Tortuga Beach Resort & Spa, one of Cape Verde's leading residential developments, Sal Island
News
2009 starts with an amazing bang!
The SOLD OUT signs have been put up at Tortuga Beach Resort & Spa meaning that all 358 Apartments and Villas have now been purchased by discerning buyers. It is great news all the way, terms have been agreed with the largest resort hotel group on the planet, the construction contract with Grupo San Jose is now underway and 2009 becomes the year of build build and more build!
Thanks to all our Agents for your continued support and thanks very much to all Purchasers... you can now really start looking forward to your very own piece of paradise.
Chairman's Message - End of Year 2008
Reassurance In An Uncertain World!
As 2008 draws to a close I want this final message of the year to convey one
point and one point only ... Reassurance.
I have been conscious that a number of our existing
Purchasers, our Agents and indeed our future Purchasers naturally want
reassurance that everything is on track. In today's uncertain world it is
completely understandable that everyone will look at all aspects of their
finances.
Let me start by making a statement ...
"The Resort Group's two current developments of Tortuga
Beach Resort & Spa and Dunas Beach Resort on Sal Island, Cape Verde are rock
solid in terms of safety and investment returns for purchasers. They will be two
of the best value for money resorts to be built anywhere in the world over the
next few years."
Now you might think that this is a rather bold
statement to make but let me reassure you that it is not bold at all. There are
a number of key ingredients that go together to ensure that Tortuga and Dunas
deliver everything required to Purchasers. I would like to band these
ingredients into three separate segments, some of them are inter-linked but in
the main our experience shows that the benefits of owning property abroad are a
mixture of
Capital
Growth, Ongoing
Income and
Lifestyle.
Let me take each of these in turn ...
1) CAPITAL GROWTH
Market
...
Capital value grows if the right market conditions exist!
Cape Verde has growing land values and is still at the
beginning of it's growth cycle as an emerging market. It has all the magic
ingredients of the right pricing, great year-round weather, direct flights, a
growing economy, politically stable and rapidly rising tourism where demand far
exceeds supply.
Beach-front
...
Capital value grows if on the beach!
There is only so much developable beach-front land in
the world that is easily accessible. Over time as prime beach-front becomes more
scarce then so the value of existing plots increases.
Due Diligence
...
Capital value grows as each one ticked off!
* Land - We have full title to land for Tortuga and
Dunas and both plots have been completely paid for. Indeed, when paying the
final installment for Dunas to the CV government, we actually paid earlier than
our contract stipulated so that we could obtain land registration for the
comfort of our Purchasers.
* Licenses - An architect's drawing may look great on
paper but if it doesn't satisfy the planning authorities then it is worthless.
Tortuga and Dunas have planning permission approved, environmental impact study
sign off and building licenses granted and issued.
Sales
...
Capital value grows as the properties within the resorts sell!
This has been one of the key strengths of The Resort
Group over the past year. Yes, there has been economic uncertainty but we have
not sat back and waited for things to turn. Whilst many other developers have
seen a drop off in sales, Tortuga and Dunas have continued to sell strongly and
consistently throughout the year.
In some ways, I think the economic slow down has
actually helped us as there are still many people looking to buy overseas
properties but they are now being more careful and more choosy. Resorts now have
to be able to demonstrate all the due diligence, be in the right location and be
of exceptional quality and value for money. Purchasers are not in the mood to
compromise anymore and Tortuga / Dunas have certainly passed the tightest
scrutiny.
Sales for 2008 have actually been
stronger
than 2007 (which itself was one of our best ever years). I am delighted to
announce that Tortuga Beach Resort & Spa is now virtually sold out and we expect
the final remaining properties to be sold over the next few weeks. A fantastic
achievement and we can all now look forward to a successful and profitable
future as the Purchasers properties and our retained commercial facilities
(hotel, restaurants, bars spa etc) work hand in hand together for the prosperity
and mutual benefit of all.
Dunas Beach Resort now becomes our primary focus for
sales in 2009 and we are currently 53% sold (371 properties). We expect to
announce being 'Sold Out' during late summer.
Construction
...
Capital value grows as the resort grows!
