Amid a depressed global economy and a slowdown in visitor arrivals, it is being projected that Barbados should witness an increase in property sale transactions.
This disclosure has been made by Aliyah Jaggasar, trustee at RBTT Trust Ltd, which manages its Praetorian Property Fund. In unaudited financial statements for the six months ended March 31, 2010, Jaggassar reported that one “experienced company” is witnessing an 80 per cent increase in serious inquiries in December and January compared with the same time a year ago.
According to Jaggasar that will augur well for the three properties held by the fund in Barbados,” she said in a published report. “The fund has continued to upgrade a selected number of commercial and residential properties in an attempt to preserve values, while it continues to receive significant rental income from its high end properties in the market. “The Bay property in Barbados underwent some renovations that were completed at the end of last year. There have been several showings in the recent weeks and we anticipate it being fully tenanted before the end of this financial year.”
This latest news should be an encouraging sign for local real estate agents and property developers who have highlighted that the previous 18 months did witness a decrease in market prices on the island.
The report said that the fund reported a net income of $3.11 million for the half-year. The net asset value per unit of the fund stood at $6 compared with the market price of $3.85, which still represents a significant opportunity for investors. The accumulated surplus stood at $39.9 million while the total net asset of the fund was $239.9 million.
The report said the decrease in tourist arrivals to the Caribbean continues, with several of those economies which are dependent on the tourism sector still feeling the adverse effects of the slowdown in global markets. “Updated tourism statistics for 2009—as at February 2, 2010—reflect declines in overall arrivals for all jurisdictions, except Jamaica and Curacao, where the fund currently holds no properties. “Caribbean economies continue to await stronger recovery in the United States, United Kingdom and other source markets to positively impact their key sectors,” the report stated, citing the Caribbean Tourism Organisation as its source.
