JHSF Península, part of JHSF UK, which controls JHSF Participações , announced on Tuesday morning, April 14th, the acquisition of the Enjoy Punta del Este complex (formerly Conrad) for US$160 million. The company's proposal is to bring the Cidade Jardim complex's operational concept to the Uruguayan city.
JHSF Capital , the company's investment management arm, acted as financial advisor for the transaction. The idea is that, from now on, an investment vehicle will be structured under its management to attract other investors to the operation, who will become partners with JHSF's parent company in the Uruguayan venture. Approval of the deal is still pending approval from the country's regulatory bodies.
“Uruguay was our first international expansion, with Las Piedras [in 2010], and the country has been undergoing tremendous development over the years. Looking at this growth, we saw Enjoy as an important operation, in Uruguay's most iconic building,” says Augusto Martins, CEO of JHSF, in an interview with NeoFeed .
In addition to the hotel, which currently has around 300 rooms and will become part of the Fasano chain , JHSF will expand the existing shopping mall on the site, which will be called CJ Punta, increasing its gross leasable area (GLA) from the current 10,000 square meters (m²) to 20,000 m². It will be the largest shopping center in Punta del Este.
“We will implement our ecosystem, with an approach more similar to what we have in the Cidade Jardim complex. We will develop other activities there and transform the asset, making the place more in line with our brand,” says the executive. “We will combine hospitality, gastronomy, shopping, and more. A destination that consolidates the JHSF group's position as the main high-end player in Uruguay.”
There will be more than 50 businesses, including international brands that already operate exclusively in JHSF shopping malls and that are not yet in the city, as well as new gastronomic attractions. It will also be the first casino operated by the company.
Among the brands expected to set up shop in the Uruguayan mall are Acquazzura, Balmain, Chloé, Celine, Pucci, Brunello Cuccinelli, Isabel Marant, René Caovilla, Gianvito Rossi, and Fratelli Rossetti.
Uruguay currently maintains a solid investment grade rating, considered one of the safest countries for investment in Latin America. Last year, the S&P agency raised the country's rating to BBB+, which represents two points above the minimum investment grade level.
According to the CEO of JHSF, the expectation is that the project could begin operating under the JHSF brand by December. Even with the expansions and restructuring, the activities of both the shopping mall and the hotel will not be interrupted during this period.
The company will also build four residential towers in the surrounding area, under the branded residence model. The project is under development and the plan is to begin construction next year.
According to Martins, the model that will be implemented at Enjoy will complement that of Las Piedras and, in practice, the two JHSF operations in Uruguay do not compete with each other.
“There’s no competition because they are complementary developments. Las Piedras has a countryside feel, with a more horizontal layout. Enjoy is more in the city center, in front of Playa Mansa, more vertical, connected to amenities and the shopping mall,” he explains. “The target audience is the same, but with different offerings.”
