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Project outline
The location is the stunning Boracay Island in the Philippines. The project is to create an up-market 120 unit Filipino apartment and villa development on the beachfront of the secluded Puka Beach; the quieter part of Boracay. The site is within the protected 80 hectare Boracay Eco-Village in a forested portion of the estate. Shangri-la’s well publicised resort is located very close by.
Why should I consider financing a project in Boracay Island?
The shortage of accommodation on Boracay Island has been well publicised with the average waiting time for a hotel room approximately 6 months. Land prices have quadrupled in two years and rental yields are over the 12% mark. With the island only 8km long and demand increasing, particularly from the Korean, Australasian and Scandinavian markets, there is a strong investment case for a well packaged and original beachfront development on the island with healthy and viable returns.
What's the deal?
The developer is after a capital injection of £2m to build 3 blocks of 30 beachfront apartments and 2 clusters of 10 2 bed and 3 bed villas in return for a fixed 40% return over 18 months, either in stages in line with off-plan payments or in one payment upon exit. All units will have sea views and other features include an infinity pool and a small casino area. This will be the 3rd project for the joint British and Filipino developers, who have existing relationships with Korean travel companies who block book units for their clientele all year round. This will allow the developer to offer an extremely attractive long term guaranteed rental package to off-plan investors. The attractiveness of this project to off-plan investors should ensure that the financier is able to exit his/her position with ease.
Established UK lawyers with over 20 years overseas property experience are currently working on this deal. Escrow accounts within the UK will be provided both for the equity investor and the off-plan purchasers. The Land is titled which is a rarity in the Philippines. Planning permission is yet to be granted, but purchase is from the island’s largest and most influential landowner and is not considered an issue. In any case the funds will be safely secured within escrow and returned should planning not be permitted.
If this project is of considerable interest, investors will need to meet with the developer's UK representative before travelling to the Philippines to view the site and meet the partners.
To summarise:
• Up to £2m required to finance UK/Filipino developer's third project on the island
• Fixed 40% return within 18 months - potential for returns to be staggered in line with off-plan payment schedule
• Established UK overseas property lawyers being used with 20 years experience
• Funds to be placed in UK escrow accounts to ensure security of funds
• Titled Filipino land
• Strong exit strategy: previous project have sold well
• Agreement in place to rent out units on a guaranteed basis with a Korean travel agency
• Serious investors will be required to travel to the Philippines to view the site and meet the partners
• Meetings available in the UK & the Philippines
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