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The Daily Mail- March 5th 2010 A place to Parc: A healthy investment and a holiday makes Centre Parcs a winning combination
The Barbados Advocate - September 30th 2010 Merrick’s Resort breaks ground
Nation News - September 30th 2010 Sod turned for $800m project
Money Weekly - October 2nd 2009 Farmland: the asset that's better than gold
In fact, some call farmland as good as gold with yield – because you clock in steady income from rents while you wait for the value to grow. I can think of no better asset to own during any kind of financial crisis. In some ways, farmland is even better than gold or silver. At least farmland is an intrinsically useful thing. It provides a tangible yield in the form of good things from the earth. We all have to eat. As consumers trim their sails, they'll give up a lot before they give up their calorie intake. Anyway, if you believe that we will continue to feel the bane of inflation, then farmland's performance in the 1970s will give you some comfort... While you lost half of your money in the S&P 500, your farmland kept its value nicely. Again, I think that's rooted in the fact that farmland is intrinsically useful. It produces useful and needed things. Farmland treated British investors great just last year. As British housing prices collapsed in 2008, British farmland value rose by 21%. Over the last five years, Brit farmland rose a total 135%. Forget commercial property. That's not a bad ROI in my book. And there's one more way to look at it: This hedge can outperform gold. In Britain, the farmer outpaced the gold owner. Expanding land values rode up 115% since 1983, versus gold at 81%. You can be sure institutional investors are already placing their long-term bets. Almost half the farmland bought there last year was snapped up by banks and funds. Check these investments out soon. I think we're in for broad farmland/agriculture rally that should be good for hundreds of percent returns. As you can see from farmland's past results, it's a great hedge in all kinds of environments.
A storm brews over food, water & powerThe landscape of western Ukraine feels like the land that time forgot. It is a bucolic scene seemingly untouched by the struggle, violence and revolution which have so dominated the country's history. You could call it the latest foreign invasion. No tanks this time, but a state-of-the-art agricultural army is on the move. In large swathes of the country fleets of ultra-modern combine harvesters are bringing in the harvest from new mega farms. Food security Many governments are looking to secure land overseas as a way to ensure the food supply to their country does not fail. In this part of Ukraine it is the British, in the form of the company Landkom, who are making moves which are transforming the landscape, investing millions in machinery and infrastructure. This year the company will harvest 60,000 tonnes of wheat from Ukrainian land holdings totalling some hundred square miles. The company, like so many others, seems to have calculated that if predictions of global food shortages prove accurate over the coming decades, there will be big money in food production.
Mr Spinks is clearly immensely proud as he watches thousands of tonnes of wheat being harvested in the fields he has leased. Most of the agricultural land in Ukraine is broken up into tiny plots, each allocated to a family. Mr Spinks explained that the field we were standing in would have originally been split into 190 different holdings. Landkom's success has been to negotiate thousands of lease deals to put together huge new farms. We met people in Ukraine who are unhappy about the situation. They do not reject technological advances but believe overseas investors should back Ukrainian farmers rather than setting up new "foreign" enterprises in their country. "Every human being is a patriot of their own land, so yes it would be nice to have our own companies, we'd love that, but for right now it is what it is, whoever has got the money, they control the gain," says Stepan Ryzna, a local small holding farmer. Others go further, condemning the deals done by foreign companies as a "land-grab", as rich countries and corporations snap up huge swathes of land in poor, developing countries.
"I feel sorry for Ukraine, here it is, it was colonised by the Russians, it was the grain basket for many, many years, it went downhill and now it is being asset stripped again by the West," he says. "You could say that it is good for the Ukraine, that it is getting inside investment from rich countries, that its productivity will go up, that since the collapse of the Soviet Union it has not had the requisite investment, that at least under Stalinism there was a huge amount of that sort of investment - you can paint that picture - but I'm not convinced by that." Greater development "He needs to come and he needs to get his story straight before he makes opinions which are unfounded. First of all we lease every hectare of land, secondly we pay our lease payments, thirdly we don't bully people to lease us their land - they choose to lease us their land. "The reasons they choose to lease us their land has nothing to do with money - it is an emotional desire to see their region go forward, that's all." And it is clear that many Ukrainians do want to see greater development. Vasili Pryza, head of the local farmers' union, told me he is not against foreign investment, but that ultimately it must be for the good of the Ukrainian people, not for overseas corporations: "In this region we are looking for people who will treat the land properly. We are looking for investors who will invest in things that are in our interest. "It doesn't matter to me if you are English, Chinese or American if foreigners do what is good for this place. That is just my personal opinion." "The key to the whole thing is, and if you get this right I think then you win, that it has to be better that we are in the community than if we're not, than if we went away," Mr Spinks explains.