It is fair to say that we had hoped to have commenced
construction before now but I am happy that the time spent on the finer details
of the contract has been time well spent. Tortuga and Dunas will cost around
€110 million (Euros) to build and fully finish to the high standards that we
and our 5-Star hotel operator demand. We have had to make sure that the
thousands of different elements within the contract all represent the very best
value for money and quality standards for ourselves and our Purchasers.
I am delighted therefore to confirm that on 17 December
2008 a construction contract has been signed with the huge Grupo San Jose.
We considered a number of different construction
companies, all of whom have the capacity and track record to deliver the
projects but in the end Grupo San Jose demonstrated the best strength,
credibility, experience and overall package. For your information, the following
bullet points should give you the reassurance that the construction is in
exceptionally good hands ...
* Over 30 years experience (started business in 1975)
* Net turnover in 2007 of €1.56 BILLION (Euros)
* Earnings before taxes in 2007 of €157 MILLION (Euros)
* One of the largest construction companies in Spain
* A truly international player with operations in every
region of Spain plus Portugal, USA, France, Germany, Morocco, Argentina, Mexico,
Peru, Panama and of course Cape Verde
* Vast experience in all aspects of construction
including ... Residential / Hotels and Resorts / Shopping Malls / Airports /
Hospitals / Offices / Sports and Leisure Centres / Highways and Motorways / Rail
Projects / Universities / Restorations / Museums / Water Treatment Facilities /
Energy Projects / Urban Planning / Bio-fuels / Maintenance Services
* Previous projects are too numerous to mention but a
few examples to demonstrate the wide range and scale include ... An extension to
the famous Prado Museum in Madrid (officially opened by the King and Queen of
Spain) / Palace of the City Hall, Gran Canary / Head Office of Barclays Bank,
Zaragoza / Airport of Minorca / Head Office of the Council of Malaga /
University Hospital, Oviedo / Carrefour Shopping Centres in Madrid, Malaga and
La Coruna / The Sports City, Sevilla / Hotel Cathedral, Barcelona / Wind Farms
of Lugo / New Station in the Madrid Subway / New Motorway Intersection on the
M-40 Madrid / New High-Speed Railroad joining Madrid with Valencia / Residencies
Guadalmarina, Sotogrande / Pena Longa Hotel and Spa, Lisbon / Emprendimento del
Burgau Residential, The Algarve / Colon Theatre, Buenos Aires / West Avenue,
Miami Beach / Miraflores Educational Centre, Cape Verde
* Grupo San Jose are also Joint Venture partners with
local Cape Verde construction company Sogei. Established in June 2003 Sogei is
responsible for the Complexo Atlantico in Praia, a multi-purpose project of
residential, business and leisure facilities and the Santana touristic project
near Santa Maria on the Island of Sal
* Social responsibility ... San Jose has developed a
policy oriented to the protection of the environment
Machinery and equipment will now be rolling on to
Tortuga and the heavy ground work getting underway. We anticipate that, during
the first quarter 2009, machinery will move on to Dunas for a 'soft start' and
then it will be build, build and more build all the way! I have to say that this
is a proud time for myself and everyone concerned with the projects. We believe
that the total construction budget will represent the highest spend per sq m in
the history of Cape Verde for touristic resorts. To put this into perspective,
we are spending nearly double per square metre on the build than of the
5-Star RIU hotel just down the beach.
To finish this update on construction and, in the
spirit of openness and transparency, I would just like to touch on finances.
Some developers around the world are naturally feeling the pinch with regard to
cash flow, let me make two things absolutely clear ... we will NEVER spread
ourselves too thinly and we will NEVER run out of cash!
The Resort Group has no debts, we fully own both plots
of land and they are unencumbered. Our pre-sales over both resorts represents
some 70% of the properties available and, as our Purchasers will be aware, we
have been prudent by asking for healthy deposits. These have ranged from 35% to
60% of the purchase price (and in some instances the whole amount payable in
installments during the build period). Whilst some other developers have only
asked for eye catching low deposits (even as low as 10% to 20% with nothing else
to pay until completion!), this strategy is proving to be flawed. Yes, it would
make for easier sales but at what cost? Quality resorts require significant
funds to build and some of these 'low deposit' projects had then hoped to raise
further funds from additional lending or bonds or bridging loans. As everyone is
aware, the reality has been that any form of lending at the moment is anything
but a foregone conclusion!
