Re/Max owner and realtor Kim Lund launched the Cayman Property Investment Fund Ltd. on 15 November after obtaining the necessary licence from the Cayman Islands Monetary Authority.
Mr. Lund said the fund would be the first diversified property investment company in the Cayman Islands.
The fund will look to acquire a variety of properties below or at fair market value, Mr. Lund said.
‘It’s not going to specialise in any one type of property,’ he said. ‘We’ll look to buy multi-family homes, commercial properties, land and vacation properties. We’ll look wherever there are opportunities.’
The fund will gain earnings through income producing properties and/or through capital gains.
‘We’ll buy and hold the properties unless there’s a unique opportunity to gain a quick capital gain,’ Mr. Lund said.
The minimum investment is US$100,000, and funds invested in the first year of the fund are subject to a three-year lock-up period.
Mr. Lund said he’s been thinking about starting such a fund for 10 years.
‘I didn’t feel it was the right time before, but if there was ever a right time, now is it.’
Poise for growth
After a five-year period during which there was little or no appreciation on Grand Cayman properties, Mr. Lund feels the country is poised for a big increase in property values over the next five years.
He pointed to the opening of the Ritz-Carlton, Grand Cayman as being one catalyst for the high growth in the market.
‘People say location is important for real estate, and it is, but timing is as important, or more important,’ he said.
Mr. Lund, who has more than 20 years experience in the real estate business in the Cayman Islands, thinks he is the right person to direct a property investment fund.
‘I have the contacts for properties, I know the values, I know the situations where people who want to sell at a discount,’ he said. ‘I have the network of contacts, and it’s really about who you know.’
Mr. Lund said he not only expects, but is counting on other realtors to approach him with properties they want sold.
There are already several commitments to invest in the fund, Mr. Lund said.