To some the idea of rich, powerful countries acquiring land in poor, underdeveloped ones is highly questionable. But while some call it "new colonialism" and "asset stripping" others defend the practice as a way of introducing new agricultural technology where it can make a real difference to the global food supply. And, if the warnings of global food shortages are accurate, the basic terms of this debate may shift. The ethical emphasis then may not be on preserving the culture and autonomy of individual nations, but on increasing the food supply to a ravenous world.
An island of prosperity as storms ravage world housingAs property investors and people hoping to retire abroad struggle to find a safe haven in the slump, St Lucia could offer a solution. The credit crunch has put paid to property booms around the globe, right? No, not quite. While the US, UK and European property markets are in price freefall, the Caribbean, and in particular the holiday island of St Lucia, seems to be holding its own – for the time being at least. "Property prices have remained robust throughout the financial crisis," says Allen Chastanet, St Lucia's minister for tourism. "The key is we didn't have a boom to begin with, so building levels were at sustainable levels. Therefore, we're not having a bust.
St Lucia's profile is high at the moment, with singer Amy Winehouse pictured holidaying there. The island is small, no bigger than a medium-sized English county and with a similar population to Peterborough. It is mountainous, with dense rainforest vegetation and lots of inlets and sandy beaches. And property, while not as affordable as hotspots such as Spain or Florida, ranges in price from around $300,000 right up to $4m. Most developments tend to be gated, with onsite shops, boutiques and restaurants. Access to a beach and pool area is normally a given. Some homes are sold as owner-occupier, perhaps to people looking to retire to a hot climate, with direct flights from the UK through Virgin and BA. However, most of the properties on the island are pitched as an investment. "What generally happens is that the buyer has the right to use the property for a calendar month each year, say, and the rest of the time it is rented out to holidaymakers," says Naomi Cambridge from the Sugar Beach resort, a 190-acre development. "The rent then provides an income for the owner." Ms Cambridge reckons that investors can expect an annual return of 7 to 8 per cent. However, the Sugar Beach resort is top-end, reflecting its location in the middle of a world heritage site. Prices start at $705,000 for a one-bed villa with a pool, but in high season tourists fork out up to $1,200 a night to stay there. Even in these recession-haunted times, it seems that visitors from America, Canada and the UK are willing to pay such prices. Ms Cambridge says average occupancy rates at Sugar Beach are 80 per cent over the past two years, and similar statistics are claimed by The Landings resort for the high season, which runs from January to April. Properties at The Landings can be either owner-occupied or rented out. Prices start at $550,000 for a one-bed home and $750,000 for two bedrooms and direct access to the beach and boat moorings, as well as other resort facilities such as a spa, gym and restaurant. "We find that our owners want to stay here for a while and then rent out the rest of the time," says Oliver Gobat, director of sales. "What we do is put the profits made across the resort into a big pot and then the owners get paid an income according to their square footage and how many nights it's available to rent." In the case of The Landings therefore, investor income relies on the resort as a whole making a profit. At some other resorts, investors receive a cut of the total revenue instead. "It's important to check the terms of the income you receive," says Miranda John, international manager at mortgage broker Savills Private Finance. "Do your homework and ensure you visit the property. If the resort seems dead then it may not be making a profit, in which case you're unlikely to get much of a regular income. You'd have to rely on capital growth instead." Ms John adds that it's harder than it once was to fund a purchase in the Caribbean, but far from impossible. "The number of UK banks willing to lend on a property there has shrunk to some four or five big names, but that still represents a choice. There is also the option of a local bank like First Caribbean, although that can be time consuming due to bureaucracy." Crucially, unlike other holiday-home hotspots, St Lucia hasn't suffered from the blight of poorly conducted valuations. "Generally, those assessing the value of property on the ground have been robust in the way they have gone about things, and this helps in getting a mortgage as banks can have confidence in the figures," adds Ms John. As a result, mortgage rates have not risen as much as they have done elsewhere, with borrowers generally being charged around 2.75 per cent above US Libor – the rate at which American banks lend to each other. The maximum loan to value varies between 60 and 70 per cent, and income multiples of three to four times are also achievable. However, purchasers looking to borrow against potential earnings from letting may struggle. "If you're doing this as a buy-to-let then the banks are still going to want you to be able to make your repayments from your own income, rather than any rental money the property brings in," says Ms John. The property-buying