Kimpton Kawana Bay13th Nov 2019
Grenada's leading CBI Project
Kawana Bay is ideally located on Grand Anse Beach, voted by Condé Nast Traveller as one of the world’s best beaches. Kimpton Kawana Bay is a new 5-star luxury resort in Grenada.
Operated by an internationally recognised hotel brand – Kimpton Hotels & Restaurants, part of the InterContinental Hotels Group (the largest hotel group in the world). Suites and studios are for sale as Single Title, Dual Title and Multi Title freehold deeded real estate from US$220,000.
Kimpton Kawana Bay is good potential for rental income through the operator’s transparent hotel rental management programme and personal usage of up to 2 weeks each year.
Hassle-free ownership with no annual out of pocket fees
The hotel will feature an infinity edge pool overlooking Grand Anse Beach, state-of-the-art gym and spa facilities, exquisite fine dining restaurant, roof-top bar, beach bar, lounge with terrace, and water sports facilities.
Grenada is located at the southern end of the Caribbean chain of Islands known as the Windward Islands.
- Idyllic climate with year-round cool ocean breezes and a mean temperature of 29° Celsius
- Located outside the hurricane belt
- Grenada is a Safe, unspoilt tourism destination and the people are warm and friendly
- Grenada has a strong economy and the tourism industry recently registered record growth
- Home to St. George’s University, one of the world’s largest American accredited medical schools
- Convenient travel with daily direct flights from a number of major cities
Grenada CBI benefits:
- Citizenships are processed fast – approximately 150 days
- Government citizenship fees for families are low – for a family of four, the main Government fee is just US$50,000 plus minor government due diligence and processing fees
- No interview, education, language test or management experience is required
- No residency requirements and dual citizenship is permitted
- Grenadian citizenship offers visa free travel to more than 140 countries including China, Russia, the Schengen States, UK and Singapore
- Grenada has source-based taxation: tax residents are not subject to Grenadian tax on their worldwide income, wealth, gift, inheritance or capital gains
- unmarried dependent siblings of the Principal Applicant and his/her spouse can be included, as well as unmarried children under the age of 30 and dependent parents & grandparents under the age of 55
- Ability to sell after 5 years and secondary purchasers of Real Estate can qualify for CBI
- New citizens who take up residence, after one year can benefit from up to 90% discount for undergrad courses at St. George’s University
- Grenada is an E-2 visa treaty country with the USA
Grenada CBI Application process
Step 1 – Applicant appoints agent
Agent assists the applicant in preparing the application form and supporting documents for the submission to the cbi unit (ciu) in grenada.
Step 2 – Complete official forms
Applicant prepares cbi application with ima’s guidance.
Step 3 – Execute psa & make initial payments
If section 11, applicant or investor signs purchase & sale agreement (psa) and pays the deposit. Applicant then wires deposit and initial fees to agent.
Step 4 – Submission to CBI & processing
Agent vets cbi application, submits to cbi unit (ciu) and liaises with ciu on any queries. Approximately 90 day processing by ciu. No applicant interview required.
Step 5 – CIU decision
Ciu makes recommendation on application to cabinet who decides. Ciu advises agent who advises applicant of outcome.
Step 6 – Government fees & property purchase
On approval, applicant pays balance of government fees and property purchase price to agent. Oath of allegiance taken.
Step 7 – Certificate of registration & passport
Approximately 30 days after receipt of funds ciu issues certificate of registration and passports.
USA E-2 Investor Visa
The E-2 investor visa allows a successful applicant to enter and work in the USA based on an investment they control there. The investment must be “substantial” with no set minimum. E-2 investor visas are available only to citizens of certain countries that have a bilateral investor visa treaty with the USA
- Grenada is the only country in the Caribbean that has an active CBI programme and whose citizens are eligible for the USA E-2 Investor Visa
- If granted, the visa is valid for 5 years, and can be renewed without limit, provided that the underlying investment still qualifies
- Application directly at a US consulate
- Spouse of E-2 applicant has open market employment opportunity
- Children (under the age of 21) of E-2 applicant can attend school in the USA and are eligible for in-state tuition, in most states
- Processing time for E-2 visa is usually two months or less
- E-2 applicant and family members can spend as much or as little time in the US as they wish
- E-2 visa holders can reside in the US while their permanent residence (EB-5) applications are pending
Citizenship by Investment at Kimpton Kawana Bay is fast, financially sound, and provides global access opportunities that other CBI programmes around the world simply cannot rival
Frequently Asked Questions
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)
The King studios and Double Queen studios in the Phase 2 Matura building at the beachfront (floor plans shown in green and purple in the Matura brochure). These deeded properties are priced from USD 425,000. Purchasers receive a full equal share interest in the rental programme and are entitled to two weeks of usage per year.
2. Dual Title Studios (half ownership)
Phase 3 Kiawah building (floor plans shown in green and purple in the Kiawah brochure). These are one-half studio ownership properties priced at USD 350,000. Each King and Double Queen studio in the Kiawah building is being sold to two purchasers as tenants in common. This form of dual ownership means that each purchaser holds an individual freehold half share in a property by title deedwith the right (subject to the mandatory rental programme) to possess, sell, mortgage and will their half ownership in the property without the need for consent of the other purchaser. This makes it an ideal structure for dual ownership of an investment property.
For this offering (following approval of the citizenship application) the developer will pay USD 50,000 towards each purchaser’s costs and, an additional USD 50,000 will be paid upfront in the form of a security deposit for the leaseback of their interest in their property to the developer for the first five years after the Kiawah building commences hotel operations.
In consideration of the USD 50,000 security deposit, each dual title purchaser assigns their usage and rental revenue rights to the developer for the first five years after the Kiawah building commences hotel operations. At the end of the five year term, each dual purchaser will be entitled to participate in the rental programme, thereby receiving half of the revenue attributed to the dual title studio. Each purchaser will also be entitled to one week’s free annual occupancy at the resort.
3. Multi Title Suites and Studios (multi ownership)
In the Phase 3 (Kiawah building) and Phase 4 (Rekawa building – as of the date of this manual, Rekawa has not yet launched for sale), there are one-sixth suite ownership properties (these are shown in tan in the Kiawah brochure) that are priced at the new minimum investment amount of USD 220,000. Each suite is being sold to six purchasers as tenants in common. This form of multi-ownership means that each purchaser of a suite holds an individual freehold one-sixth share in the property.
As of the date of this manual, Multi Title Studios have not yet been launched for sale. It is however planned that studio properties will be sold to three purchasers as tenants in common, such that each purchaser holds an individual freehold one-third share in a property.
All multi title properties are owned by way of a title deed with the right (subject to the mandatory rental programme) to possess, sell, mortgage and will their ownership interest in the property without the need for consent of the other purchasers; making it an ideal structure for multi-ownership of an investment property. Purchasers will receive a one-third equal interest in the rental programme and are entitled to a one-time usage of one week in a suite or two weeks in a studio.
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:
- 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.
- 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.
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.