Own a piece of paradise, make a sound investment and be part of a like-minded community:

A year and a half ago, I invested in Barefoot, a friend’s company building an eco-resort in Belize. Barefoot specialises in creating, building and managing very distinctive, mid-level luxury resort communities that are socially responsible and environmentally friendly. Members are educated and international young professionals (as well as some successful serial entrepreneurs and a UK MP…).
This year, they are launching a new resort in Palawan, Philippines. The offer has just been launched and closes May 31st (first come is first served on property selection):
1. You’ll need US$100,000 of capital to invest over 4 years.
2. The proposed cash return is 42% on the original capital investment (over the four year Investment Period);
3. Plus, allocation of an improved parcel of land;
4. Plus, construction and fittings for a ready-to-rent villa which can be further customised and then used, rented out or sold.
5. Rental income is likely to start at US$10k per annum (US$250 per night), of which approximately 80% is returned to the owner.
If you are just considering your return on capital employed: The best case scenario is $1 = $3.92 in four years. The worst case is US$142,000 in cash and an appreciating asset.
If you are thinking rental returns, you still are promised a cash sum of US$142,000 after year 4 plus ownership of the ready-to-rent island villa. These will rent at US$250 – $450 per night and depending on how often you use it, rental income is estimated to start at $10,000 per annum of which 80% is returned directly to the owner. The all-inclusive annual fees are low (approximately $2,500) and if you do not rent your property in any given year (keep it as a private home), the charges are discounted.
No debt funding is used for the project and investors retain a claim on all company assets (the island, equipment, materials and cash) until the investment is a success. The management team also defer their own profit-related rewards until the investors are paid. The investment capital is employed through a Limited Liability Corporation meaning that all investors are responsible for their own tax declarations - the company will not deduct tax at source nor declare assets or income on behalf of the beneficiary.
Above all, you’ll do your bit for sustainable development and own a beautiful villa on a tropical island.
You can learn more about the project by viewing this online presentation:
http://www.barefootinvestments.com/docs/is...ew_barefoot.pdf

Or by visiting their website : www.barefootinvestments.com.

Of course, you can contact me directly for the full pack or more information (please look at the online presentation and their website first).

Joel
joelcere@hotmail.com

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I'm A Fool With Borrowed Money, Were do i sign up?

I have an "investment pack" which is more information about the resort, investment memorandum and so on. If you email me, I'll send it to you. It's a zip file with 4 PDFs document. If you are interested or have further questions, I'll put you in touch with the team.

Joel

He was being sarcastic...

what is the point in these meaningless sarcastic comments?
if someone has a look at the investment package and wants to input some constructive criticism then that is fair enough - but why try and knock someone without actually having a look at the details of what they are offering?

Does anybody know if this is a scam ?

it is not a scam - I have actually been looking into this opportunity for the past couple of weeks - I have not yet made a decision - however dont take my word for it - do your own research ...

It's not a scam (everyone gets so paranoid these days...). It's a friend of mine who set up this company a while ago. This is their second development. I invested in the first one and I am helping im finding buyers for the second one.

thought i would move this discussion to the appropriate thread

Rondy - please tell us more about what you know of Barefoots Belize project - you feel their properties are overpriced?

You can find land in Cayo district for $5000/acre. Then you can build a proper house.

Or you are only interested in eco-tourism? then maybe go to Long Caye Belize.

Rondy - I am not really interested in the alternative product as I have no intention of going to Belize - i am only interested in the competance of Barefoot as a company and if you have any insight in this respect then please let us all know

Do you actually know the details of what Barefoot are doing in Belize? or their prices?

It seems uou are not comparing like with like here - Barefoot are creating a fully managed resort community with infrastructure, facilities etc - this is not the same as buying a plot of land and building your own private home

I read about it some time ago but I forgot all the details. At that moment it looked expensive.

They looked competent. If money is not an issue and you want their type of product, go ahead.

Rondy I can buy a plot of land in Bahamas for $3000 and build a house but this is not the same as owning property within a resort.

I do not think you can find land in Bahamas for $3000. Show me the advertisement for that.

Then, the deals I was talking about were in a resort.

They are not as big as your Saidia but they are still resorts.

Joel

Please give us more info about how your investment in the Belize project has gone - have you already made a return there? Are you investing in the second project as well?

