, paving the way for enhanced visibility and investment opportunities.

Entering a decisive phase five years after venturing into the Dominican Republic, CLERHP's new Business Plan marks a crucial step in consolidating its transformation, elevating capabilities, and nurturing new revenue streams. As it strides forward, its stakeholders will be keenly observing how the company navigates this ambitious journey, revealing the potential growth paths ahead.

For more details, visit CLERHP or Larimar City.