dolphin estate investment guide - cayman islands - dsr asset management ltd

8/9/2019 Dolphin Estate Investment Guide - Cayman Islands - DSR Asset Management Ltd

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DOLPHIN ESTATE

CAYMAN BRAC


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1.1 Property Market Overview

Although Caymans economy is based primarily on the twin pillars of the territorys

a key economic generator and a spin off from the tourism sector.

There are no legal restrictions of any kind to foreign ownership of property in Cayman,

which makes it very attractive to overseas investors. A real estate title can be held

in one name, a group of people or by a company or corporation. Title to property is

granted and guaranteed by the Cayman Islands Government protecting ownership.

These attractive factors, in addition to no annual property tax, no inheritance tax,

political stability, favorable landlord and tenancy rules, a beautiful natural environment

property market.

1.2 Tourism-fuelled Economy

The territory has enjoyed stable economic prosperity for many years, with steady

GDP growth being fuelled by luxury tourism, attracted to the clean, friendly and safe

ambiance of all three islands.

The Tourism industry is responsible for more than 70% of Caymans GDP. This is

fuelled by the islands vast unspoiled beaches, duty-free shopping, SCUBA diving and

Its crystal-clear waters and unspoiled reefs make the Caymans one of the worlds most

revered SCUBA diving destinations, with Little Cayman being listed as one of the best

diving sites in the world.

The Cayman Islands are also the world leader in the registration of mega-yachts, and

a major player in the registration of other vessels, thus underlying its proven capability

to compete on an international level.

1.3 Financial Services Industry

banking liabilities and a concentration of top-quality service providers such as UBS

and Goldman Sachs.

domestic and international levels.

The most prominent sectors are banking, hedge fund for mation & investment, structured

1.4 Political Stability

The success of the Cayman Islands originates from a long-standing stable government,

operating British common law.

The Caymans have cultivated a robust platform to foster continued successful economic

skilled personnel.

1.5 Commitment from the Government

The Cayman Administration have committed to bolstering long term growth of economic

output with continued investment in infrastructural enhancements.

by their current airport expansion program, in which terminal capacity will be tripled.

This will support the addition of new air routes into the islands from north-eastern

markets for US visitors.

Further initiatives aimed at boosting stay-over arrivals include a new promotional

campaign by the Department of Tourism to target secondary markets such as Canada

and the UK under the slogan of Three islands, one idyllic destination.

the territorys dedicated investment promotion agency with a mandate to facilitate and

stimulate long term investments in all sectors of the economy.

1.6 Population Growth

With a current population of 57,000 residents, the CIA World Factbook lists theCayman Islands as the 34th fastest growing population in the world at 2.39% per

a greater level of growth of 3.5% against the same period in 2007. Comparatively, the

UAE is the highest at 3.69%, whilst the UK is listed at number 175 with a growth rate

1.0 The Investment Argument


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1.7 Construction and Real Estate

representing a 12.5% increase on the previous year. Furthermore, despite a global

decline, the number of transferred freehold properties rose by 4.5% in this year, to a

1.8 Tax Residency

High-net-worth investors are encouraged to invest in the Cayman islands, with a view

this may present. Application for residency is available via two different channels,

either as Wealthy Retirees or Entrepreneur/Investors.

1.9 Summary

With the 10th most valued currency in the world, the highest standard of living in

the Caribbean, its own stock exchange, no direct taxation and a distinguished

investments.

No local taxes - there is no income tax, no inheritance tax, no non-residents tax,

capital gains or other similar taxes in the Cayman Islands

Stability and Security - the Cayman Islands has a stable government, sophisticated

infrastructure and a strong economy based on international banking and tourism

Privacy - no reporting of income or ownership to any government agency

Investment freedom - no restrictions on investment purchases

Comprehensive investment services and opportunities

Increasing population growth and commitment to securing increased tourism

revenue


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2.1 Introduction

In the face of current global market conditions, the average number of Cayman Land

A viable, and potentially lucrative opportunity to purchase freehold plots of land issued

with planning consent for residential development is now available to investors.

These building plots will be delivered with communication and utility infrastructure in

place, including roads and electricity, giving owners the opportunity to develop their

own bespoke luxury villas.

their investment at a later date.

2.2 Developing your plot

personal use, rental returns or simply to sell on completion.

