Resort Group Launches new 5 Star Cape Verde Hotel
05 October 2011
This week saw the official launch of Llana Beach, a new 5 star hotel by Resort Group on Cape Verde's Sal Island. The hotel is the third and final phase of the firm's £250 million resort on the island, and is to be built directly between the first 2 successful phases.
Phase 1, the Tortuga Beach Resort and Spa Resort was opened earlier this year with all 372 of its well appointed units having sold mostly (94% to Brits). Phase 2, the largest of the three with over 1000 units is currently under construction and is already 90% sold out, again mostly to Brits. Both of these are made up of a wide range of different units, including hotel master suites, 1-2 bedroom apartments and villas up to 5 bedroom, while Llana is purely a hotel offering suites of various sizes. But all the resorts are 5*, and benefit from the full range of facilities across the entire resort complex.
The properties have sold heavily to those buying as part of a UK Self Invested Personal Pension. SIPP investors can only by commercial property, but managed resort properties like those of the Resort Group's resort (managed under the Melia brand) are applicable because of their commercial management, and because the SIPP investors leaseback their property and take only their free usage.
Such deals are becoming increasingly popular with SIPP and other investors, because they are a serviced and hands-free investment and offer the solid rental returns from being under the management of an internationally recognisable brand. Cape Verde is proving particularly popular because of rising tourism, and because the small islands and their rugged landscape offers limited building land, which will keep a lid on supply thereby pushing up prices in the mid-long term.
Llana Beach is on sale now, with off plan units starting from €139,950, and there are also shared ownership deals on offer as entry level investment opportunities. Investors are being told to expect yields of around 6%, with returns being pooled and shared fairly across similar unit sizes.