I invested in the Belizean project a year-ish ago. Mostly because I knew the management (one was an ex-colleague), Belize seemed like a market ripe for growth through tourism and I liked their commitment to sustainable development. In short, I could make a nice ROI and doing some good. The first phase of the Belizean project is near completion (most of the infrastructure is there now and the environmental assessment impact is about to end). So far the land has doubled in value so I am quite pleased with it. Next steps will be for me to build a small villa for rent as part of the development.
The project in Palawan is more upmarket and I cannot afford it unfortunately (not yet). If I had available cash, I would definitely go for it. I know the region for having lived in South-East Asia and it is beautiful.

Hope that helps.

Joel

i am very interested in this development, although at the same time it appears to have huge amounts of risk associated with it.

could you please give me some answers to the attached questions?

1. I understand the $100k investment will give you an equity share in the resort. I presume therefore that any over runs to costs will need to be made up by the investors?

2. Can you let me know high level numbers for cost estimates for the resort?

ie - Land Purchase
- Infrastructure (water, electricity, sewage treatment)
- Build costs for villas
- Costs for developing facilities, restaurants, etc
- Other costs such as landscaping.

I am concerned that 30 investors putting in $100k is $3m which doesn't sound like alot to develop from scratch a private island. I would be scared that the investment would turn into a black hole with investors being exposed to virtually unlimited risks.



but if you can convince me that the costs will come within the budget, then i would be very intested in investing.

Thanks.

I have an information pack that I can email you. I will include contacts for the team as well as they will be better placed than me to give you details about costs. My email address is on my profile, send me your contacts and I will send you the docs + contacts by reply.

Cheers

Joel

Exactly my conclusion. £1.5m to get a mid luxury resort built - you pay this for one villa some places let alone a whole island to boot!

I have a feel the resort will cost far more than the directors think.

Secondly there is inadequate detail about the 'villas'. I would want exact details / pics of the proposed units which I guess are from kits.

Thirdly I dont like the fact one director lives in N Ireland and one is a globe trotter and the company will be governed by St Kitts law. To much opaqueness for investors. I would want a lot more controls in place to ensure these directors cant dissapear into the mists with my money. I prefer increased Tax exposure in return for far greater investor security - ie governed by English company law etc.

Would also want some kind of financial oversight by a London based lawyer that would be responsible for ensuring funds are released only for bonafide purchases and not say $2m transfered to some bloke in the Philippines who for all we know is in cahoots with the UK directors to 'dissapear' with money. This would have a cost implication but better to spend a little more to be safe eh.

I share these concerns, but I haven't ruled it out. I'm particularly interested to see a full cost break down, find out more about the units being built and see evidience that properties sold off-plan will fetch in the region of $200k.

I too have looked at this one in great detail. On paper it looks great...however I agree with Dogbox......£1.5m for a whole island?? The details on the villas are very vague......vagueness is something I do not like when I am parting with my cash!

Hmm.....perhaps I'll kick myself on this one......but I'm just not convinced they can deliver what they promise on £1.5m alone?? Would we have to keep ploughing in money to get it off the ground?? Would we have to cut our losses and realise it's half baked at the 11th hour??

Hello,

Just to clarify here: This is not to buy an island, it is to build a resort on an island.

Joel

I am now confused. I assume that to develop a resort on an island you first have to buy it?

My understanding is that it is $1.5m to buy island (approx) and further $1.5m to start developing it, buy and build the first 30 or so units.

From what I can see $1.5m for an island is realistic.

Sorry, I doublechecked with the team: They are buying an entire island in the Palawan REGION. Palawan is also the name of the largest island in the region. So it is not to buy Palawan island but an island in the Palawan archipelago.

I realise Joelcere - $1.5m for whole of Palawan would be the deal of the century! Not knowing where the island will be adds an extra unknown and increases the risk, but that's the way it has to be with these things. If they were to say which island they had their eye on it would likely increase the price they have to pay for it.

Hi, board -

First things first - I'm a member of the Barefoot Investment team. We have had a few enquiries that quoted this messageboard, so it feels only right to come and have a look. A cautious thanks to Joel for spreading the word in this way...

Some of the comments have been very interesting - if only we could get the entire island of Palawan for $1.5m! There are roughly 1,000 islands in that region, beautiful, mature and some large, some the size of a football pitch. Most are untitled and not appropriate for us, some are titled but with question marks, the rest have been our focus over the past year. For an intrepid company with time and resources, Palawan is an incredible choice - new airports coming online, developer incentives for eco-tourism, superb workforce and some of the most stunning natural views that you can find. That's why we are there.

