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Cotton Bay resort with private golf courseAlgodoeiro Bay, Sal West Coast, Cape VerdeCotton Bay formerly known as Algodoeiro BayGianninno Mariani, known as Gianni Mariani, the lead developer of the Porto Antigo syndicate of Italian businessmen, has taken on a very large plot at Algodoeiro Bay which he has translated into English as Cotton Bay. Originally he wanted to buy only half the Cotton Bay area. But the Government in Praia said that it was all or nothing. Jorge Spencer Lima, who has influence in the PAICV then took away the best corner of Cotton Bay to make Paradise Beach. But there is still much more land here stretching from the Espargos-Santa Maria highway right down to 50m from the sea.. The Cotton Bay plots are much bigger than usual - up to 542sqm. Bungalows and villas will be established with their own terrace or garden area and a small individual swimming pool. Cotton Bay villa prices reflect this and range from £366,000 to a mere half million pounds. Studios and apartments start at £100,000- £140,000, the price of villas elsewhere. So far little has been built at Cotton Bay except for a wire fence and a few billboards but there is an established nusery along the Highway producing plants and even signs of some trial grass being grown. It is of a very coarse type possibly related to couch with very thick roots, so let us hope that it flourishes in the sandy, salty soil. A JCB back hoe loader was recently spotted on site, probably preparing a drainage ditch. Cotton Bay has a Golf Course project . What must be a concern is that usage of all 36 holes will be restricted to owners. So presumably these will have to stand the costs of maintenance, including daily watering, which could be extremely expensive. There is also a proposed marina with 300 berths which will be completed before the golf course. Cotton Bay berth prices are higher than at Antibes. There is also mention of a Casino and a football pitch. There is ample space for several on the Cotton Bay estate, which is now savannah scrubland. Obviously all of this will be dependent upon whether enough investors buy at these prices. Also whether the newly elected Mayor of Sal, Jorge Figuereido who defeated the Italian developers` candidate will approve.. He has already rejected a marina in Murdeira Bay. Mariani and his business associates, part of the Brescia group of businessmen who came to Cape Verde a decade ago has managed to sell Porto Antigo flats at very high prices. So maybe he will do it again at Cotton Bay. The company promises to run a letting scheme but will rents ever compensate for the prices? Project officialy reported to be on holdM from Tyneside is optimistic. "We have bought two apartments in Cotton Bay, a one-bedder for £92,000 and a two-bedroom flat for £140,000, both of which we want to let. We were drawn by the fact that it is an emerging market and it has year-round sunshine. Cape Verde is at the right stage of development to make the most of off-plan opportunities and Cotton Bay looks like being the best resort on the island."M from London is a professional investor but has qualms. "In a frenzy of excitement I reserved a one bed apartment at Cotton Bay on a free inspection trip in November 2007 for€141,000 . It is a first floor apartment. I paid €3000, but finally received the contract via email asking for the first payment of €53,400. I’ve been quite a risk taker in the past, but it suddenly dawned on me that this is an awful lot of money to tie up (with no possible income return for years), especially with current exchange rates, with more stage payments to make in the future and I’ve started to wonder if I am making the right decision and ask some serious questions. The following are some of my main concerns:. What sort of rental yield / return might I expect? Given the vast size of this and other competing developments on Sal might perhaps many apartments remain empty for a lot of the year, whilst the ones that are occupied will have to accept a lower rent due to the huge supply ? I am not personally able to spend more than a week or two there. Even if the tourist demand becomes phenomenal, will there be enough flights to Sal to fill up all the developments? Developers and their agents like to keep increasing asking prices so that investors can feel they are getting a bargain, But when the apartments are finished and the hype subsides, surely the value will be dependent on the actual return that apartment is getting? Should I decide not to go ahead with it, does anyone know what chance I would have of getting my reservation fee refunded."I from Sussex was optimistic about time-scales, which have already been missed. "You can reserve now for €5000 blocks at the front of the first phase. There will be villas in front of them but the position looks superb. Costs of one bed apartments are €120,000 to€144,000. , I anticipate prices will increase (or at least I hope so!. I was not aware of this development before I went over there and was really excited by it. Time will tell.They say they will start foundations of first phase September 2007 with completion 2 years later. The first phase also comprises the marina - but not the golf course. All phases will take about 7 years to complete"M from London expects new contracts from Mariani "I am aware we will be spoken to regarding a change in contract. The deadline is some time in October. If I am to change the contract the price must be considerably dropped. No golf. No marina. No sports centre. Casino? All these will not be sorted within 5 years at best, that's my opinion. I've ended up buying on Vila Verde just so I have somewhere to stay, after all, I should be in my apartment now ?"B from Sussex is concerned about the future of the project "The Marianis are trying to salvage what they can starting with face. After all they have been on the island for some time and are well known .There is nothing apparently the CV solicitors can do until there is a clear breach. What I am concerned of is that they build to roof level as much as they can then trigger a second payment without meaning to finish. Anyone not willing to pay the second payment would then be in breach and therefore would lose their money irrespective. There could be very little left of initial deposits paid by the clients sometimes 2 years ago.The Marianis have not been open with investors nor have they any intention of so doing "officially" until they have put all their ducks in a row. "Planned completion date has passed without any building started |