A choice of Architects, Surveyors, Engineering and Project Management services, and

facilitate a straightforward and bespoke service.

2.3 Realizing your investment

As populations grow, the challenge of balancing the increasing need for housing with

the growing importance of environmental and heritage concerns means that land

with development or building potential can provide increasingly strong returns for

investors.

of the price increase that will be associated with the completion of infrastructure

components.

The second, longer term scenario will harness the combined increases in value

value.

2.0 Investment Options


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3.0 Developing your Plot

3.1 Land purchasing costs

There is no direct form of taxation levied within the Islands, aside fr om a one off Stamp

Duty on real estate, at time of purchase.

Stamp Duty is charged at 7.5% on Grand Cayman and 6% on Little Cayman and

Cayman Brac.

3.2 Project Services

DDL Studio Ltd.

Based upon your requirements and objectives, the following scope of services are

available:

Design of bespoke individual villas and facilities.

Design development leading to planning application.

Preparation of renderings and plans suitable for marketing purposes.

Constriction documentation including all structural, mechanical, electrical and

plumbing design.

Building permit application.

Preparation of bills of quantities / schedule of rates for the proposed works.

Tender procedure.

General contract documentation.

Contract administration / project management.

3.2 Projected land development costs example

All building plots will have planning consent to construct a detached villa over 2 storeys.

Each story is allocated a built area covering 25% of the total plot square footage.

The budget for architectural, engineering and project management services should be

based on 10% of the construction costs.

Allow 2 - 3% for miscellaneous costs.


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4.1 Payment Plan Options

Each parcel of land is purchasable under the following terms:

First Payment: 30% of purchase price within 7 days of reservation

Remaining balance can be paid, interest free, as below:

Option 1: Payable quaterly over 1 year

Option 2: Payable quaterly over 2 years

Option 3: Payable quaterly over 3 years

4.2 Purchase Procedure

Reservation Agreement completed, signed and returned by fax or email1.

Deposit paid via credit card2.

Plot taken off the market3.

Original copy of signed Reservation Agreement expedited by registered post,4.

along with copies of required supporting documents

5.

Purchase & Sale Agreement prepared by land owner and couriered to buyer6.

Buyer receives and completes Purchase & Sale Agreement7.

First Payment sent via bank transfer

Signed Purchase & Sale Agreement expedited by registered post by buyer9.

Title deeds issued once 100% purchase costs have been received by land10.

owner

4.0 Purchasing Structure 4.3 Due diligence

All relevant due diligence has been carried out on each building plot by one of the

available upon request.

4.4 Transferability

Before title deeds are issued

Investors have the option of selling their contract for the freehold plot of land at any

On receipt of title deeds

There are no legal encumbrances to prevent title deeds being reassigned.

All land in the Cayman Islands is recorded in a single registry. The land registry is

maintained by the government which effectively guarantees title.

There are no time limits to development and planning permission will not expire. Plots

as an asset can be willed and inherited.


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5.1 Location

The Cayman Islands comprise of Grand Cayman, Cayman Brac, and Little Cayman.

They lie south of Cuba and north west of Jamaica, timezone GMT -5.

Grand Cayman is by far the biggest with an area of 76 square miles. The two Sister

Islands of Cayman Brac and Little Cayman are located about 80 miles east of Grand

Cayman and have areas of 14 square miles and 10 square miles respectively.

All three islands are surrounded by healthy coral reefs, which lie at the top of dramatic

walls and drop-offs close to shore, creating ideal conditions for diving and sport

5.2 History

Christopher Columbus discovered the Caymans in 1503. They remained uninhabited

until well after the 1670 acquisition of the islands by the British Crown, which has held

dominion over the three islands ever since.

Its superior diving conditions put the Cayman Islands on the international tourist map in

the early 1950s. Despite its diminutive size, Little Cayman quickly established itself as

a top diving site. Bloody Bay Marine Park has some of the best wall diving anywhere

in the world.

During the next decade, Caymanians began to draw up the tax structure that would

make Grand Cayman an economic powerhouse and at the same time put in place an

infrastructure that has made it the undisputed capital of Caribbean tourism.

5.3 Money

87,000 companies were registered in the Cayman Islands as of 2008, including almost

300 banks, 800 insurers, and 5,000 mutual funds. A stock exchange was opened in

1997.The Cayman Islands have more registered businesses than they have people.

