11/05/11 - Tortuga Beach opening heralds new era for Cape Verde

When it comes to new summer resort destinations, it seems wealthy British retirees and property investors are starting to look south of the Med. On the central Atlantic island nation of Cape Verde, 570km off the coast of West Africa, Resort Group's sold-out new 5-star development, Tortuga Beach, officially opened for business this week after attracting an unprecedented level of interest from investors. With increased direct flights from the UK expected to attract an influx of tourists to the islands this summer, it's no surprise the group's next development is also approaching sell-out status.

Located on the island of Sal, one of the 10 islands making up the archipelago of Cape Verde, Tortuga Beach is an €85 million partnership between Resort Group and Sol Melia, Spain's largest hotel chain. Its 372 luxury villas, fringed by 5-star facilities including high-end restaurants and a large spa complex, were almost overwhelmingly purchased by British investors, with only four units bought by non-UK residents. 50% of the purchases were made through the national SIPP (self-invested personal pension) scheme.

Cape Verde's equatorial location makes it a particularly attractive destination for winter holidaymakers, a fact several UK tour operators have jumped on this year - both Thomas Cook and charter airline Thomson Airways will commence weekly direct flights to the island of Boa Vista from Manchester and Bristol this November. Sal's current tourism figures denote a healthy mix of many European nationalities, however, with 26% from the UK, 15% from Germany, 13% from Portugal and 12% from Italy.

Resort Group's managing director, Charlie King, said the global recognition of the Sol Melia brand, combined with healthy interest from UK tour operators and holidaymakers, would help to generate healthy returns for investors. "Capital growth rates here in Cape Verde are good, and have averaged around 10% on land and property in recent years", he said. "Having an excellent hotel and resort operator on board like Sol Melia means buyers should be able to achieve rental returns of at least 8% to 9%." The group's next development on Sal, Dunas Beach, has already sold 1,000 of the 1,206 units available.