process is similar to in the UK, except you have to obtain the rather ominous-sounding "aliens landholding licence", arranged through a local lawyer at a cost of $1,500. If the property is part of a resort development, and the overwhelming majority are, then service charges may apply, based on square footage. If the home is rented out, expect service charges to be higher as regular cleaning has to take place. The biggest bugbear, though for Britons looking to buy in the Caribbean or America is the collapse in the value of sterling. A year ago, the pound was worth two dollars; now it buys around one dollar forty cents, and it may sink further. Against this backdrop, Britons looking to purchase property in dollars could consider taking out what is in effect a futures option contract. Put simply, you purchase an option to buy a set amount of dollars at a specific date in the future at a set price, so insuring yourself against any adverse currency moves between making an offer on a home and having to find the cash to pay for it. Regardless of currency fluctuations, Ms John says buying in the Caribbean is only for those with deep pockets: "This is not a cheap undertaking as it's a top-end holiday destination. But that makes it a little less sensitive to the world economic downturn."
Barbados continues to appreciate despite the economic downturn<Property prices in Barbados are appreciating at between 10 – 15% per year at the middle of the market and often higher at the luxury end, even during these harder economic times. Cluttons Barbados says the property market remains in a stage of growth and has been driven by a strong economy and well established tourism industry. Barbados has fantastic amenities, golf courses, spas and restaurants with direct flights from major cities and of course the great climate and beaches! In recent months Cluttons Barbados has seen a considerable upturn in the high end market and can only think that people are becoming less patient with the lifestyle in the UK. This has all led to a winning formula for British buyers. In the recorded history of property on the island, property values have never declined. Unlike larger countries where property values have come under pressure from issues such as the financial downturn, Barbados property values have continued to show significant strength. It should be noted that the middle market developer or homeowner is now a little more flexible and will entertain some negotiation, however the property market in Barbados is currently holding its own. Tim Morgan, managing director of Cluttons Barbados said: "History has shown that during harder financial times and even recessions, Barbados is affected for the shortest period only whilst people are uncertain and decide not to make a decision. Then as people start to make sense of things and even become fed up, they tend to want to be in or buy a home in Barbados. " Tim Morgan continued : "Not to add insult to injury or be disrespectful during this current global financial climate, Barbados has in the past always performed well as more established and international markets are in decline and then Barbados again benefits as these more international markets bounce back." It is widely believed that property in Barbados is owned by the rich and famous. Although this is still the case, over the years the market has spread and diversified with prices ranging from US$400,000 to US$40,000,000. The west coast has some of the highest property prices in the world and now the south coast is seeing extreme expansion, development and growth due to fantastic beaches, amenities and lower prices. The "Platinum" or West Coast With the Four Seasons luxury residences and hotel under construction at Pile Bay, close to Batt's Rock on the southern end of the west coast and the Portico condominiums very close by at Prospect St. James, this has shifted the critical mass of luxury property from the centrally located Holetown area where the Sandy Lane and Royal Westmoreland properties are located. There are a number of other west coast luxury beachfront developments on this stretch of coast with prices ranging from US$1m – US$10m. Royal Westmoreland and Sandy Lane are currently the premier residential golf resorts on the west coast, with two more major golf developments currently well underway at Apes Hill and Banyan Tree. Barbados is very quickly becoming a major golf destination within the Caribbean and world. The Apes Hill development is located in an extremely beautiful part of the island that overlooks the west coast and in some parts, the east coast as well. One can purchase a one third acre plot of land for approximately US$500,000 and then have a villa designed and built for you. Banyan Tree has plans to build a five star resort that will encompass approximately 180 luxury villas starting at approximately US$3m each. Royal Westmoreland is an extremely well established prestigious golf resort with a host of wealthy and famous owners. The prices at Royal Westmoreland start at around US$520,000. Heading northward along the west coast, there are numerous townhouse and condominium developments in the Mullins, St. Peter area, most of which are not directly on the beach but within easy walking distance to the beach starting around US$750,000. Port St. Charles is a luxury residential marina development located just north of the historical Speightstown. One could purchase a resale villa directly on the beach for US$4m, however one bedroom apartments do start