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LAKESIDE ESTATE

LITTLE CAYMAN
Introduction

Bathed in the sparkling, turquoise waters of the Caribbean Sea lies a unique offshore
banking haven that boasts a idyllic combination of British common law, tax privacy &
freedom, and an enviable tropical marine climate.

The Cayman Islands foster one of the wealthiest and most privileged populations in
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on earth.

They remain an ultra-elite island destination with the 10th highest valued currency
in the world, their own stock exchange, the absence of direct taxation and a well
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The Cayman Islands offer a realistic and durable real estate investment strategy.

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1.0 The Investment Argument 7KH\DUHKRPHWREDQNV DVRI-XQH FRQGXFWLQJEDQNLQJDFWLYLWLHVDWERWK
domestic and international levels.

The most prominent sectors are banking, hedge fund formation & investment, structured
1.1 Property Market Overview ¿QDQFH VHFXULWL]DWLRQFDSWLYHLQVXUDQFHDQGJHQHUDOFRUSRUDWHDFWLYLWLHV

Although Cayman’s economy is based primarily on the twin pillars of the territory’s
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a key economic generator and a spin off from the tourism sector. 1.4 Political Stability

There are no legal restrictions of any kind to foreign ownership of property in Cayman, The success of the Cayman Islands originates from a long-standing stable government,
which makes it very attractive to overseas investors. A real estate title can be held operating British common law.
in one name, a group of people or by a company or corporation. Title to property is
granted and guaranteed by the Cayman Islands Government protecting ownership. The Caymans have cultivated a robust platform to foster continued successful economic
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These attractive factors, in addition to no annual property tax, no inheritance tax, skilled personnel.
political stability, favorable landlord and tenancy rules, a beautiful natural environment
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property market.
1.5 Commitment from the Government

The Cayman Administration have committed to bolstering long term growth of economic
1.2 Tourism-fuelled Economy output with continued investment in infrastructural enhancements.

The territory has enjoyed stable economic prosperity for many years, with steady 7KHLUHQGHDYRUVWRSURPRWHWKHLQWHUQDWLRQDOVLJQL¿FDQFHRIWKHLVODQGLVGHPRQVWUDWHG 5
GDP growth being fuelled by luxury tourism, attracted to the clean, friendly and safe by their current airport expansion program, in which terminal capacity will be tripled.
ambiance of all three islands. This will support the addition of new air routes into the islands from north-eastern
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The Tourism industry is responsible for more than 70% of Caymans’ GDP. This is markets for US visitors.
fuelled by the islands vast unspoiled beaches, duty-free shopping, SCUBA diving and
GHHSVHD ¿VKLQJ ZKLFK DWWUDFWHG ¿JXUHV LQ WKH UHJLRQ RI  PLOOLRQ DLU DQG FUXLVH Further initiatives aimed at boosting stay-over arrivals include a new promotional
YLVLWRUVLQDORQH campaign by the Department of Tourism to target secondary markets such as Canada
and the UK under the slogan of ‘Three islands, one idyllic destination’.
Its crystal-clear waters and unspoiled reefs make the Caymans one of the world’s most
revered SCUBA diving destinations, with Little Cayman being listed as one of the best 7KHJRYHUQPHQWKDVDOVRHVWDEOLVKHGWKH&D\PDQ,VODQG,QYHVWPHQW%XUHDX &,,% 
diving sites in the world. the territory’s dedicated investment promotion agency with a mandate to facilitate and
stimulate long term investments in all sectors of the economy.
The Cayman Islands are also the world leader in the registration of mega-yachts, and
a major player in the registration of other vessels, thus underlying its proven capability
to compete on an international level.
1.6 Population Growth

With a current population of 57,000 residents, the CIA World Factbook lists the
1.3 Financial Services Industry Cayman Islands as the 34th fastest growing population in the world at 2.39% per
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7KH&D\PDQ,VODQGVLVWKH¿IWKODUJHVWEDQNLQJFHQWUHLQWKHZRUOGZLWKWULOOLRQLQ a greater level of growth of 3.5% against the same period in 2007. Comparatively, the
banking liabilities and a concentration of top-quality service providers such as UBS UAE is the highest at 3.69%, whilst the UK is listed at number 175 with a growth rate
and Goldman Sachs. RISHU\HDU
1.7 Construction and Real Estate

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representing a 12.5% increase on the previous year. Furthermore, despite a global
decline, the number of transferred freehold properties rose by 4.5% in this year, to a
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1.8 Tax Residency

High-net-worth investors are encouraged to invest in the Cayman islands, with a view
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this may present. Application for residency is available via two different channels,
either as Wealthy Retirees or Entrepreneur/Investors.

