DESPITE A MAJOR DOWNTURN in the United States mortgage market, the real estate sector in the Caribbean continues to peak. This is the assessment of Fortress Caribbean Property Fund chairman Geoffrey Cave, who said, "We have not seen evidence yet of a similar problem in the Caribbean, and with the American dollar so weak against both the pound and the euro, our second-home real estate markets should continue to be strong from potential buyers in Europe." However, he warned, "it would only be a matter of time until we feel the effects here if the real estate and credit problems in the US lead to a recession." Cave's comments came in the current Fortress Caribbean Property Fund annual report, where he also said that the fund's performance (2007 net profits rose 41 per cent to $7.3 million from $5.2 million in 2006) was in line with target returns but under potential. Investment advisors to the fund, Paul Altman and Terry Hanton in their report confirmed expansion in the property sectors, especially residential, and predicted that vacation homes would double in the future. In fiscal 2007 the investment gurus considered 18 purchase opportunities, including two in Antigua, one in St Lucia, one in Canouan and the other in Barbados. "The opportunities included investments in a cruise terminal, office buildings, a retail mall, resort condominiums, and land for development," Altman and Hanton reported. They concluded two sales and agreed three purchases in Barbados - Worthing Great House in Christ Church (in partnership), Waterhall Polo Villa in St Thomas, and Hillside Villa at Limegrove, St James. (SR)
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