from around US$1m. The Barbados government has just announced a joint venture project with the Rosewood Hotel Group of the USA to build a five star hotel and villas project at the now defunct naval base at Harrisons Point at the northern end of the west coast. Looking further in the developer's field, Cluttons has a 240 acre parcel of ocean front land that forms a part of the Harrison's plantation for sale at US$50m. There are a number of new projects breaking ground on the Platinum west coast including Beachlands, a luxury US$200m development being planned by The Lewis Trust, who are also the owners of the River Island retail chain. In addition, it has been reported that Bruce Ritchie and Nick Leslau have teamed up and purchased a beachfront site to build a multi million dollar high end luxury residential development. The market is currently strong and exciting on the prestigious west coast of Barbados. The South Coast The south coast has seen tremendous growth within the last five years. There are a number of new developments under construction and the prices are lower than on the west coast, which suit the middle market and investment purchaser very well. Higher end developments include The Palm Beach Condominiums which are spacious and offer very good value with quality finishes. These units are 2,200 square feet and larger and start at US$950,000. The Sapphire Beach Condominiums and White Sands Villas are two very good examples of new developments in the heart of the south coast. They both have direct beach access and start at US$700,000 for a one bedroom unit. Prices on the south coast range from US$350,000 – US$2,000,000. The East Coast The rental market for villas and condominiums is expanding and generating a good rate of return for homeowners. A conservative net return of 8 – 15% is achievable through a good marketing strategy and solid property management programme. Full service luxury villas can be rented that include chefs, housekeepers, butlers and even a water sports boat drivers if required. Most rental customers become repeat clients so the market is renewing and growing, which is positive. Flights to Barbados are cheaper than people think ranging from US$600 which is another fundamental reason why tourism across Barbados is growing. Barbados continues to diversify with world class restaurants and a host of activities including sailing, golf, sports fishing, tennis, polo and surfing and visitor numbers continue to grow steadily. Everyone loves the island for its friendly people, laid back lifestyle and warm, Caribbean flavour. There are even home comforts in Barbados with supermarkets stocking Waitrose and Marks and Spencer products. In fact Barbados is known as "Little England" as there are quite a few similarities and an obvious English influence. The continuing appeal of Barbados comes down to a few major factors: Supply & Demand Easy & Direct Access Secure, Proven and Established Investment with Considerable Growth Potential
Tim Morgan, managing director, Cluttons Barbados said: "The reason we list only a tiny number of the better known names is not to sound like a tabloid but to indicate the support, investment and attraction we have as an island. This is the reality of the market place in Barbados and it is growing and now, thankfully, the market has started to diversify and expand into the middle markets. The security within our property market is that prices remain stable and grow as owners are not desperate to sell due to their wealth and the middle markets are able to secure rental income to offset the related costs as Barbados tourism is also still doing well." Lifestyle
TimberMoney does not grow on trees. Unless, that is, you are in the timber business. Plum Creek Timber, the US’s largest private landowner and one of only three timber real estate investment trusts, on Monday reported earnings per share for the third quarter 18 per cent above the previous year. But the Reit’s shares, which rose 20 per cent this year to a record high in mid-September, have since reversed sharply, shedding more than two-fifths of their value. Timberland values, rising from about $1,100 to more than $1,700 an acre in the past seven years, have helped support share prices in spite of weak demand for logs thanks to the housing slump. But Plum Creek, with 8m acres across 18 states, can call off the lumberjacks. Similar to petroleum producers, timber companies reduce output when pricing dips. But unlike the black stuff, trees continue to grow, adding about 5 to 7 per cent a year in value. With southern sawlog prices down 18 per cent year on year this quarter, for example, Plum Creek reduced its harvest by 13 per cent. Meanwhile, the reduction in activity at lumber mills means less residue for paper makers, boosting demand in Plum Creek’s (admittedly lower margin) pulpwood business. Investors fear that a slowing economy will dent demand there also. There are worries, too, that land values may have peaked and the credit crisis could hamper land sales, and therefore cash flow. The latter looks overblown. Plum Creek did temper its outlook for real estate sales – which for the first three quarters of the year only accounted for about a fifth of revenues – and has in the past cut its generous dividend. But the company has been paying down debt and continues to buy back shares, now trading at about half net asset value, arguing that this is a cheap way to increase its holdings of timberland. Investors, too, should consider a stroll in the woods.