1.9 Summary

With the 10th most valued currency in the world, the highest standard of living in
the Caribbean, its own stock exchange, no direct taxation and a distinguished
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investments.

‡ No local taxes - there is no income tax, no inheritance tax, no non-residents tax,


capital gains or other similar taxes in the Cayman Islands

‡ Stability and Security - the Cayman Islands has a stable government, sophisticated
infrastructure and a strong economy based on international banking and tourism

‡ Privacy - no reporting of income or ownership to any government agency

‡ Investment freedom - no restrictions on investment purchases

‡ Comprehensive investment services and opportunities

‡ Increasing population growth and commitment to securing increased tourism


revenue
2.0 Investment Options

2.1 Introduction

In the face of current global market conditions, the average number of Cayman Land
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A viable, and potentially lucrative opportunity to purchase freehold plots of land issued
with planning consent for residential development is now available to investors.

These building plots will be delivered with communication and utility infrastructure in
place, including roads and electricity, giving owners the opportunity to develop their
own bespoke luxury villas.

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their investment at a later date.

2.2 Developing your plot

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personal use, rental returns or simply to sell on completion.

A choice of Architects, Surveyors, Engineering and Project Management services, and


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facilitate a straightforward and bespoke service.

2.3 Realizing your investment

As populations grow, the challenge of balancing the increasing need for housing with
the growing importance of environmental and heritage concerns means that land
with development or building potential can provide increasingly strong returns for
investors.

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of the price increase that will be associated with the completion of infrastructure
components.

The second, longer term scenario will harness the combined increases in value
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value.
3.0 Developing your Plot $PD[LPXPSHUPLVVDEOHEXLOWDUHDRIFDQEHDFKHLYHGRYHUÀRRUV

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3.1 Land purchasing costs The budget for architectural, engineering and project management services should be
based on 10% of the construction costs.
There is no direct form of taxation levied within the Islands, aside from a one off “Stamp
Duty” on real estate, at time of purchase. Allow 2 - 3% for miscellaneous costs.

Stamp Duty is charged at 7.5% on Grand Cayman and 6% on Little Cayman and
Cayman Brac.

3.2 Project Services

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DDL Studio Ltd.

Based upon your requirements and objectives, the following scope of services are
available:

‡ Design of bespoke individual villas and facilities.


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‡ Design development leading to planning application.

‡ Preparation of renderings and plans suitable for marketing purposes.

‡ Constriction documentation including all structural, mechanical, electrical and


plumbing design.

‡ Building permit application.

‡ Preparation of bills of quantities / schedule of rates for the proposed works.

‡ Tender procedure.

‡ General contract documentation.

‡ Contract administration / project management.

3.2 Projected land development costs example

All building plots will have planning consent to construct a detached villa over 2 storeys.
Each story is allocated a built area covering 25% of the total plot square footage.
4.0 Purchasing Structure 4.3 Due diligence

All relevant due diligence has been carried out on each building plot by one of the
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4.1 Payment Plan Options available upon request.

Each parcel of land is purchasable under the following terms:

‡ 5HVHUYDWLRQGHSRVLW86SDLGXSRQVLJQLQJRIWKH5HVHUYDWLRQ$JUHHPHQW 4.4 Transferability

‡ First Payment: 30% of purchase price within 7 days of reservation Before title deeds are issued

‡ Remaining balance can be paid, interest free, as below: Investors have the option of selling their contract for the freehold plot of land at any
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Option 1: Payable quaterly over 1 year

Option 2: Payable quaterly over 2 years


On receipt of title deeds
Option 3: Payable quaterly over 3 years
There are no legal encumbrances to prevent title deeds being reassigned.

All land in the Cayman Islands is recorded in a single registry. The land registry is
4.2 Purchase Procedure
maintained by the government which effectively guarantees title.
1. Reservation Agreement completed, signed and returned by fax or email
There are no time limits to development and planning permission will not expire. Plots
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2. Deposit paid via credit card as an asset can be willed and inherited.

