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Marina View St. Kitts, Southeast Peninsula, BWI (the “Secret Caribbean”)

Marina View St. Kitts, Southeast Peninsula, BWI (the “Secret Caribbean”). Executive Summary.

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Marina View St. Kitts, Southeast Peninsula, BWI (the “Secret Caribbean”)

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  1. Marina View St. Kitts, Southeast Peninsula, BWI (the “Secret Caribbean”)

  2. Executive Summary • St. Kitts, an exotic and nearly unknown island in the Caribbean, is just at the beginning of a major expansion of its tourist market. Real estate prices have climbed quickly in the past five years. The Government of St. Kitts offers an exceptional incentive package, including duty-free imports and extended tax holidays. The offered property has beautiful views, is ideally located, and will border the new, luxury Auberge Resorts project, overlooking its marina.

  3. Table of Contents • Executive Summary………………………….2 • St. Kitts – Overview…………………...……..4 • Tourist Market……………………………......8 • Tourist Infrastructure………………………..15 • Real Estate Market…………………...……..18 • Competitive Environment…………………..26 • Investment Characteristics………………….28 • The Marina View Property….……………....34 • Property Views……………………………...41 • Asking Price………………………………...49 • Contact……………………………………...50

  4. St. Kitts - Overview St. Kitts - Overview

  5. What is St. Kitts? • An undeveloped Caribbean paradise with no tourist market until five years ago. • A country with only one major hotel (several more are planned).. • A stable Parliamentary democracy – the court of last resort is Privy Council in London, UK. • Dedicated to • transitioning its • economy to tourism • 65 square miles, with a • population of 39,000. • Still inexpensive. • Not a single traffic light • in sight.

  6. St. Kitts is optimally located. • 2.5 hours from Miami, 3.5 hours from New York, 4.5 hours • from Toronto, 9 hours from London

  7. St. Kitts and Nevis is shaped like a cricket ball and bat.

  8. Tourist Market Tourist Market

  9. The number of tourists has increased sharply. Overnight CAGR: 18.5% Total CAGR: 24% Source: St. Kitts Ministry of Tourism

  10. Tourist growth rates have rebounded since early weakness. Sources: St. Kitts Ministry of Tourism, www.onecaribbean.org

  11. Paradise Properties Overnight visitors come mostly from the USA. Source: St. Kitts Ministry of Tourism Note: this is expected to change as the Auberge, Mandarin Oriental, and Ritz-Carlton will attract a more international clientele.

  12. There is demand for lengthy stays in hotels and residences . Source: St. Kitts Ministry of Tourism Note: the average tourist spends US$104 per day (tourists staying in private residences spend an average of $36/day; tourists staying in hotels spend an average of US$161 per day).

  13. Tourism is a centrally important segment of the economy. Source: Caribbean Development Bank

  14. The tourism industry is young and enjoys governmental support. • “St. Kitts is currently a popular destination for those seeking to establish a business foothold in an accelerating economy. All sectors of business are needed: retail, restaurants, marina/diving services, general business services, light manufacturing, medical services, construction, and quality hospitality management services.” www.resortconsultants.com • The government has sponsored booths at major trade shows in New York and London • “Our goal is to build a tourism industry that won't suffer too badly from economic and political shocks” – Ricky Skerritt, Minister of Tourism, Sports and Culture 02/10/05,The Globe and Mail

  15. Tourist Infrastructure

  16. The airport has been expanded for the 2006/07 season. Major Improvements • Additional runway to accommodate six 767-300s • Night landing facilities • New capacity: 400 passengers/hour Scheduled Service • American Airlines (Miami) • American Eagle (San Juan) • US Airways (Philadelphia, Charlotte, Richmond - seasonal) • Skyservice (Toronto - seasonal) • Excel Airways (London-Gatwick) • Multiple carriers throughout the Caribbean

  17. The port has been transformed into a world-class facility. • The port has recently been refurbished. • One of only two ports in the Caribbean that can accommodate the largest cruise ships in the world. • New features include a high-end duty-free shopping plaza & casino • Handles ships with a maximum draught of up to 30 feet; port has a 400-foot sheet pile marginal wharf, roll-on-roll-off facility, transit sheds, high mast light, a moving buoy to facilitate berthing vessels between 400 and 750 feet long, and a 75-boat marina

  18. Real Estate Market Real Estate Market

  19. The real estate market is still in an emergent phase. • Demand far outstrips supply, especially in US$200,000-$500,000 market. • No luxury inventory to speak of, but changing rapidly. • Land is still relatively inexpensive. • Few transactions = no standardized pricing. • Economic citizenship has driven investment.

  20. The most attractive area for development is the Southeast Peninsula (SEP)… …which is still waiting for its first hotel.

  21. However, several large developments on the SEP have recently been announced. • Auberge Resorts - www.stkittspeninsula.com • Two hotels (Auberge and Mandarin Oriental), multi-unit and villa residences, marina, Rees Jones Designed Golf Course • Estates on Sundance Ridge -www.sundanceridgestkitts.com • Villas, starring at US$2.2 million • Heritage Plantations • Villas, starting at US$3 million • Marine World St. Kitts • Family destination centre

  22. Marine World Auberge Sundance Ridge (US$2.2MM+ residences) Rees Jones designed golf course Paradise Properties Marina Hotel (Mandarin Oriental?) The largest development is scheduled to open in 2008. Heritage Plantations (US$3MM+ residences)

  23. The price of undeveloped land on the SEP has appreciated significantly. CAGR: 16.4% Source: Author’s conversations with local realtors.