Own your own slice of paradiseCredit crunch? What credit crunch? While most of us may be feeling the pinch as fuel and food costs rise – and let's face it, holidays are usually the first thing to be axed – hotel groups all over the world are encouraging people to buy their own slice of their properties.
Tim Moore, partner at Far East Property Solutions, the team responsible for Himmapan Beach Samui, a buy-to-let resort in Thailand, says: 'Buy-to-let hotel investments offer a great way to generate income and are less hassle than trying to manage and let out a traditional holiday home. The key to success is to ensure the hotel has high occupancy rates all year round – look for a great location with a long tourist season and high numbers of visitors. 'Some buy-to-let hotels may also qualify for Self Invested Personal Pension (SIPP) inclusion, so British investors could benefit from up to 40 per cent tax relief as well as exemption from the 18 per cent capital gains tax.' Here are some of the best… Goldeneye, Orcabessa, Jamaica The Crane, Barbados Château de La Redorte, Languedoc, France
Property in Greece: No longer the same old Samos
But go to Samos, and you will be lucky to find anyone to sell you a home. "There are hundreds of people who call themselves estate agents on the island," says Vasilis Louizos, a local property developer. But, Vasilis, how many have shops you can walk into and see photos of properties for sale? He pauses. "Erm… one. Two, if you count the one that's part of a pizzeria in Samos Town."
"Also, in Greece you can only build freehold properties on 2 per cent of a plot. Compare that with 80 per cent in Spain. It is just not cost-efficient to build holiday homes, because for a 100sq m house, you need to buy 20,000sq m of land." Now Barrasford is building Halcyon Hills, the only new resort on the island. But even he was thwarted on his first attempt a few years ago. "I flew to meet the landowner looking every inch the businessman in my smart suit and carrying my laptop and briefcase. He told me to sit on a rock and just look at the view. When I suggested we build a modern holiday complex, he replied that he wasn't going to sell the land to me," he says. "He felt it would ruin the natural beauty of this spot that had remained untouched for generations. So he told me to drink ouzo with him before I left empty-handed. But I always had it in mind to return and build something more sympathetic to the natural surroundings - something the local people would approve of." It may not please the original landowner, but new Greek planning laws are now making it easier for developers like Barrasford to build new resorts in Greece - opening up the supply of property available to foreign buyers. It doesn't mean the Greek hills will now be carpeted with new-build apartments in Costa del Sol style - planning laws are still far too strict for that - but the new laws, part of the government's moves to increase tourism on the islands by 50 per cent by 2013, allow developers to build on up to 20 per cent of their land, providing they are based around a hotel of at least four-star standard. At resorts such as the five-star Halcyon Hills, whose 236 properties on five acres of gently shelving land overlooking the idyllic Klima bay and Turkey, owners can put their property in the hotel's rental pool and receive a government-backed, guaranteed rental return of 8 per cent a year for three years. Halcyon Hills's buildings will be no more than two storeys high and a quarter of the site is dedicated to communal facilities including three swimming pools, three restaurants and a spa run by Blue Spa. There will also be a 38-berth marina. Prices start at £158,000 for a one-bedroom, single-storey house, rising to £825,000 for a three-bedroom waterfront villa. There is also the option to buy some of the properties on a fractional ownership basis from £50,000, which allows two months personal usage each year. Properties can be bought only on a leasehold basis for the first five years, converting to freehold status after that. Buyers at the development should add 4 per cent of the purchase price to cover taxes and legal fees (for other property purchases in Greece, this figure can be nearer 10 per cent - and bear in mind that VAT of up to 19 per cent on newbuild properties is not usually included in the quoted price). "The move to encourage upmarket tourism is a good thing for buyers when they come to sell because, unlike some areas of the Mediterranean, which are carpeted with hundreds of similar properties, vendors here won't face great competition," says Mr Barrasford. "We have also seen surprisingly high demand from Greek buyers, mainly from Athens, which shows there is a strong local market. That is a good sign that the island's property market isn't an artificial bubble inflated by foreign investors." Finding old rural properties to convert on Samos can be tricky, due to the lack of English-speaking agents to point you in the right direction, and prices are not as low as you might expect from an emerging market.