3. Plot taken off the market

4. Original copy of signed Reservation Agreement expedited by registered post,


along with copies of required supporting documents

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6. Purchase & Sale Agreement prepared by land owner and couriered to buyer

7. Buyer receives and completes Purchase & Sale Agreement

 First Payment sent via bank transfer

9. Signed Purchase & Sale Agreement expedited by registered post by buyer

10. Title deeds issued once 100% purchase costs have been received by land
owner
A 5.0 Background Information 5.4 Travel

Several airlines serve the Islands, which are just over one hour south of Miami. These
include the national airline Cayman Airways, American Airlines, USAIR, Northwest,
5.1 Location Delta, Continental, Air Canada, British Airways, and Air Jamaica.
B
A The Cayman Islands comprise of Grand Cayman, Cayman Brac, and Little Cayman. The national carrier serves Miami, Houston, Tampa, Orlando, Fort Lauderdale, Boston,
They lie south of Cuba and north west of Jamaica, timezone GMT -5. Chicago; Kingston and Montego Bay, Jamaica; Havana, Cuba; and Cayman Brac and
Little Cayman. Direct links with other US gateways such as Atlanta, New York and
Grand Cayman is by far the biggest with an area of 76 square miles. The two “Sister
Charlotte are provided by the US carriers serving the Islands.
Islands” of Cayman Brac and Little Cayman are located about 80 miles east of Grand
Cayman and have areas of 14 square miles and 10 square miles respectively. 5HJXODUGLUHFWVFKHGXOHGÀLJKWVGHSDUWLQJIURP/RQGRQ+HDWKURZWR*UDQG&D\PDQ¶V
Robert Owen International Airport are available with British Airways.
All three islands are surrounded by healthy coral reefs, which lie at the top of dramatic
walls and drop-off’s close to shore, creating ideal conditions for diving and sport
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5.5 Climate

The Cayman Islands boast an exotic, tropical climate throughout the year, with trade
5.2 History winds moderating high temperatures which range from 25oC in winter to approximately
Location The Sister Islands
30oC in summer. High season runs from December to April where temperatures are
Christopher Columbus discovered the Caymans in 1503. They remained uninhabited
0 50 Miles generally cooler and more favorable for tourism. The rainy season is typically from May
until well after the 1670 acquisition of the islands by the British Crown, which has held
to October with short burst showers
Lakeside Estate dominion over the three islands ever since.
B Little Cayman 15
Strict building codes are in place to withstand hurricanes. The government has
Its superior diving conditions put the Cayman Islands on the international tourist map in
appropriate measures in place to prepare for such conditions and offers a hurricane
the early 1950s. Despite its diminutive size, Little Cayman quickly established itself as
protection policy guarantee in order to maintain tourism growth.
Cayman Brac a top diving site. Bloody Bay Marine Park has some of the best wall diving anywhere
in the world.

During the next decade, Caymanians began to draw up the tax structure that would
make Grand Cayman an economic powerhouse and at the same time put in place an
infrastructure that has made it the undisputed capital of Caribbean tourism.

5.3 Money

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87,000 companies were registered in the Cayman Islands as of 2008, including almost
300 banks, 800 insurers, and 5,000 mutual funds. A stock exchange was opened in
1997.The Cayman Islands have more registered businesses than they have people.

George With an average income of around $42,000, Caymanians enjoy the highest standard of
Town
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0 5 Miles to US$1 (US$1 equals CI$1.25).
Grand Cayman
6.0 Project Location

6.1 Little Cayman

Little Cayman is the smallest of The Cayman Islands - 10 miles long by 1 mile wide.
It is the least developed Cayman island and with approximately 170 very wealthy
inhabitants.

Little Cayman is truly an untouched tropical paradise with sparkling beaches and sun
drenched seclusion. Selective, small-scale tourism and related services, combined
with a high measure of natural conservation in keeping with the islands sensitive and
unique environmental characteristics and the fact it is so small and exclusive means
that it really is like owning a piece of your own private island. Plots on Little Cayman
are thus consistently in short supply and in very high demand.

6.2 Lakeside Estate

Lakeside Estate offers that rare combination of sun-blessed solitude, glistening


beaches and miles of untouched tropical wilderness. Here, shy iguanas and rare birds
outnumber humans.
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This site has some great views of one of the few lakes on the Island. Also it is only a
few hundred yards from Sandy point Beach, which is recognised as the best beach in
the area or you can row out to tiny, deserted Owen Island to enjoy a view of nature in
its most pristine form. Here, you can truly ease the body and soul.
7.0 Advisors

Maples and Calder - International Law Firm


PO Box 309, Ugland House
South Church Street, George Town
Grand Cayman KY1-1104

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Redmount Trust Group Limited - Wealth Management and Offshore Specialists


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Library Street
Gibraltar

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DDL Studio Ltd - Architecture and Project Management Services
32%R[
Seven Mile Beach
Grand Cayman
KY1-1206

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Fax: +1 345 945 3623 www.ddlstudio.com

Cayman Islands Government - Planning Department


Leeward One Building
5HJDWWD2I¿FH3DUN
West Bay Road, George Town
Grand Cayman

Tel: +1 345 769 7526 www.planning.gov.ky