  24. Developers have also started projects on other parts of the island. • Ritz-Carlton – As yet unannounced, but confirmed • Rawlins Plantation Inn - www.rawlinsplantation.com • Expansion of existing hotel, addition of spa, villas • Ocean’s Edge Resort - http://www.newfoundproperty.com/oceans-edge.asp • 124 apartments, 48 townhouses, 23 villas • Marriott St. Kitts Beach Club – www.marriott-stkitts.com • 88 villas, renting from US$16,400-$69,500 per week • Kittitian Heights Resort - www.kittitianheights.com • Hotel, retail area, multi-unit residences, villas, golf course designed by Ian Woosnan, recording studio, racetrack, spa • La Vallée Golf Course and Development • Links-style golf course designed by Charles Howard, hotel, villas, marina, sports complex

  25. Paradise Properties New development is concentrated in two areas, one bordering the SEP Rawlins La Vallée Kittitian Heights Ocean’s Edge Royal St. Kitts Golf Course (recently refurbished by Tom McBroom)

  26. Competitive Environment

  27. The Marriott Resort and Royal Beach Casino currently operates in a competition-free environment • The only major resort on the island. • The largest casino in the Eastern Caribbean • The Marriott has done exceptionally well and has recently announced an addition of 88 2 & 3 bedroom villas, renting forUS$16,400-$69,500 per week.

  28. Investment Characteristics

  29. There is a very attractive incentive package for developers. • Standard Incentives: • 15 year corporate tax holiday, with subsequent graduated rates • Total exemption on import duties on parts, raw materials, and • machinery • Total exemption on hotel furnishings and equipment • Repatriation of profits & capital • Casino license if 200 rooms are built • No alien landholding license (ordinarily 10% of property value) • Negotiated Incentives: • Total exemption on all supplies, including food, liquor, goods for • resale • Expanded tax exemptions • Use your imagination…the government is highly motivated to • attract investment Source: Office of the Deputy Prime Minister

  30. Labour is inexpensive, and the literacy rate is 98%. Construction Wages Mason:US$2.78 - $4.44/hr. Carpenter:US$2.60 - $4.44/hr. Painter:US$2.22 - $3.33/hr. Electrician:US$2.78 - $4.44/hr. Plumber:US$2.69 - $4.44/hr. Hotel Employee Wages Entry Level: US$1.40/hr. Semi-Skilled: US$1.85/hr. Casino Workers: US$1.40/hr. Security Guards: US$2.22/hr. Other Terms Overtime: 1.5x for work in excess of 40 hours/wk. 14 days paid vacation after one year of service Social Security: 5% Social Services: 5% Worker’s Injury Benefit: 1% Severance Fund: 1%

  31. St. Kitts is tax-advantaged for employees and investors. • No capital gains tax if assets are held for one year. • No personal income tax. • Strong bank secrecy laws (Confidential Relationship Act, 1985, mandates prison time for disclosure of financial information to foreign governments). • No net worth tax, gift tax, sales tax, turnover tax, or estate duty.

  32. Economic citizenship is a powerful draw for investors. • Upon purchasing real estate with a value equal to or greater than US$250,000, the buyer and his or her family are eligible for citizenship. • The St. Kitts and Nevis economic citizenship programme is the oldest of its kind, and internationally respected. • A fee of $35,000 per adult ($15,000 per child) is required in addition to the real estate investment.

  33. Construction costs are competitive. • Around $120 per sq. ft. for a single-floor structure • Less for multi-floor structures

  34. The Marina View Property

  35. Driving on the Southeast Peninsula…

  36. Paradise Properties ...Look left, the Atlantic Ocean…

  37. Paradise Properties …Look right, the Caribbean Sea.

  38. Paradise Properties Marina View is in a great location on the island... Marina View • 15 minutes from the airport • Overlooking the Great Salt Pond, future site of the Auberge Resort Marina

  39. Paradise Properties …and will soon be surrounded by high-end development. Marina View Marine World Auberge Sundance Ridge (US$2.2MM+ residences) Rees Jones designed golf course Marina Heritage Plantations (US$3MM+ residences) Hotel (Mandarin Oriental?)

  40. Paradise Properties Sloped terrain provides for striking views from the entire parcel. Marina View Marina entrance

  41. Property Views

  42. Southwest view just after sunset.

  43. Southern view from property - future marina site.

  44. Current view of marina entrance

  45. North vista from Marina View.

  46. The natural, rugged beauty of the SEP.

  47. Infrastructure & Zoning • Water and electrical are nearby and readily available. • The developer will have to put in septic and/or sewage treatment.  • There are no zoning regulations. • Environmental regulations are very lax.

  48. Seller has ability to assist. • The seller is extremely well-connected politically and in the local business community. • The seller can provide assistance on a variety of traditional and non-traditional issues.

  49. US $1,050,000or, US $210,000 per acreor, US $4.82 per square foot Asking Price

  50. Contact Paradise Properties Noah Billick (869) 764-7458 or (514) 667-2039 noahbillick@remax.net David Kawaja (869) 762-6459 or (869) 466-6822 drkawaja@yahoo.ca RE/MAX Paradise Properties

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