Over 40% annual return expected on land investment opportunity in St. Lucia
"As the property market evolves under the current economic pressures, investors need to explore new ways to build a successful property portfolio. Some of the strongest and most profitable investments available today are land deals whereby private investors help finance the early stages of a new development," explains Tom Luttrell, CEO of international property developers - the Global Development Group.
"Investing at this stage means the investor’s starting capital is tied up for less time than other pre-planning deals and the financial returns are considerably higher. At the Global Development Group, we are currently offering a range of international land investment deals. Our exclusive opportunities cover some of the best locations in the world. They also prove very profitable, as the strong investment packages available are proven to generate some of the most competitive returns in the market."
The Terraces Spa & Resort in St. Lucia is one of the land investment opportunities currently being offered by the Global Development Group. The Terraces is a 21 acre resort overlooking the magnificent east coast of St. Lucia with the Jack Nicklaus golf course to the north.
"This is an incredible land investment deal. Investing at this early stage offers the highest return - 4% simple interest per month, which equates to a 48% annual return. Investments will be repaid no later than 31st December 2009," says Mr. Luttrell.
"The land was secured on an option contract, with the ability to purchase the land at any time for USD $4.75m (£2.45m). By the time this option was exercised and the land purchased in September 2008, outline planning permission for the site had been granted. This has more than trebled the land value to over USD $15.5m (£8.38m), as accredited by independent specialist valuers. Full planning permission is currently being sought and is anticipated in the first quarter of 2009."
A further valuation carried out by the independent valuer on 31st July 2008 valued the site with full planning at USD $30.74m (£16.61m).
The Terraces Spa Resort has a projected gross development value of USD $136.9m (£74.33m) with an indicated gross profit of USD $30.35m (£16.4m).
"This type of deal is so competitive because land investments of this nature don’t rely on traditional property investment models whereby returns are typically generated by either renovating a property, purchasing off-plan or by rental returns. Instead, these deals generate returns based on the price of the land itself which increases rapidly as the proposed project goes through each stage, from conception and through the planning stages," explains Mr. Luttrell.
"Each investor becomes a shareholder in an investor’s limited liability company. Using these investor companies as a vehicle to invest is a tax-efficient method."
St. Lucia was selected as the perfect setting for The Terraces Spa Resort. Well-known as one of the most beautiful islands in the Caribbean, St. Lucia is just 27 miles long and 14 miles wide, its two mountains rise 2000 feet from the sea, sheltering tropical rainforests rich in wildlife. It has a stable political system comparable to the UK, with the Queen as the head of state.
Well-informed investors are convinced that St. Lucia’s future as a tourist magnet is secure since several major resort and hotel projects are currently being planned with the encouragement of the government.
"We’re equally excited about the future of the island which is why we’re pleased to be able to offer investors the chance to contribute to the funding of The Terraces Spa & Resort and share our developer profits," says Mr. Luttrell.
"Once full planning permission has been granted, Global can raise funds from financial institutions. In view of the high returns offered by this investment, and the fact that we will not allow the investment to exceed 50% of the current land value, anyone looking to invest needs to act quickly."
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Information provided by Focus International Property | © PropertyIndex.com 2008 | Last Updated: 25 September 2008