But buying older properties can be "a bit of pot luck", warns John Batty of Aegean Blue. "We bought an old wreck on Crete to renovate and wished we hadn't," he says. "Ensuring you have a clean title is the main problem throughout Greece as there is no organised land registry. There were no title deeds with our house, so we had to ask two old local residents to swear that no one had lived there for a certain number of years. In most cases it's not a problem, but you do hear of long-lost cousins emerging from the fields to claim the house." Buyers should check what the island is like out of season, bearing in mind that direct flights from the UK tend to stop between October and May, meaning a day's travel via Athens. "Samos is a large island with a life of its own outside tourism, so it doesn't close down completely in winter. Crete, Corfu and Rhodes are similar in having year-round life," says John Batty. While it is difficult to track property price-growth on Samos yet, because the market is in its infancy, Savills says that Greece saw double-digit growth last year, with a rise of 15 per cent. "I believe Greece is one of the best places you can invest at present," says Robin Barrasford. "It has natural beauty and good infrastructure, but it also has the potential to offer serious capital returns, unlike other markets that have been hyped and seen a mad rush of foreign investors. Greece has never allowed the building of huge housing estates by the sea and that is its strength. Its property market will never become saturated."
Halcyon days Jonathan Snell, 28, and Marie Ewen, 25, both teachers from Devon, have bought a one-bedroom house at Halcyon Hills for £158,000. They intend to manage their own rentals once the resort has gained a reputation. They say: "It's a working island, which isn't reliant on tourism. The developer and agent are the same firm, so you can keep track of what's going on."
The Sunday Times - May 4th 2008 A growing investment in agricultural land.A fund that lets you make money from farmland - and save on death duties - is seeking investorsAre you hankering after a taste of the Good Life? You are not the only one. So-called lifestyle farmers - City traders and investors who use their wealth to pursue agriculture as a hobby - bought more arable and grazing land than career farmers last year. As a result, the price of farmland has shot up at its fastest rate for 30 years, bucking the downward trend dogging residential and commercial property values. During the first three months of this year alone, the average price paid for farmland rocketed by 10%, and arable land has jumped from £4,000 an acre in January 2007 to £5,500 an acre today, figures from estate agent Knight Frank show. Many property investors are therefore questioning whether they should trade in buy-to-let and commercial properties for agricultural land instead. Jeremy Zeid, an arable market specialist at estate agent Carter Jonas, said: “Both private and institutional investors are realising that while the values of their residential and commercial property investment have fallen over the last few months, agricultural land prices are on the up. I think this has led to an acknowledgement that it pays to have a mix of different types of property within your portfolio.” Those scared away from the stock market by the sub-prime lending debacle are also investing in farmland after seeing the impressive returns of the last year or so. Zeid said: “If anything, the credit crunch has strengthened the agricultural-property market - even though some of the City money has dried up as a result.
