Get to know us and follow our latest adventures both in the office and further afield
Construction Pushes Ahead at Bacolet Bay, Grenada
February 7, 2013Article by Ray Withers
Following on from Investment Consultant Greg Foster’s recent trip, I was thrilled to see the latest construction pictures at the Bacolet Bay Beach Resort in St David’s, Grenada and to get the even more exciting news that a major construction agreement has now been signed between Bacolet Development Finance Ltd and China Machinery Engineering Corporation (CMEC), who are undertaking the construction of this spectacular 5 star development.
We are delighted about the involvement of such a prestigious Chinese construction and engineering organisation who work worldwide, in over 150 countries, specialising in areas as diverse as energy, transportation, electronic communications, housing construction, manufacturing and processing plants, environment protection and international mining.
With the build now steaming ahead on the luxury villas, Bacolet Bay is creating much needed work for the local community. Around 50 local Grenadians are expected to be employed alongside the Chinese construction and engineering staff, with over 100 locals working at Bacolet Bay when the resort opens. In addition the Resort and Spa will generate extensive work for numerous support services and local businesses.
Indeed the start of construction couldn’t have come at a better time as demand for hotel rooms throughout the Caribbean continues to rise. According to Hotel News Resource, the Caribbean hotel industry has reported strong revenue increases over the last year with the average daily rate up 3.8% to US$170.50 and occupancy increasing 7.1% to 66.4%.
In fact occupancy levels in Caribbean hotels fared far better than others nearby locations such as Mexico (+3.1%), Hawaii (+5.3%), Florida (+3.1%) and Central America (-4.7%). And with Grenada offering some of the Caribbean’s most famous white sand beaches and its reputation as the “Spice Island” the future looks rosy for our clients investing here.
Located in a prime position with superb sea views, the Cinnamon Suites will feature designer interiors and are being offered at the moment with a free luxury furniture package worth $35,000.
These spacious 1 bedroom apartments benefit from being at one of the highest points in the resort but close to all the communal facilities and are sold at 30% below an independent real estate valuation. Offering a NET yield of 10.5% per annum over 8 years plus 4 weeks personal usage (one in high season), the Cinnamon Suites are offered with up to 70% mortgage finance and feature a 3 year Buy Back guarantee with a minimum uplift of $106,500.