Although we make our money from developing property, we invest it and share it quite differently to other developers that we know. If people are bored of hearing us go on about the business, we stop at 'eco-developer', if they have more interest, we describe ourselves as a blend of ethical management, socially responsible investment and sustainable development.

As with Belize (and other areas of interest), our resort community developments are funded, developed and managed with creativity and a bit of innovation that we put to work for investors, the community, our business and future resort guests. The comments about development costs are spot on - it would be VERY hard for a traditional development company to do much with the funds we raise from private investors, but then, our overheads are largely stripped from each project and we bring plenty of resources to the table that are not charged to a specific venture. What you are left with then, is capital that goes to improving the asset(s), not paying us consulting fees for example. Besides, we take ALL of our own rewards on the back end, after investors are satisfied and the venture is stable. There is a lot of homework and due diligence in a project such as this and we work with good people to make it happen (HSBC and PWC for example).

Another difference between us and others (as far as I know!), is that our projects are designed with investors at the outset - the rewards, the timeframes, the locations; these are all a collaboration. It makes sense to us - investors like us are looking for certain types of deals and as people, we enjoy certain types of projects over others. As a company, we try and bring this together and customise a project that works for us all financially and in terms of personal interest - then, we spread the word and bring in some other like minds. It's not rocket science and it is a bit more fun that our funds usually bring (unless you are a geek about managed funds, anyone?).

Dogbox, your comment "I dont like the fact one director lives in N Ireland..." is valid enough (although Northern Ireland is a great place to live and own property, plus the nature of our business requires globe-trotting...). Many investors are risk-averse and keep investments local - others like to take advantage of legitimate tax efficient vehicles for their overseas investments. For this project, that was one of the criteria from the outset. Also, there are no restrictions on the advisors/lawyers that our members use - we have a very transparent structure and have always encouraged interested parties to seek advice (in fact, we have got a few new members from advisors in the past). Nevis is a reputable jurisdiction and it allows investors to take control over their reporting and tax according to UK practice (or the US for our US members), rather than be saddled with unfamiliar regulations. There is no liability attached to an investor in a Nevis company, just to the management team - so it's also better than forming a local limited company in many situations.

If you have any questions, comments or criticisms do get in touch - we can't answer detailed questions about a specific investment on here but we're a friendly bunch and workaholics too. We'll also be releasing the more traditional discounted off-plans sales later in the year through some of the UK's best property investment specialists.

Best, Matt

PS We have interested parties for a few projects in other regions - if you'd like to be involved in a custom project for 2008, take a look at the site and register your interest if any of the countries appeal to you... www.barefootinvestments.com

PPS Rondy made a comment about a project in Belize - I can't respond to that as I think he is mixing us up with someone else (there are a lot of "Barefoot's" in tropical areas which is why our actual projects are never called Barefoot. He is also thinking of eco as a socks & sandals type of environment; More Sandals or Six Senses actually, but then its a new market and some people still think organic, oil alternatives, fair trade and climate change is for treehuggers only.

Is anyone still considering this investment?

If the returns come in as they are forecasting, it will be a spectacular investment.

Put in $100k and in 2-4 years you get back $142k + you will have the villa you have purchased, which will be worth between $150 and $250k depending on how the market moves.

It is just a pity that this is such a small developer as i don't feel comfortable handing over such a large amoutn of cash to a small handful of people I don't know.

could this be a scam? what safegaurds could i use to protect myself from being ripped off? would an escrow account help? any advice would be very welcome.

I really like this one and I think its fairly safe, afterall investors will be shareholders with access to Bank statments etc.
I know these islands - Ive been twice and it really is the most spectaculour place Ive been.

The bit I struggle with is the sleepless nights as a lot could go wrong. Im impressed with the key personel, they seem very very sharp and intelligent as well as thorough and forward looking.

They do need however to firm up the property design.

I was also slightly concerned as to whether this could turn into a money pit, for example if water collection / extraction proved more difficult than expected.

Changing global weather patterns and rising sea levels would also have to be factored into the risk / reward blend.

Very tempting, very exciting but fairly complex. Mmmmmmmm

Thanks for the continued interest in the our venture. We are due to close this one in a week or so and forums such as this do help us refine our offer for future investments.