High-net worth individuals looking to find a new home for money they might have invested in stocks and shares before the credit crisis are not the only reason land values are soaring They are also being fuelled by food prices hitting an all-time high at a time when very little farmland is coming up for sale. The price of wheat and other cereals has more than doubled in the past 12 months. According to mortgage broker Savills Private Finance, the amount of land coming onto the public market each year has plummeted from about 600,000 acres in the 1960s to 125,000 acres today. Zeid added: “Supply is still fairly limited, although we do expect a bit more to come onto the market between now and Christmas. “What's more, the fact that farmers are now making reasonable profits due to high cereal prices means that many of them are desperate to get their hands on more arable land. We recently had seven buyers fighting over one arable plot in Lincolnshire.” You do not have to physically buy land to benefit from the farmland boom, though. Property firm Braemar is offering those who want to get a slice of the action without putting their wellies on the chance to invest in a UK farmland-investment company that qualifies for inheritance tax (IHT) relief. You must have at least £10,000 to invest in the company, which plans to list on one of the junior London markets this autumn. You can invest through a self-invested personal pension or offshore bond as well as in cash. As with AIM-listed companies, only those who hold the investment for two or more years will qualify for the IHT relief. Braemar chief executive Marc Duschenes said: “There has been a phenomenal amount of interest from investors. “Generally speaking they fall into three categories: older people who are using the investment as an inheritance tax planning tool, slightly younger people investing toward their pensions and younger, high-net worth individuals such as stockbrokers and sportsmen who recognise that this is a great way to diversify their portfolios.” Interested parties will be able to invest in the company within the next week or so. Duschenes said: “We have now raised enough money to buy two farms and we are currently assessing a shortlist of five properties. “We will be looking to raise more money between early May and the beginning of July, with an initial cap of £20m. There is only so much farmland around to buy, after all.” The farms on the shortlist are in Lincolnshire, Cambridgeshire and Hampshire and are purely arable. “The land will be used to grow cereals to take advantage of the current high wheat prices,” Duschenes said. The scheme is not suitable for those likely to need the cash back in the short term as it will be difficult to cash in your investment until the company goes public later this year. There is also the risk that price rises are unsustainable. Justin Urquhart Stewart of Seven Investment Management believes soft commodities such as wheat are overpriced. He said: “Food prices have ballooned in recent months and are now at record levels. I suspect that this is unjustified and prices will start to drop off later this year as a result.” However, bulls point out there is scope for UK land to rise further because it is some way behind other countries. Elsewhere in Europe, such as Denmark and Ireland, for example, arable land is already worth more than double that in Britain. Buyers from these countries are therefore heading over here to cash in on the boom. Duschenes said: “If you look at land values in those countries, you can see that prices here still have a long way to go, which is one reason we think we are only just at the beginning of a long-term bull run.” What are the tax rates? Actively farmed land potentially qualifies for 100% relief from death duty, which means it should fall out of your estate for IHT purposes. If you farm the land yourself you qualify for 100% relief on the land after two years. The same is true if you sign a contract with a farmer to do the work, as long as you share in the profits and losses. If you let the land to a farmer, you qualify after seven years. The farmhouse is a grey area in inheritance-tax terms. Land Tribunal judges have said farmhouses should be exempt only if the owners farm the land on a day-to-day basis.
This is Money - August 2nd 2006 Remote islands are new hotspotA TINY string of islands off West Africa is fast becoming the latest hotspot for jet-setting British property investors. Swathes of new developments are under way, with two-bedroom flats still two years from completion selling for £30,000 to £150,000 for seafront views. A couple of years ago they would have cost half that. The former Portuguese colony - independent since 1975 - is now offering foreign investors tax breaks to invest in the area. Apartment blocks are under construction in anticipation of a new wave of holidaymakers and would-be investors arriving when British airline Astareus starts flights from Manchester to Sal, home of the main international airport in the 10-island chain, later this year. The Irish have started to pour cash into the local market, with firms such as Cape Verde Development taking their projects to property fairs across Britain and Ireland. For years the islanders fled the archipelago in search of work, but now the 460,000 locals are hoping to cash in on the thirst of overseas investors for the once drought-ridden former slave trading post. There are already fears of massive over-development - such as happened in parts of the Canaries - if the construction rate continues. But Cape Verde property prices are still only a quarter of those in the Canaries. A glossy brochure doing the rounds with Irish estate agents offers three blocks of 40 flats in the Vila Maria complex on the main island. They will not be ready until 2008. However, European operator RIU Hotels and Resorts has just opened a five-star 500-bedroom hotel on Sal, while Turinvest, part of the Stefani Group, has three four star and one five star hotel on the islands. Downsides for investors and developers include water supply issues, volcanic activity and the occasional shark. Upsides include year-round sunshine and political stability, great beaches, clean seas and beautiful natural scenery. A similar rush on Bulgarian property began two years ago, urged on by the extension of budget airlines to the former Eastern Bloc country, and the Black Sea was tipped as the affordable 'new Mediterranean'. |
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With its self-contained villages, wooded landscapes and trademark glass domes, Center Parcs prides itself on offering affordable holidays for all the family. 
