200 Units High End Rental Apartment Condos in Trinidad and Tobago

Opportunity Snapshot

  • Country: Trinidad and Tobago Trinidad and Tobago
  • Industry: Real Estate
  • Stage: Start-up
  • Investment size: $35,000,000 / min. $500,000
  • ROI: 10% in 2 years
  • Type of investment: Debt, Equity
Residentiola Condo Development Project The Project is expected to be completed within 4 years and aims to develop rental condo apartment targeted at young professionals and high income residents. Image courtesy: Waferboard 2013, Flickr CC.

Investment Opportunity

The opportunity is to develop a new 8 x 25 apartment condo unit (200 units) in a gated community in Trinidad and Tobago (Caribbean region).

Executive Summary

SSL is a newly formed S-Corporation involved in various aspects of the construction and rental industry. SSL is based in Ridgefield, Washington USA with a proposed development in the most developed island in the Caribbean, namely Trinidad and Tobago.

SSL is an enterprise that will be providing clean, well-cared for high-quality residential rental condo apartments to well qualified tenants. Neither the locations nor the tenants are selected on a hasty basis, but rather through a purposeful, planned and methodical approach. The property selection process is rigorous and based on long term investment standards and tenants are personally evaluated by the property manager. SSL believes the key to successful property management is to be committed for the long term in both the property and tenant selection process.

SSL will be engaged in the residential real estate investment and management business and will act as the Acquisition & Restoration Manager, Property Manager, and Portfolio Asset Manager. The company’s focus will be to create a portfolio of income producing real estate assets over the next 10-15 years that will produce a very healthy return for investors.

Initially, SSL will seek to purchase residential real estate’s properties that have the potential to generate a reasonable return on investment. A conservative approach will be taken by investing and constructing eight high end properties initially with each property housing 25 apartment condos.

Project Background

The proposed Country is an island at the “heart” of the Americas and serves as a gateway to Latin America, the United States and Canada. It comprises the two most southerly isles of the Caribbean Archipelago. The island is a former British colony, which gained independence on August 31, 1962 and later became a republic on August 1, 1976.

The Country is also home to a population of 1.3 million people and an economy that is the most diversified in the English-speaking Caribbean. The Country is quite advanced in industrialization and is seen today as the industrial and commercial capital of the Caribbean. The Country has traditionally been an important oil and gas- producing country. It is currently the largest supplier of Liquefied Natural Gas (LNG) to the United States.

The country’s hydrocarbon resources and, in particular, its natural gas, of which approximately 3.9 billion cubic feet per day are produced (Dec 2011), and oil production averaging 91,919 barrels per day (2011), have enabled the island to become the most industrialized Caribbean nation.

Economic growth has been driven primarily by the petroleum sector, which rose by 2.0% in 2010. The island is classified as a high-income country in the World Development Report of the World Bank. The country’s economy is expected to grow by 1.5% in 2014. Standard and Poor’s Rating Services adjusted its Domestic Rating for the island from “Stable” in 2009, to a “Positive A.” The country’s foreign rating maintained a “Flat A” in 2011.

The crisis and its impact

In 2013, there was strong indication that the Country economy was emerging from the dark shadow of the global recession as GDP growth was slowly building momentum across a widening range of economic sectors.

For the first quarter of 2013 the economy grew by 1.7 per cent. This was based on the indication that the energy sector grew by 0.5 per cent.

Rationale for the deal

The main rationale for the project is the huge gap between supply and demand. Having been a resident myself for over 16 years, my experience has shown that it is a very profitable industry as over 25% of people are in need of accommodation. The project provides a safe and long term investment opportunity, with definite exit options.

Use of financing

The funds will be used for development of the project - design, construction, project management and working capital during initial years.

Investors have options to invest in Equity or Debt.

The construction period is expected to be in 2 phases of 2 years each total 4 yrs.

The terms, interest rates and loan covenants are to be determined during negotiations.

The Company requires financing of approximately US$35 million over the next 2 years to fund its operations.

The overall construction cost is estimated at US$30million over the next two (2) years, which excludes the land cost of US$5.0 million.

The Project is expected to be profitable over the investment period, reporting a projected Profit after Tax of US$2.3 million in year 3, US$4.7 million in year 4 and US$5.8 million in year 5.

We would advise a potential investor to establish a Caribbean offshore bank account, and we will transfer your income into the account on a quarterly basis.

Annual Percentage return:
Year 2 - 10%
Year 3 - 11.8%
Year 4 - 14.1%
Year 5 - 17.2%
Year 6 - 20%

The above show the anticipated return on investment, we expect the investment will be recouped over a 6 year time frame.

Opportunity for the investor

The opportunity is to develop a new eight - 25 apartment condo unit (200 units) in a gated community in Trinidad and Tobago (Caribbean) where accommodation is a much needed commodity.

The Project is expected to be completed within four (4) years and aims to develop rental condo apartment targeted at young professionals and high income residents.

Swift Solutions have in place a team of real estate professionals with a combined work experience of more than 30 years. They have developed an enviable reputation for excellence in property designs, quality and reliability, and impeccable finishing, making it an important player in property development.

The advantage for the investors unlike other investments, where you usually deal with money or paper instruments only, here you have a real estate property and structure, meaning that your investment is already secured by the assets. The exit strategy is within 6 yrs. At any time the investor can request a progress report on the project.

The Investor will get a good ratio on their investment with 25% payback within 36 months, the investment schedule can be of 3 instalments.

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