Tortuga Beach Resort Property

West Coast , Sal Algodoeiro Bay near Vila Verde

Just south along the West Coast from Paradise Beach, Tortuga Beach is on a narrow strip leading back from the coast in the middle of Algodoeiro Bay as far as the boundary of the Vila Verde resort, which occupies a triangular plot from there to the Espargos-Santa Maria Highway.

It is being built by The Resort Group a company based in Gibraltar. Sales are handled through a British subsidiary based in Derby. The company was established by Robert Jarrett a financial adviser who has moved from Derby to Monaco. The Tortuga beach land is owned by a Cape Verdean Company in Praia.

Tortuga Beach is Spanish for turtle beach. It is a relatively small oblong plot with a short frontage onto Algodoeiro Beach. Apartments, a small hotel bungalows in the front line and villas have been buit. Resale prices for the villas are low as many owners are disappointed with the outcome. It has 12 4 bedroom bungalows on the beach line, with 40 two bedroom villas behind. There are also 306 two bed apartments.

Tortuga Beach will have two swimming pools and shared garden areas. Sol e Melia will operate an hotel and will pay an undetermined rent to private owners who sign an onerous 15 year contract. Service and maintenance charges have yet tio be disclosed. A restaurant and bar as well as a spa and gym, will be added eventually.The land purchase was delayed as the Developer intended to finance this by taking deposits from investors and only completed in April 2008 but approval has been given by Cabo Verde Investimentos and contracts to commence building were let in June 2008. Since then the first bungalows have been completed in a year - rapid indeed for the Cape Verdes.

Front rows subject to sea flooding during November storms

Progress continues rapidly and the site looks likely to complete in 2011. This is despite the fact that the front row villas were flooded during high seas caused by autumn storms. It is built very close to the sea and the first four lines of houses were flooded during the November 2009 storms and again in December. The developer rushed in heavy equipment in an effort to build sand barriers to divert the waves.

Some purchasers are putting pension savings from SIPPs into these properties lured by prospects of a 9.75% return and 65% occupancy on the property. This seems optimistic in current conditions.

The site will be managed by the Spanish hotel group Sol e Melia. Whilst they are certainly more competent than most development managers in Cape Verde, they are likely to take a large cut of the proposed gross returns. They have already asked owners to invest more in the properties before they will accept them as part of the hotel complex and are offering take it or leave it 15 year contracts with only 5 weeks available to owners. The furniture supplied is typical hotel stock and kitchens, refrigerators and air conditionsers are small for family use.

"I visited Sal and I still have a deposit on a 2 bed apartment on Paradise Beach at €120,000 (of which I am still undecided in pursuing). The same size apartment on Tortuga Beach (86 sqm) is €183,000 virtually next door to Paradise Beach. I would like to understand what is so great about this development and where future gains lie with such uncertainty regarding growth, resale and rentals."

T from London has other worries

"As far as I am aware Tortuga does not have planning, although I suspect this has been applied for but not yet approved, as is the case with Dunas. Both are 'planned' by the same developer - Worldwide Property Portfolio. This brings me back to my original concern. This developer is trying to lure people into paying deposits by offering discounts if they pay their hefty deposit within 12 weeks. When you sign the reservation form they don't tell you (and neither does the Agent) that they don't have planning permision and don't even own the land....and then when you find this out, you can't back out without losing your £4000 (or £6000 in the case of a villa! )

They also try to lure you in by offering free legal fees, which is pretty useless if the same solicitor also acts for the developer because this obviously creates a conflict of interests. In addition they offer 'incentives' like free air conditioning and free furniture but all this really means is that you need to 'risk' paying more money up front to get these 'freebies'......and guess what if you change your mind and decide that you want to do without the freebies and pay less up front....well, tough they'll tell you that you can't change your mind and that you have to stick with the decision that you made on your reservation form!! Vila Verde looks like a good decision....and even better for you if Tortuga doesn't get planning permission but very sad for all the people that will have paid deposits on Tortuga Beach. To be honest it isn't all bleak. There's a clause in the contract that says that if they don't own the land or having planning permssion within 3 years then I can have a refund.....BUT, how much interest will I have lost on £38,000 in 3 years?"

R from London is dismayed at extra charges

"We have purchased two 2 bed apartments on Tortuga and one single bed apartment on Dunas. We have only recently been made aware that there would be an extra €17,000 charge to upgrade to the hotels "excellence" package in order that we can let the apartments through the hotel. We are very, very shocked and annoyed about this as at no point were we made aware, at time of purchase, that we would need to spend this very large amount of money on top of what we already have. We were infact told that the first "quality" furniture package was all that was needed to have the hotel let the properties. "

W from Devon does not like the letting contract

"I am purchasing on Tortuga and due to complete soon but the contracts I have just been sent are so onerous and one sided . There is total control by the Resort Group if I sign the management contract. The hotel rental contract is also one sided and too long ."

Worldwide Property Portfolio was dissolved on July 4 2006