AFTER four years of initial planning and preliminary development, the multi-million dollar Merrick’s Resort located in St. Philip has finally broken ground.
HARLEQUIN HOTEL & RESORTS is seeking to redefine tourism in Barbados by establishing a US$400 million (BDS$800 milion) facility with soccer fields and tennis courts using Liverpool and Pat Cash as star appeal and partners. 
Between 1941 and 2002, average US farmland values outpaced the growth of inflation by 2%.
The founder and CEO of Landkom is a former RAF man turned entrepreneur, Richard Spinks.
Professor Tim Lang, one of the British government's leading food security advisers, is one such critic:
But it is difficult territory which brings up big questions, and it is a global trend - Arab countries are buying up huge swathes of Africa, the Chinese are in Cambodia, and so on.
The sales are still coming. At the island's Cotton Bay resort, for example, stage two of a building programme has just been completed, with 22 two-bed villas priced between $360,000 (around £260,000) and $450,000 all sold in rapid time. Some one-bed flats priced at $290,000 were also sold.
"Cash is King" and this has always benefited Barbados as the super rich enjoy this beautiful island - The West Coast of Barbados is well known for its celebrity and ultra wealthy visitors and homeowners such as Simon Cowell, Mick Jagger, Hugh Grant, David & Victoria Beckham, Wayne & Colleen Rooney, Princes William & Harry, The Blairs, Sir Cliff Richard, Jeremy Clarkson, Tom Cruise, Tiger Woods, Oprah Winfrey, George Clooney, Michael Schumacher, Amy Winehouse, The Rausing Family, Sir Philip Green, Michael Winner, David Frost, Madonna, Andrew Lloyd Webber, Lulu, Rihanna (born in Barbados), Sir Elton John, Richard Branson, Andrei Shevchenko, Sir Alex Ferguson, Roman Abramovich, Sting, Armani, The late Pavarotti……The list is simply endless as are the private jets lining the run ways…. Expedia voted Barbados as the number one destination in the world to spot a "celebrity". 
As opposed to timeshares – where you only get limited and designated visiting times and then hand the property back when your lease is up – with 'condo' or 'apart' hotels, you get to own the deeds, bricks and mortar, and have the full service of a regular hotel when you visit. And if you do start to feel the crunch, you can rent out your room, suite or villa when you're not there via the hotel management company.
Kokkari, a fishing village on the Greek island of Samos, is idyllic holiday-home territory, with its calm, turquoise sea flanked by a strip of waterfront bars leading to cobbled backstreets.
"Samos has a great climate, a welcoming atmosphere and rich culture, with incredible ancient ruins dotted around the island, and there are direct flights from the UK between May and October," says Robin Barrasford, managing director of the property agent and developer Barrasford & Bird. "But very few people know anyone who has bought a property in Greece, except for Crete, which is more relaxed in its enforcement of planning laws: for example, it allows some development on beachfront land, where other islands prohibit building within 50 metres of the shoreline.
Samos Properties has rustic houses with land from about £115,000, including a two-bedroom house in Heraion on the south coast for £250,000. It also has a traditional, two-storey, stone house in Agios Konstantinos, in need of renovation, for £170,000 and a beautifully renovated stone house in Kokkari for £310,000. A large house in Mitilini village, requiring a total overhaul, costs £25,000.
“Some people will have seen millions wiped off their stock-market investments, but those who have placed money into the agricultural sector will be delighted with their returns.”
House prices buoyed by November's introduction of direct charter flights from the UK to the Cape Verde islands - about an hour's plane hop south of the Canary Islands - have soared 18% this year.