With an average income of around $42,000, Caymanians enjoy the highest standard of

to US$1 (US$1 equals CI$1.25).

5.0 Background Information 5.4 Travel

Several airlines serve the Islands, which are just over one hour south of Miami. Thes e

include the national airline Cayman Airways, American Airlines, USAIR, Northwest,

Delta, Continental, Air Canada, British Airways, and Air Jamaica.

The national carrier serves Miami, Houston, Tampa, Orlando, Fort Lauderdale, Boston,

Chicago; Kingston and Montego Bay, Jamaica; Havana, Cuba; and Cayman Brac and

Little Cayman. Direct links with other US gateways such as Atlanta, New York and

Charlotte are provided by the US carriers serving the Islands.

Robert Owen International Airport are available with British Airways.

5.5 Climate

The Cayman Islands boast an exotic, tropical climate throughout the year, with trade

winds moderating high temperatures which range from 25oC in winter to approximately30oC in summer. Hi gh season runs from December to April where temperatures are

generally cooler and more favorable for tourism. The rainy season is typically from May

to October with short burst showers

Strict building codes are in place to withstand hurricanes. The government has

appropriate measures in place to prepare for such conditions and offers a hurricane

protection policy guarantee in order to maintain tourism growth.

A

A

B

Grand Cayman

Little Cayman

Cayman Brac

0 5 Miles

0 50 Miles

B

GeorgeTown

The Sister IslandsLocation

Dolphin Estate


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0 5 Miles

CAYMAN BRAC

West EndPoint Dick

SessingersBay

SOUTH SIDEROAD WEST

SOUTH SIDEROAD EAST

ASHTON REIDDRIVE

WEST ENDROAD

Spot Bay

Creek

DennisPoint

The Rock

DeadmansPoint

Stake Bay

Bamboo Bay

Stake Bay Point

Mallarbs Point

Booby Point

Bessy HowardCay

Salt WaterPoint

JenniferBay

HawkesbillBay

Tom JennettsBay

Cat HeadBay

PollardBay

North East Point

Gerrard SmithAirport

DOLPHIN ESTATECAYMAN BRAC

6.0 Project Location

6.1 Cayman Brac

Cayman Brac is the second largest of the Cayman Islands - 12 miles long by 2 miles

wide.

It is easily recognisable with a skyline of sheer limestone Bluff which runs through the

centre of the island. The highest elevation above sea level on the island is 140 feet and

the island is home to approx 1800 residents.

They are a warm and independent population who take pride in their homeland and

enjoy sharing it with visitors.

Cayman Brac boasts a well established infrastructure in small towns like West

End, Watering Place, Cotton Tree Bay, Creek and Spot Bay, which includes many

facilities not readily available on other small island locations. Brac is a blissful piece

of paradise.

6.2 Dolphin Estate

Cayman Bracs rugged 14 square miles retains the charm and friendliness of a

traditional seafaring community - yet it offers the countrys most dramatic scenery.

Brac is the Gaelic word for bluff, the Bracs dominant natural attraction. It is a

limestone ridge which rises gradually from the west along the center of the island to

140 ft. at the eastern tip, plunging as a sheer dramatic cliff into the indigo Caribbean

Sea below. It sculpts the landscape into unexpected vistas carved with caves and

Dolphin Estate, however, is located on the west of the island which is ringed by white

sandy beaches and warm, shallow waters which is an ideal place to relax and soak in

the sun or to go SCUBA diving around the islands newest attraction the wreck of the

330 ft. M/V Captain Keith Tibbetts, a Russian built Cuban naval frigate which was sunk

off the islands northwest coast in September 1996. It is already the home for a variety

of marine life. There are two other small wrecks off the Bracs coast.


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7.0 Advisors

Maples and Calder - International Law Firm

PO Box 309, Ugland House

South Church Street, George Town

Grand Cayman KY1-1104

Redmount Trust Group Limited - Wealth Management and Offshore Specialists

Library Street

Gibraltar

DDL Studio Ltd - Architecture and Project Management Services

Seven Mile Beach

Grand Cayman

KY1-1206

Fax: +1 345 945 3623 www.ddlstudio.com

Cayman Islands Government - Planning Department

Leeward One Building

West Bay Road, George Town

Grand Cayman

Tel: +1 345 769 7526 www.planning.gov.ky


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