This collection of circumstances has left some
developments struggling but NOT Tortuga or Dunas. As I have already said, we are
in a very strong financial position, our pre-sales plus financial resources and
agreed additional construction finance from Banif (one of Portugal's largest
banks) already means that even 'without any further sales' we will still be in a
position to complete both resorts. Obviously this is a very secure position to
be in and for that I would like to thank the 700+ Purchasers that have already
seen the off-plan benefits of Tortuga and Dunas and who have paid fair and
viable deposits.
By the way, the additional construction finance from
Banif (€15 million of which €6 million will be syndicated) was approved at the
height of the credit crunch and this was only signed off following extensive due
diligence by Banif on our company and all the pre-sales.
5-Star Hotel
...
Capital value grows as credibility grows
The benefits of a world renowned hotel operator are heavily linked
to the rental returns, more of which later, but the capital growth value of the
Apartments and Villas within the Resorts is also helped tremendously. The long
term value of properties increase with an income track record that is proven to
be strong and sustainable.
We have agreed Heads of Terms with a major operator and
the contract is being finalised with lawyers but, interestingly, I would just
like to quote a small paragraph that was included in their original Letter of
Interest ...
"It is generally accepted in the industry that the
association with a recognised hotel flag adds at least 25% to the final selling
price, when compared with unbranded second home projects."
2) RENTAL INCOME
I hope that you share my confidence and enthusiasm that
Tortuga Beach Resort & Spa and Dunas Beach Resort will both bring very
attractive capital growth but, for those that require it, what about an ongoing
income from your property?
Again, there are a few key ingredients that need to be
in place ...
Location
...
Ongoing income is achieved and sustained if people want to visit!
* Sal Island has direct flights from many countries.
* The list is growing all the time (for example, in
addition to Gatwick and Manchester, flights have also just commenced from
Birmingham)
* Sal's runway is the 8th largest in the world!
* Tortuga and Dunas are just a 15 minute drive from the
airport
* Sal has year-round sun ... no low season
* Beach-front ... this is top or very high on most
holiday-makers wish list, beach-front is the most desirable, the most limited,
the most in demand, the most saleable and the most rentable!
Resort Facilities ...
Ongoing
income is achieved and sustained if people enjoy their stay!
* Tortuga and Dunas enjoy all the facilities and
amenities of 5-Star Resorts (to European standards).
* Reception, Concierge, Restaurants, Bars, Spa, Gym,
Entertainment, Sports, Beach Club, Activities etc. etc.
* They are 'tour operator friendly'.
* €millions of extra spend has been added to the
construction budget to take the Resorts to
true 5-Star quality.
There are many examples I could quote but one that may go unnoticed but
emphasises how the Resorts will work seamlessly for the benefit of all is that
state of the art fibre optic cabling will run throughout the Resorts to provide
the latest in high-tech communications, including on-demand movies, satellite
TV, wi-fi and a sophisticated door entry system. All four corners of the Resorts
will communicate with Reception and the back of hotel offices for both
efficiency and convenience for all.
Supply and Demand ...
Ongoing
income is achieved and sustained if good occupancy!
* Demand exceeds supply in Cape Verde in general and on
the Island of Sal in particular.
* Currently the best hotel on Sal enjoys over 90%
occupancy and the average on-island occupancy for hotels is around 80%
* Tourism is rising, the last 5 years has seen the
number of hotel bed nights more than double!
5-Star Hotel
...
Ongoing income is achieved and sustained if renters are attracted!
* Many resorts 'promise' rental returns but all too
often do not have a viable or sustainable vehicle for actually
delivering
property rentals.
* As previously stated, we have agreed Heads of Terms
with a major hotel brand and a formal announcement will be made when the full
Operator Agreement has been signed.
* What I can tell you is that they have an amazing
track record in quality and occupancy. They have over 50 years experience, are
the 3rd largest hotel chain in Europe, the 12th in the world and, importantly,
they are actually the largest 'resort hotel' group
on the
planet!
* They operate hotels in 30 countries across 4
continents and they receive a staggering
120,000 hits
per day on their various worldwide reservation systems.
