Where is Cape Verde?

Situated in the Atlantic Ocean, off the west coast of Africa and just two hours south of the Canaries, Cape Verde is a tropical archipelago consisting of ten islands and five islets.

What type of properties are they?

Luxurious properties within 5* resorts. The properties range from garden suites, swim up suites, premium suites, duplex suites, beach front villas, penthouses and more.

What prices do you offer property for?

Fractional ownership starts from £10,500 and full ownership from £150,000.

What is fractional ownership?

This model of property ownership enables un-connected buyers to collectively purchase high end property. Please find out more about Fractional ownership here.

Is the property freehold?

Yes, the property is Freehold.

Is the property fully managed?

Yes. The properties are fully managed on your behalf by world renowned operator Melia Hotels International.

Are there any management costs?

You will never need to physically pay any management costs as they are deducted prior to you receiving your NET returns.

When are returns paid?

12% Fixed NET pa until resort opening or for the first year (Paid Monthly & Tax Free). Minimum 7% Fixed NET Returns pa for 5 years (Paid Quarterly).

Where are returns paid?

Returns are paid into a bank account of your choice anywhere in the world.

Are my rental returns guaranteed?

Yes, the returns advertised are contractually agreed with the developer.

How long are the rental returns guaranteed for?

12% Fixed NET pa until resort opening or for the first year. Minimum 7% Fixed NET Returns pa for 5 years (Paid Quarterly). After year 5 the returns are projected 6-10% pa.

Do I need to pay tax on my returns?

Any income should be declared if taxable in your country of domicile. Please seek professional tax advice for further information.

Is there a resale option?

Yes. From year 5 there is an assured resale option where the property can be listed and sold on your behalf.

The developer offers an exit strategy option on new investments where it agrees to market the property for sale after the first five years of investment at no less than the nominal value. This offers a further layer of protection if the anticipated market drivers do not positively impact on real-estate growth. Given the positive tourism trends in Cape Verde, the underlying tour operator guarantees and a growing hotel and resort portfolio, the future outlook for the developer is set to be positive and stable.

How much is the resale for?

The original list price of your property plus any capital appreciation realised (Conservative estimate of around 3% pa).

Can I view the property before purchase?

Yes, we would be delighted to arrange a viewing trip for you. A viewing trip allows you to realise this opportunity for yourself as you relax in one of the luxurious 5-star Resorts.

Do I get any personal use at the property?

Any fractional purchase below £40,000 is for investment only, between £40-80,000 includes 1 weeks free personal usage per year, £80-110,000 includes 3 weeks usage per year and a full ownership purchase gets you 5 weeks usage per year.

Can I allocate personal use to family and friends?

Yes.

How secure is my investment?

With this you are dealing with the market leading developer in Cape Verde and world class hoteliar (Meliá Hotels International), there is an incredible track record since the 1st resort (Tortuga Beach) opened in 2011.

Every resort has been delivered on time, existing owners have received between 6-9% NET pa since 2011.

A deal is in place to construct two upcoming developments for The Hilton, once these are completed the developer will hold assets in access of €500 million. They have also seen NET profits of €34 million+ pa for the last 3 years in a row.

TUI (Thomson) have pre-purchased 75% of the entire occupancy for all of the resorts for at least 3 years with a view to extending it further.

ARC Ratings, S.A. (ARC Ratings) has assigned the final public "BBB" issuer medium and long-term rating, with a Stable outlook, to the developer, based on its strong business model, strong international hotel brands, guaranteed occupancy by an international tour operator and low leverage, despite its investing and developing phase and exposure to Cape Verde.

The most recent reports have shown a 13.2% increase in visitor numbers to the Islands year on year, with macro models analysis forecasting a further 5.8% rise by 2020 and the World Travel and Tourism Council naming Cape Verde as one of the top 10 countries for tourism growth by 2024.

Investors today benefit from the fact the developer has developed more than 2,228 hotel rooms, suites, apartments and villas across 5 operational Resorts. These operational Resorts attract revenue and occupancy guarantees from globally recognised hotel and tour operator brands. These guaranteed revenues bring additional underlying financial strength to the developer and its ability to service long-term investor returns.

Leading Resort brands are arriving, the touristic market is booming, bringing about an increase in airlift and government sponsored investment in touristic infrastructure.

The developer is now the driving force of this tourism boom. The most notable difference is that a growing number of recognised tourism brands are waking up to the fact Cape Verde is a politically stable, easily accessible and affordable safe haven (not to mention a tropical paradise!). Part of this realisation and shift to Cape Verde has been fuelled, in part, by the incredibly unfortunate circumstances in certain “MENA” regions (Middle East & North Africa).

How do I reserve a property?

Once you have chosen your property we will send you a reservation form to complete. Once we receive completed form back your unit is provisionally taken off the market.

How much is the reservation fee?

£500 for fractional ownership, £2,000 outright ownership. Reservation fee is fully refundable.

Who do I pay the reservation fee to?

You pay the fully refundable reservation fee directly to the developer.

Who do I pay the full funds to?

You pay the full amount to the developer. We do not handle any client funds but act as an intermediary between you and the developer.

Do you charge extra for your services?

No, we offer our services completely free of charge and there is no mark-up on prices for using our services. You do not need to pay us anything.

How does the purchase process work?

  • Choose a unit
  • Complete reservation form
  • Once we receive completed form back your unit is provisionally taken off the market
  • Pay £2000 deposit (outright ownership) or £500 (fractional ownership) by bank transfer (fully re-fundable), the reservation is then official
  • You will then get a welcome call from the developer who will arrange the contract proper to be sent and answer any questions you have at that stage
  • Grace period with the contract to ask plenty of questions and make sure you are absolutely happy with everything and would like to proceed
  • Return signed contract and make payment arrangement (less deposit/reservation fee)
  • Start seeing returns instantly!

What are the purchase costs?

Fractional ownership completion costs are incorporated into the price. Outright ownership completion costs are just 2.5 - 3%, this is due when your property is signed off prior to resort launch or straight away if the resort is already fully operational.

Are there any additional costs or fees involved?

No, just the completion fee.

What exchange rate is used for the purchase?

We work on your behalf to get the best possible exchange rate at the time of purchase.

Do you offer new build developments or existing properties?

Both. You may choose to purchase in a fully operational resort or one that is under construction.

Will the construction work affect the existing resorts?

To minimise distractions, builds are overlapped, all the heavy (loud and dusty) works (foundations etc) for the next development take place prior to the complete resorts opening. And in any case, there is a significant distance between each development.

How many existing resorts are there?

There are currently 3 fully operational resorts with another due for completion in December 2018.

What occupancy rates do the resorts have?

Existing resorts have an occupancy rate of a minimum 75%. The occupancy rate is usually around the 90% mark during the peak season.

TUI (Thomson) have pre-purchased 75% of the entire occupancy for all of the resorts for at least 3 years with a view to extending it further.

Can I upgrade my property?

Yes, once you have seen the investment working for you and you would like to increase your earnings and personal use, you can increase your level of investment.

Ready to find out more?

View the current Cape Verde property investment opportunities!