A couple of things that may be interesting to posters:

- About escrow accounts: we looked long and hard at escrow for this offer; since the deal is really a private equity investment (with a property investment approach), the capital is put to good use immediately and it's not usual for shares to be paid via escrow (since you get what you pay for immediately). Besides, with a project that moves as fast as this, as soon as the funds are in escrow, they would be drawn upon to improve the asset and move the project along. Also, the fees for escrow are pretty high for a lean programme such as ours - I admit we could offer investors the choice for an additional fee, but since many of them were not too worried, we decided to have one offer for all and ditch escrow in favour of quick activity and transparency.

For the discounted off-plan releases later in the year, you can expect the usual escrow and staged-payments used elsewhere - it's standard practice for the agents we work with. We use HSBC and Price Waterhouse Coopers for advising on structures and appropriate facilities during the early-stage (which we manage directly).

- About property design: we do have full architectural drawings and specifications for 30 variations on a single property design. However, the final configuration is subject to our final master plan. That is the main reason we have held back from being very specific about the ready to rent accommodation that comes with each investment. Also, the investment should be judged on the potential returns, this includes ownership of a class of property, but not a specific property. In hindsight, we perhaps should be selling the designs and configurations a lot harder, but we really expected most investors to buy-in and then put the property on the market at a later stage. In that scenario, the property type isn't as important as our assumption on the re-sale price.

- About global warming: We only have to look at what is happening in the Maldives to see the effects rising see levels (and poor construction methods) will have in the near term. We chose Palawan simply because it has such mature islands - tops of volcanoes, lush forest and a 90% intact coral reef. We spent 2 years looking at Honduras and Belize before and simply couldn't reconcile a few things: prices (inflated), land type (low level sandbanks) and development issues (mangrove clearing, dredging to build beaches). Fortunately, the Philippines rolled out some interesting incentives for eco-developers plus we had been working on a way to buy property legitimately and securely in Asia - the timing was good. These island will be some of the last ones standing without a doubt (East Anglia will go first!).

As for the other comments about risk - I can 100% say that this is not a scam. If it was I think we would probably want to add a few 000's to the budget to enable us to escape the wrath of quite a few of our close contacts! Besides, you would know where to find us. In all seriousness though, for this project and others, we always recommend seeking advice and we will continue to be open and approachable as a team. More than that we cannot do. Later projects may be structured differently - we take our cues from investors when planning them - but the more formal and protected the structure, the more expensive and immobile the project (usually). We believe that we have struck a good balance that enables us to move fast, retain flexibility (required in emerging locations) and still offer a robust operating structure that investors can relate to. Keep in mind, our approach is based on our own desires as investors - to create deals rather than wait for them to come along, and to get involved at the earliest possible stage, rather than at the usual off-plan stage.

Even for those who have not been comfortable with the risk involved in the early-stage, there will still be opportunities to get involved. Later in the year through a few reputable agents, we will offer "pre-planning discounted off-plan" (mouthful!) and retail off-plan sales will be released next year. Both are priced under market value in order to ensure quick occupancy. Why? The sooner we sell-out, the sooner investors can exit and the resort can operate without the disruption of building.

** QUICK UPDATE **

As we still get a few visitors to our website from this thread, I thought an update and a photo might be of use to new comers.

Barefoot Investments have successfully concluded the first phase of this project and will be releasing a number of chic eco-residences through our two UK agents Q3 of this year (you can pre-register on our site, or via our page on the Move Channel). The property we acquired (as per the promises made) is simply stunning - 124 acres of lush rainforest, fringed with sandy coves, dramatic cliffs and caves, a huge crescent shaped beach and some of the most spectacular marine life you can find - Dolphins, corals, Manatees and Whale Sharks to name a few. Seed investors now have their initial capital secured by a very saleable asset. Some are even braving the elements (warm sea water and an ever-present sun) to see the development in person.

My thanks to all of those who expressed support for our ecologically and socially responsible investment; our resort management company, Cacao Resorts will I am sure, look forward to welcoming you to Palawan's pre-eminent eco-resort in 2010.

Later this year, we will release a new early-stage opportunity, although I admit that we will be a little stricter in how the offer information is shared with potential investors (sorry board!). You can always visit our site (new version due for launch in April) and register your interest or comments there.

Matt

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(credit: C. Morrison http://private-islands.blogspot.com/)