Basseterre, St Kitts and Nevis: Under the leadership of Prime Minister of St Kitts and Nevis – Dr Terrance Drew, several claims about the Real Estate Investment Option of the Citizenship by Investment Programme were addressed and busted by the government. A number of updates were released to the regulations powering the CBI Programme of the country by the Prime Minister, Citizenship by Investment Unit Head (CIU) Michael Martin.
It has been reported that the updates were related to the 2023 regulations, which aim to tackle the troublesome practices and ghost projects in financial terms under the Real Estate Option of the CBI Programme (REO). It has been said that the Government of the Twin Island Federation strives to ensure genuine value to the investors and stakeholders by maintaining its stand on CBI Real Estate.
In this regard, to eliminate the loopholes, St Kitts and Nevis government has launched the latest multi-faceted real estate development application with a proper approval process. It also ensures the enforcement of the project milestone requirements and stricter escrow.
As per the federal government, to bring credibility and added value to the Programme, several improvements to the projects were made. The enhancement will also benefit the nation with development and growth by providing better facilitation to the investors, said reports.
While introducing improvements and project approval in the Real Estate Investment Option, the design was made carefully with details and proper consideration and consultation. It has been said that such improvements will add advantages and strengthen the administrative framework of the Programme. The integrity of the Programme is a crucial retainment for the esteemed CBI Programme, and such measures played a vital role in it.
The introduced improvements have ensured that the Programme’s value, integrity and transparency remain maintained with the well-regulation system.
According to the 2023 regulations, a number of genuine real estate development options have yet to be reduced available to investors. On the other hand, the evolution process becomes more rigorous, guaranteeing that the project selected for the Programme connects with the quality, sustainability and long-term value creation of high standards.
The 2023 regulations are not focused on hindering investment while taking into consideration the importance of maintaining confidence in the Citizenship by Investment Programme and ensuring the investors about its clean process—the environment of stability, prosperity and trust among all the parties involved and promoted.
A number of real estates units are also made available to be sold to the applicants who qualify for the CBI. The CBI Board has approved the real estate development project of Governors in accordance with the 2023 regulations, reports noted.
To exclude poor-quality real estate developments, the CIU has made improvements in the real estate approval process and eliminated the threat of tarnishing the Programme and the nation altogether. It has been an important part of the CBI as an improved process that St Kitts and Nevis CBI Programme could only approve legitimate real estate projects to the investors that can offer resale value.
The authorities further explained that the poor-quality real estate projects cover fraudulent, deceitful and unacceptable financial conduct and inactive real estate developments popularly known as “Ghost” projects. Many developers of such projects were found offering discounts illegally by holding applicants’ investment funds offshore, as per the CIU reports.
Several reasons were outlined as responsible for the decrease in approved developments, as the existing projects were needed under the 2023 regulations to apply for redesignation as per the latest eligibility requirements. The poor quality projects do not bring any legal or legitimate investment and value in the nation but only devalue the local real estate.
Furthermore, it has been said that a developer may pay commissions and fees to their agent out of any specific amount of the real estate fund in excess of US$200,000 on a proper construction of sub-regulations 29 (11) to 29 (13).
The Government of St. Kitts and Nevis and the CIU are committed to ensuring that all real estate investments under the St. Kitts and Nevis CBI Programme bring substantial value to both investors and the people of St. Kitts and Nevis.
