The Caicos Beach Fund, is offering investors returns of 17.7% a year, based on a five-year currency play.
It aims to raise £9m of equity in four instalments of £2.25m, to be invested when the development is completed in 18 months.
The fund will be 60% geared in US dollars by Caicos Beach Club Resort & Marina, which is carrying out the development, at an exchange rate secured in July of £1 to $1.95, compared with today’s $1.47.
The fund is looking to purchase around 80 one-bed flats in the resort’s first phase in batches of 20, which will be managed by Vacation Management, a local management company.
Essential Investments claims that even in the event of a sustained fall in property values, a loss on the sale of units would still provide a positive return for investors.
Essential’s managing director, Alex Hobday, said: ‘The return is based on the current sale price of similar units on surrounding, more popular Caribbean islands – around $700,000 due to massive room rates.
‘We have taken an average sale price in five years’ time of $685,000 with a sterling conversion rate of $1.30 to the pound. Even if we were to sell these at a slight loss at $385,000, we are looking at a return of about 4% on the currency alone.’
He also said that the development had been granted tax breaks in order to catalyse further investment on the island.
England stars Ferdinand and Terry are endorsing the fund and the development for New Era Overseas, an emerging markets property investment company.
They are investing via SIPPs (self-invested personal pensions) and will make promotional visits to the scheme once a year.
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