Long Bay Development in Anguilla. A story posted on an international property blog caught my attention.
“Exhibiting with Global Development Group, International Golf & Resort Management (IGRM) will unveil the
Michael Longshaw is well qualified to lead the project having spent two years living in Anguilla managing the Cocoloba Hotel on
I decided to look further into this new project. The Movie Channel webpage carries an advertisement for it:
· - Exceptional Land Investment – 48% per annum
· - Caribbean Haven in Anguilla,
· - This 31.5 acre, 6-star resort will be created on the beautiful Caribbean Island of Anguilla
· - Investment available from just £20,000 (€25,000; $35,000)
· - Planning was awarded on the 19th June 2008, with full planning expected in January 2009
· - The land has just been valued independently at US$45 million and once full planning is granted a valuation in excess of US$75
· - The developer is looking to secure US$7.5 million
· - Repayment target date 30th April 2009
· - Return on Investment 4% per month (equivalent to 48% p.a.)
The Movie Channel story is illustrated with a photograph of a generic little Caribbean island that is certainly not
Further details are given at The Investor Portal dot com page:
“The Investment
The Investors will hold Shares through a specialist Investor Company in proportion to the value of their investment.
The Investor Company will acquire ownership of building Plots whose value, once full planning permission has been obtained, is at least twice the value of the amount invested – as determined by an independent valuer of international repute.
Option
We will have the Option to buy the Plots from the Investor Company at any time up to 31st December 2009, for the amount of the Funds provided, plus a premium of 4% per month or part month, calculated on a daily basis from the time when the Investor Company provides the Funds. This is equivalent to an annual return of 48%. It is intended that the Option will be exercised by 30 April 2009, since by this time institutional funds should be in place.
If the developer fails to exercise the Option by 31st December 2009, they will arrange the sale of the Plots on the open market, and remit the proceeds to the Investor Company.
This is a strictly limited offer and investors will be dealt with on a “first come first served” basis.
Summary:-
§ Return of 48% p.a.
§ Minimum investment of £20,000
§ 8 months estimated duration of investment
§ Your investment will be secured against land valued in excess of twice the investment made”
I read up on the Carlton Hospitality Group. The information on this project on their website is less overstated than the more recent stories above. The claim then was that:
“Carlton Hospitality Group (CHG), a division of real estate investment bank Carlton Advisory Services, is fast becoming one of the leading financiers of
In 2006, CHG has closed the following
* $205 million acquisition and development financing of Long Bay Resorts, Anguilla--The financing will be used for development of a five star luxury resort located on 21.5 acres of pristine beachfront in Anguilla.”
At the Interchange fx webpage we read that:
"· Global Development Group, through an Anguillan local company, Global Investment Anguilla Limited (GIA, company no. 1016654), are the resort developers with key personnel who have a proven track record in successfully creating this type of resort.
· The development is a joint venture with a local Anguillan family who own the land which has already been transferred into the development company, GIA."
Their story is illustrated with a banner montage, allegedly depicting “
I need hardly tell you that the picture does not depict
It is interesting that this is to be an “exclusive club residence”. I thought that government’s policy was opposed to the construction of exclusive club residences. The objection, we have been told, is that such residences remain empty most of the year, and offer few employment opportunities for Anguillians. Beaches, we have been repeatedly told, are reserved for hotels.
Anyway, given the excess of planning permissions, building permits, and aliens landholding licenses given to developers to construct or enlarge projects on Shoal Bay East, Shoal Bay West, Conch Pool Bay, Savannah Bay, and Meads Bay, over the past seven or eight years, I thought there was a moratorium in place. When the proposed approximately-4,000 new rooms are constructed,
Carlton Hospitality Group is a very reputable company.
Does any legitimate investment today offer a return of 48% per annum, even on a short term?
If “the development is a joint venture with a local Anguillian family who own the land which has already been transferred into the development company”, can someone tell me this: How can the family still own the land if it has been transferred to GIA?
Did the investors put up the equivalent of the value of the land into the development company in order to make this a true joint venture? If they did not, and if the local Anguillian family have transferred their land to GIA in a joint venture but without any quid pro quo, does this mean that they are the only ones at risk if something goes wrong with this venture?
Why and how did the description of the resort change from “5-star” to “6-star”? Did something change in the plans, or is it all just marketing hype?
Why, anyway, would a reputable hotelier to claim that he is building a “6-star-resort”? The star system originated in
How did the area of the property come to grow from 21.5 acres to 31.5 acres?
Long Bay is on the north-west coast, not the south-west coast.
Would a photograph of the real
Have you been able to work out from the various promotional pieces above how the investment is structured? How exactly will the individual investors, the Anguillian land-owning family, and the Anguillian government and public, all be protected?
And, can anyone tell me how the government of
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