What are the investment options for purchasing real estate at Kimpton Kawana Bay?
There are three property types now on offer in Phases 2 and 3, which are as follows: 1. Single Title Studios (full ownership) in the Phase 2 Matura building at the beachfront priced from USD 425,000. 2. Dual Title Studios (half ownership) in the Phase 3 Kiawah building priced at USD 350,000. 3. Multi Title Suites and Studios (multi ownership) in the Phase 3 Kiawah building and Phase 4 Rekawa building priced from USD 220,000.
What happens with funds already paid, if the Grenadian Government does not approve the purchaser’s application for citizenship?
Unless a purchaser is buying the property for investment purposes without citizenship, a purchaser may only take title to the property if the Government of Grenada has approved their citizenship application. If the purchaser’s application for citizenship is denied by the Government of Grenada, the purchaser will be entitled to terminate the Purchase and Sale Agreement and will have no obligation to pay the balance of the purchase price. The processing/reservation fee paid by the purchaser will not be refunded. In addition, all government and other fees already paid by the purchaser are non-refundable.
Are there any annual charges which purchasers will need to pay out of pocket?
No, annual assessments (including property tax and insurance) will be paid out of the purchaser’s share in the rental management programme after the hotel opens; no assessments will be levied before such time. Thereafter, any shortfall is paid by the rental manager and recouped, plus interest, from subsequent rental programme revenue attributable to the purchaser.
Are there any other fees (aside from the purchase price) that the purchaser needs to prepare for?
In addition to the purchase price for the property, other costs include the government CBI fees, professional fees and legal conveyancing costs. The total cost will vary depending on the number of dependents, and their ages, in any one CBI application. On an investment of USD 220,000 for a family of four (main applicant plus three dependents – spouse, one minor child and one dependent child over 17 years of age), the total will be just over USD 300,000. This does not include professional fees which are generally negotiable and can vary depending on the service provider.
How long is a purchaser required to maintain ownership of their property to keep Grenadian citizenship and qualify for the resale provisions in the CBI legislation?
Will a second purchaser qualify to apply for citizenship in Grenada when a property is sold?
Yes, secondary purchasers of properties in the Kimpton Kawana Bay development will qualify to apply for citizenship under Grenada’s CBI programme, provided the first purchaser does not sell the property before five years from the grant of their citizenship. This benefit is only available to purchasers of “real estate”. Properties at Kimpton Kawana Bay are considered “real estate” and thus, are eligible. This means that if a purchaser holds their property for at least five years from the grant of citizenship, they can sell to a secondary purchaser who can also obtain Grenadian citizenship. Note that the five-year hold requirement and the resale provisions only apply to CBI applications submitted after May 23rd, 2019.
What is the expected annual return? Is there a guaranteed rate of return?
There is no guaranteed return for Kimpton Kawana Bay purchasers. Many of the projects in the Caribbean who have promised guaranteed returns, have defaulted on paying those guaranteed returns. Rather a prospective purchaser should take comfort from the alignment of interest between the developer and the purchaser, as only the successful operations of the hotel will result in a profit for the developer and a good return for the purchaser. Prospective purchasers may use the worksheet, available on request, to arrive at a rate of return that purchasers are likely to earn once the hotel is operational.
Will all properties be in the same rental management programme?
Yes, all the properties at Kimpton Kawana Bay will be in the same mandatory rental management programme.
When will purchasers receive payment from the Kimpton Kawana Bay rental management programme?
Rental distributions will be paid within 60 days after June 30th and December 31st in each year, so at the latest payments will be made by August 29th and March 1st in each year.
How many days can a purchaser use the property for themselves and their immediate family?
Single Title Studios – The purchaser gets use of a studio, in the same category, but not necessarily the studio purchaser’s own studio, for up to 14 nights each calendar year, of which seven nights may be reserved for use during the high season from December 1st to April 30th. Note, a maximum of 20% of all the properties in the resort will be available for purchasers during the peak period from December 15th to January 15th on a first-come, first-served basis. During the low season, May 1st until November 30th up to 14 consecutive nights can be booked. Dual Title Studios – After the five-year leaseback has ended, the purchaser gets use of a studio in the same category, but not necessarily the studio purchaser’s own studio, for up to seven nights each calendar year. Note, a maximum of 20% of all the properties in the resort will be available during the peak period from December 15th to January 15th on a first-come, first-served basis. Multi Title Suites and Studios - The purchaser can choose either: (i) One-time use of a suite for up to seven nights of continuous occupancy within four years of the purchaser’s building commencing hotel operations. Occupancy may only occur during the months of May, June, July, September or October, and will be subject to availability and will be considered on a first-come, first-served basis. (ii) One-time use of a studio for up to 14 nights of continuous occupancy within four years of the purchaser’s building commencing hotel operations. Occupancy may only occur during the months of May, June, July, September or October, and will be subject to availability and will be considered on a first-come, first-served basis.
For Multi Title Suites and Studios, is there a time limitation to use the one-time free occupancy allowance?
Yes, the one-time free occupancy allowance must be completed within four years of the opening of the building (in which the purchaser bought their property) to paying hotel guests.
Who is the developer of Kimpton Kawana Bay?
The developer of Kimpton Kawana Bay is True Blue Development Limited, an affiliate of the Tau Capital Group of Companies. Tau Capital specializes in development projects internationally and has a successful track record across numerous industries spanning 20 years.
Who is the Escrow Agent that the deposit will be paid to? What qualifications do they hold in this regard?
The Escrow Agent is also a Local Agent (responsible for submitting the purchasers’ citizenship applications) and is licensed by the Government of Grenada in this respect. All Escrow Agents used for the Kimpton Kawana Bay development are also qualified attorneys-at-law in Grenada. The Escrow Agent/Local Agent can provide copies of their relevant licenses/certificates.
I don’t know the Kimpton brand, is it international?
Kimpton Hotels & Restaurants is an internationally recognised hotel operator and upmarket boutique brand, which is part of the InterContinental Hotels Group. Kimpton began solely with hotels in the United States and has more recently expanded internationally with hotels in Amsterdam, London, Taipei and the Cayman Islands. Kimpton’s worldwide expansion is continuing with hotels under development in Hong Kong, Shanghai, Tokyo, Bangkok and Paris, to name a few.
Is citizenship in Grenada passed on to future generations?
In Grenada, citizenship can be passed on from generation to generation. The main applicant upon acquiring citizenship can apply for citizenship for any minor child. In future, the main applicant’s child who has been granted citizenship can apply for their minor children (i.e. the main applicant’s grandchild to become a Grenadian citizen), and so on for generations to come.
How many countries can a Grenadian citizen travel to without a need for a visa?
As of July 2019, Grenadian citizens have visa-free or visa-on-arrival access to over 140 countries. Uniquely, Grenada has the benefit of visa-free travel to both China and Russia. The list is evolving as Grenada continues to forge new/strengthened diplomatic relations.