International Real Estate – Turks and Caicos Islands – Gordon Kerr

I head a team that provides a broad range of advice on all aspects of real estate work, ranging from the most straightforward land sales to extremely complex resort development projects. Our work encompasses every aspect of the services required by the client and includes real estate transactional work, financing, permitting and licensing, as well as general corporate advice. At Misick & Stanbrook, we pride ourselves on the breadth and depth of the knowledge that we bring to each transaction. I have nearly 40 years’ experience as an attorney in the Turks and Caicos Islands, and my team enhances that experience with their modern-day approach to the profession. Along with my partner, Tremmaine Harvey – and the rest of our team – we strive to offer an unparalleled level of service to our client base.

Since the end of the COVID pandemic, there has been a tremendous upswing in real estate business in the Turks and Caicos Islands. Coupled with the increase in volume of business, we have seen very steep increase in land prices. Turks and Caicos is now a highly sought-after investment destination, and we have been extremely busy servicing that demand.

On an international scale, most of our clients are relatively sophisticated real estate investors, and so the approach taken is frequently different to that of a local investor. International clients are not usually looking for our views on the value of the product they are acquiring or the commercial terms of the contract they wish to enter. Their concern (particularly for a first-time buyer in the offshore market) is to ensure they will receive good title and that their investment is safe. Local buyers are often familiar with the land title system in the Islands and are aware that it is indeed safe and secure. International clients may struggle with local terminology and practices, and so advising them in those regards – and providing them with the explanation and assurance they require – is often a major part of our work.

Many international clients opt to take title to their property via locally organised companies with a foreign company or trust holding shares in that company. This brings in a whole new range of legal advice that is not generally necessary for local buyers who tend not to use companies, or if they do they hold their shares in their personal name.

Finally, international clients are often keen to learn about immigration permits that might be available based on their investment. For obvious reasons, this is not usually a concern of the local buyer.

There are currently at least nine major hotel developments underway or about to commence construction in Turks and Caicos. Brand name resorts, such as St Regis, Andaz, The Loren, Molo and Kempinski, are at various stages of construction. Beaches Resort and Point Grace (part of the Grace Bay Resorts family) are involved in major expansions, and various other new developments are also underway. It is estimated that by 2030, the number of hotel beds available in Providenciales (the main centre of tourism) will have almost doubled.

We are beginning to see a shift away from the standard condotel model that was so popular in Turks and Caicos. Many of the new developments comprise a residential or condo component alongside a European plan hotel.

There is also a huge expansion of the private rental villa market taking place with new curated villa developments, such as the Beach Enclave brand, which is proving incredibly popular.

With the expansion in the property market outlined above, environmental and infrastructure concerns naturally arise. The airport is one example wherein infrastructure has failed to keep pace with demand, and there is an acute awareness that roads, schools, housing and health facilities will not be adequate to service the rapid increase in demand that is forecast. The government is currently addressing some of these issues and has commissioned studies into others. A major expansion of the airport is due to start in the next 12 months, but a more holistic approach is required, and there are signs that the government is grasping this – and that at least some of these issues will be addressed in the near- to mid-term.

Many of our major commercial real estate developers are from overseas and, with few banks on the Island, it is not uncommon for developers to source their financing from overseas as well. We recently acted for a developer based in the US with interests elsewhere offshore, as well as on the mainland US. They obtained nine-figure financing through a New York-based lending company. High value loan transactions like this can be complicated at the best of times, but adding a cross-border element to the equation adds significantly to the challenge. It requires an unusually high degree of collaboration between a large number of local and overseas attorneys, as well as input from the clients and their development team. Attempting to marry the requirements of the offshore lender with the local peculiarities of Turks and Caicos law demanded considerable expertise and, occasionally, innovation. At the end of the process, the 360-page loan agreement was signed, and the resort is now under construction.

Our firm is a member of several networking organisations, and we regularly attend regional and/or global meetings. Furthermore, we endeavour to publish articles on a variety of subjects and frequently posit updates on our website.