* The hotel will do all the work to attract guests and
then look after them in 5-Star luxury whilst the owners of the Apartments and
Villas simply sit back and receive their share of the income year in year out!
* Based on Savills projections of only 68% occupancy
this will mean that owners would enjoy a rental yield of approximately 10% per
annum.
3) LIFESTYLE
Ok, if capital growth and ongoing rental income can be
ticked off then what about owners actually enjoying the properties themselves. I
don't need to say too much here because the lifestyle benefits are fairly
obvious ...
* The additional spend into the Resorts to achieve the
required 5-Star level will also add to the value of your property and the
quality of your stay. For example, you can expect luxury bathroom suites, high
quality Italian kitchens by a leading supplier based in Venice and equipped with
soft closing drawers and
SMEG
appliances, and even the wardrobe doors in all the properties receive a 6 stage
lacquering process to ensure a luxury high gloss finish.
* Also, don't forget ... sea, sand, infrastructure,
relaxation, amenities & facilities, easy to get to, very friendly locals,
English widely spoken, entertainment, water sports ... truly your own piece of
paradise!
SUMMARY
I appreciate that this has been a fairly lengthy
Chairman's Message but so much has been achieved over the last 12 months that it
is important to review and share the good news.
"Reassurance"
yes, but it's better than just reassurance, it is
great
for existing buyers,
great
for our Agents,
great
for future buyers and quite simply great news all the way
...
* Full and unencumbered title to land.
* Planning Permission approved.
* Environmental impact study passed.
* Building License granted and issued.
* Savills 'Red Book' valuations showing total land
values (pre-sales) of over €65 million and a Gross Development Value of over
€225 million.
* Tortuga Beach Resort & Spa virtually sold out.
* Dunas Beach Resort 53% sold.
* 5-Star hotel operator terms agreed ... largest resort
hotel group on the planet ... 120,000 hits per day.
* Expect double digit rental yield ... consistent and
sustainable.
* Capital appreciation from rising tourism in an
emerging market with all the magic ingredients in place.
* Market leading Easy Ownership ways to buy.
* Location ... amongst the very best beach-front in the
world.
* Resorts delivered in true 5-Star quality.
* Outclassing the competition re quality.
* Outperforming the competition re price.
* Construction costs cash flowed through the financial
strength of The Resort Group, pre-sales and bank finance.
* Banif bank signed off construction finance at the
height of the credit crunch ... we are in such a strong position that, in
golfing terms, it was a 'gimmie'.
* Construction starting on Tortuga ... Dunas fenced off
and ready to go in the new year.
We are in Cape Verde for the long term, there is no
better place in the world for investors looking for exceptional value for money,
capital growth, ongoing income and lifestyle. Thank you very much to everyone
involved during 2008 for what has been another tremendously successful year. In
that I include our Purchasers, Agents, business associates, Everton FC (of whom
we are an official partner) and not forgetting all staff of The Resort Group PLC
who as ever have worked tirelessly.
I will end with the statement that I started with and,
taking all the above into account, I hope you agree with me that it is not
'bold' but simply a true reflection of where we are ...
"The Resort Group's two current developments of Tortuga
Beach Resort & Spa and Dunas Beach Resort on Sal Island, Cape Verde are rock
solid in terms of safety and investment returns for purchasers. They will be two
of the best value for money resorts to be built anywhere in the world over the
next few years."
Kind regards
Rob Jarrett - Chairman
On Friday 4th July a brand new Channel 4 series of the popular property show, A Place in the Sun - Home or Away, showed how it was make your mind up time for singer and presenter Cheryl Baker and husband Steve Stroud, as they decided where to invest their £160,000 inheritance.
Property experts Jonnie Irwin and Jasmine Harman helped them choose between a buy-to-let in up-and-coming Folkestone, or a holiday home on the tropical island of Sal in Cape Verde.
They chose to buy on Sal Island, being heralded as the nearest winter sunshine destination to the UK, and the ‘new Caribbean’.
The shows website comments on the property market;
Governed by Portugal until gaining independence in 1975, it’s easy to see why the Portuguese were reluctant to release Cape Verde from their control. Beautiful white sand beaches ring most of the islands, while palm trees sway in the breeze that cools the year-round tropical temperature of 23C (75F).
