RisksUpdated 2026-09-30
Risks & Mitigations
We state the risks plainly, with the mitigation against each.
| Risk | Mitigation |
|---|---|
| Restoration delivery (the seller's obligation) | The ~$270k restoration is inside the price and the seller's responsibility, with a 3–5-month deadline and milestones written into the share purchase agreement. The work is done by the team and local contractors who built the property. The buyer takes over a property in operating condition, not a repair project. |
| Climate (the proven risk) | The restoration is a climate-resilient rebuild of the water and electrical systems, not a like-for-like patch. The operating case carries a ~$100,000 contingency reserve, current civil and worker-safety insurance (most jungle climate damage is uninsurable — which is exactly why the reserve exists), and a modeled business-interruption case. |
| Reopening ramp | The launch year is loss-making by design. Demand is already proven (96+ guests, 15+ countries, premium rates, a 20-person and a 40-person retreat), so the reopening is commercial execution, not market discovery. The ramp to a 55% stabilized occupancy is deliberately below the national average; the downside stays profitable (~23%). |
| Key person & relationships | A remote property working with a local community depends on relationships. Structure B keeps the founder inside the team as a partner (30%), supporting development; structure A carries up to 6 months of transitional support to hand over the community, GOREL, contractor and team relationships. Both are written into the SPA. |
| Transaction & title | The deal is a share purchase of AWAKEN Resort S.A.C., a SUNARP-registered company holding the land and buildings; the shareholders' mandate to sell is in place; title, corporate records, tax position and licences are verified in diligence against the live SUNARP record. |
| Single asset & execution | Conservative ramp assumptions, a low fixed-cost base, and conservation-expansion optionality (adjacent parcels on request) that adds value independent of nightly occupancy. |
| Ceremonial offerings | Run by independent third-party practitioners who hold the licences and the liability, under agreements with waivers and medical screening; the company earns only a referral and does not operate them. |
Not material — in fact strengths
Three things commonly assumed to be Amazon-property risks are, here, the opposite:
- Land title is clean. The land is private property registered with SUNARP with a COFOPRI-formalized chain of title, outside the constitutional border-zone, held by the operating company. There is no land-tenure overhang.
- Tax is locked in. The Ley 27037 regime (5% income tax; the companies are not IGV payers) is in force through 2048 — a multi-decade fiscal advantage that transfers with the company, not a contingency.
- No FPIC requirement. The neighboring community is a riverside community, not an indigenous community, so a formal FPIC process is not required; the company has nonetheless held a cooperation agreement with the community since 2020, which transfers with the property.
Open due-diligence items (the Ley 27037 tax opinion, the restoration schedule, ceremony third-party agreements) are indexed in the Legal Appendix. Forward-looking figures are management estimates. Confidential.