 |
|
Stirling Mortimer Property Fund |
Stirling Mortimer provide an innovative approach to
off plan overseas property purchase via a range of
closed ended investment vehicles
The purchase and sale of off plan
contracts within a limited timescale provides secure
lower returns, and the opportunities for high growth
still with underlying protection of capital.
Stirling
Mortimer Global Property Fund: No 4 Fund
- Cape Verde
Following the
successful launch of the three previous cells,
a new Fund has been established, Cape Verde -
No 4 Fund:
 Cape
Verde is a group of islands that lie off the west
coast of Africa. Originally, a colony of Portugal,
Cape Verde was granted its independence in 1985.
The Cape Verde government recognises that tourism
will form a major part of its gross domestic product
and is allowing development. Tourism on the islands
increased by 26% between 2005 and 2006 and new
air links are opening making them more accessible
than ever. For Europeans the Cape Verde Islands
have been touted as the Caribbean without the
jet lag and as tourism increases there are potential
profits to be made within the real estate market.
As with our previous Funds, great
care has been taken to select high quality developments
located in excellent positions. Initially the
Fund will invest into the Paradise Beach resort
on the island of Sal and the Santiago Golf Resort
on the island of Santiago. These sites are either
beach front or located on the edge of golf courses
near to the sea.
 The
Fund aims to derive profit from the purchase and
resale of Right To Purchase (RTP) contracts in
Cape Verde. An RTP contract is the right to purchase
a pre-constructed building, at a specified price,
to a specified quality, in a certain timescale.
We purchase them at the first stage of construction
of the property.
The contract is a tradable commodity
and the specific aim is to sell the contracts
prior to the completion of the property at a higher
value than the option price. The off-plan price
is set to reflect the narrow market that exists
for the purchase of pre-constructed property and
it is a general principle of worldwide construction
that the price of the properties should increase
as the construction process is completed and the
market is opened up to a wider clientele.
 The
percentage return is typically accentuated as
the growth is on the whole value of the building
whereas the Fund has only contributed typically
45% towards an RTP without the need to enter into
any borrowing arrangements. During the construction
process it is not unusual, but not guaranteed,
to see the price of a property increase by between
20 to 30% and this creates a potential return
on investment of between 44 to 66%. Coupled with
this is the fact that Cape Verde is an emerging
market and the potential for capital growth is
excellent, with many pundits believing we will
also see up to 50% growth in property prices over
the next two years.
The investment is a registered closed
ended cell of a protected cell company and, although
it is listed on the CISX, there is no guarantee
that there will be a secondary market for the
shares. This means that the investment should
not be readily considered realisable.
Final closing date 31 January 2008,
or earlier if fully subscribed.
Use the column on the right
to download the relevant materials related to the
latest Stirling Mortimer property fund.
Call Kenver now on 0121 6982022,
or use our friendly [enquiry
form] to learn more.
|