If the Portuguese brought European ways to the Islands' administration, its colourful culture owes everything to West Africa. Today, while the hotel complexes on Sal and its capital Santa Maria are very much international in appeal, elsewhere the language, cuisine, architecture and nightlife are exotically out of Africa.
The Island’s government has only begun to appreciate the rich cultural melting pot in the last five years. Tourism and housing construction are largely new to the islands, and in particular its main two: Praia and Sal; the latter being the destination to which charter airline Astreus has recently begun the first direct flight to the islands from the UK airports of Gatwick and Manchester.
The onset of direct flights is expected to have a large impact on the property market.
Source: Channel 4, A Place in the Sun: Home or Away website
The signing of the public deed of purchase and sale for Dunas Beach Resort which resulted in the developer buying land directly from the government and becoming the legal owner.
On signing of the deed a ‘first’ was achieved… as the only developer to have bought from the state of Cape Verde and fully paid for the land earlier than the payment schedule within the purchase contract.
Fantastic news! The Deed to transfer ownership was signed for Tortuga Beach Resort & Spa at the Notary on Monday 28 April.
The developers are now the legal owners of both plots of land.
The developers also have two "firsts" when they took title to Dunas Beach Resort land earlier this year: -
1) First developer to pay for land from the state of Cape Verde earlier than the contract payment schedule.
2) First developer to have completely paid the full purchase price (including all stage payments) for touristic land from the state of Cape Verde.
On both Resorts the developers now own the land, have planning permission, construction license, very strong sales and construction will commence in the next few months.
The power of Option 3 special offer payment plan from the developer expired at midnight 30th April 2008.
Watch this space for the next exciting payment plan.
Tortuga Virtual Tour - see it for yourself
We've just released the first full virtual Tour of our 5 star luxury Tortuga resort. Watch the movie to get a real insight into how beautiful and spacious our resort truly is. You will also see how beautifully appointed the apartments are too.
We are pleased to announce that we have appointed Rhooms to source stylish, contemporary and traditional furniture for properties on the resorts, Tortuga and Dunas.
We are working exclusively with them as specialist suppliers to the Cape Verdean market and have brought together a free furniture pack collection consisting of the following;
1 x 3 seater sofa
1 x sofa chair
1 x coffee table
2 x table lamps
1 x dining table
6 x dining chairs
1 x entertainment unit
1 x deluxe mirror
bedroom/master
1 x queens size bed/mattress
2 x bedside cabinets
1 x wall print
each additional bedroom
1 x queens size bed/mattress or 2 x singles
1 x bed side cabinet
The full payment options details for all reservations are as the options below:
• Option 1 :-
- Reservation fee: apartments - €6,000 (£4,000), villas - €12,000 (£8,000)
- 1st deposit: 30% within 15 days from receipt of contract
- 2nd deposit: 20% within 6 months of payment of 1st deposit
* Clients will receive free legal services and air conditioning
• Option 2 :-
- Reservation fee: apartments - €6,000 (£4,000), villas - €12,000 (£8,000)
- 1st deposit: 20% within 15 days from receipt of contract
- 2nd deposit: 20% within 6 months of 1st deposit due
- 3rd deposit: 20% within 12 months of 1st deposit due
* Clients will receive free legal services, air conditioning and a quality furniture pack
(Reservation fee is non-refundable)
Between May 26 and June 2, the first-ever “Cape Verde Week” in France will be held in Paris. With the sponsorship of Cesária Évora, the event is an initiative of the Cape Verde Business Club, which was created in France following a visit by Prime Minister José Maria Neves in November 2005.
In partnership with the Cape Verdean Embassy, TACV Cabo Verde Airlines and Cape Verdean associations in France, the Cape Verde Business Club will organize a week-long event in Paris dedicated entirely to the country.
The event will begin on May 26 with a gala dinner for 300 individuals in the UNESCO palace restaurant, followed, on May 27, by a handicraft, painting, photography and sculpture exhibition on Saint Germain Square.
The Saint Martin space, located near the George Pompidou Center, will host two conferences on Cape Verde between May 28 and 30 - one on tourism and another on investments - as well as a workshop on literature and poetry and an afternoon of Cape Verdean theater and cinema.
Source A semana
