Ridleys' (First) Open Skies Company Review
Company:
International Pilots Group Home Page:
www.ipgglobal.net Description:
A consortium of airline pilots, retirees and professionals that create one-step investment opportunities to benefit members of the airline industry.
Project/Opportunity: They currently have a
Condo/Hotel Project on Grand Cayman in the Cayman Islands. It’s a 102-unit beachfront Resort in the Cayman Islands. Phase I is 30 - 2 bdrm interval ownership units and Phase II started construction about a month ago. The units are sold fee simple (you own them completely) and can be purchased as studio, 1, 2, or 3 bedrooms. All of their projects focus on the airline industry, with most of the benefits enjoyed by airline personnel, due to the ease of travel, respect and the reputation we bring. (explained in more detail under benefits.) Membership to join the IPG is fee based, but is currently waived for anyone involved in aviation or an affiliation. The projects benefits are scaled to the group, meaning this project has specific benefits which were determined by the size of the group at the start of the project. As the group grows I would imagine leverage for more benefits due to the increase in the group size will help everyone involved. They seem to have a good grasp of what's important in an offshore investment, and there was no lack of information on the current project, including layouts, rental returns, permanent resident documents, etc. All in all, their Cayman project appears to be generally most beneficial to overseas pilots although there appear to be benefits to ownership from a straight return on investment and a vacation residence (But this is just my opinion). After chatting with them about future projects in other tax-advantaged areas of the world, they seem to understand the needs of their pilots’ base.
Benefits:
Tax Benefits: With their first project being in the tax-haven of the Cayman Islands and offering permanent residency with ownership, pilots in certain high tax countries like, Canada, UK, Australia, New Zealand, Germany & S. Africa would benefit greatly from having a PRS in this jurisdiction.
ROI: With the first half of the project completed in the form of the Reef Resort (Phase One), which is already built, owners can rent out any of their units (have them added to the hotels rental pool) to earn a reasonable return while they are not using their units. Also, from what I've read, (try Vault Magazine an excellent off-shore financial magazine) the return on prime oceanfront real estate on the island and this region has been amazing.
Globetrotter: They have added the ability for each owner to trade his/her unit with other Interval ownership units around the world. (
quote from website) Unique to this development, and for the first time ever in Cayman, is the ability of the owners (even though their units are fee simple) to trade time when their unit is not being occupied, through Interval International’s Time Share Exchange Program. This will allow the owner to vacation for weeks or months at other Interval International five-star resorts around the world. A typical trade would cost between $114 and $135, depending on location. Currently, Grand Cayman is one of the most sought after destinations in the world, giving owners great trading power.
Interval International’s other five-star trading partners include Hyatt, Westin, Marriott and Sheraton Resorts, to name only a few of the sixteen hundred resorts hosted by Interval (
end quote)
Amenities: Castaways' Cove has a lot of amenities, all 5-star, including (
quote from website) three interconnecting seaside pools, attached whirlpool, fountains, lit dock, lit seaside tennis court, beachfront bar, oceanfront restaurant, fitness center offering Life Fitness training equipment, outdoor BBQ/Gazebo, the ease of a centralized charging account, 24 hour front desk (lobby) and security, a centralized switchboard, Ocean Frontiers on-site dive operation, mini-market, on-site concierge, liquor store, internet cafe and new beachfront bar and grill for casual dining and cocktails. (
end quote)
Beachfront Lifestyle: My last benefit, but one of my favorites is how they designed the units, (
quote from website) All villas will be oceanfront with an unobstructed view of the ocean. A pool area with washrooms and a large pool deck will also be available for the Castaways’ owners. (
end quote) White sand beaches, blue water, enough said.
Visitors welcome: One of the nicer benefits to the airline industry, is the ability to reserve a unit for as little as $1000USD down, and then you can fly in and stay for a few days on them, to see if you like it.
Pros: Too many to mention. You seem to have a solid group, good first project, lots of benefits, a nice start. I can't wait to see what you will do in the future. This is a solid opportunity for pilots and airline people. Even the
vacation rentals/exchanges forum was great. But on to the Cons.
Cons: All that good stuff being said, there are some major points that need to be addressed.
Location. Being in the Cayman Islands, each person should weigh the benefits of the tax situation, and find out if it’s good for them to get a PRS (some US citizens may not benefit as much). Also there should be a little more information on just what is involved in becoming a permanent resident. There could be more information on how hard/easy it is to get to the Caymans from various parts of the world. (since you’re an international company, I felt this was a no-brainer)
Price. The cost of the units can be a hurdle for many people in the airline industry. Without researching, I wouldn't have known that I could purchase a 2 bedroom (1 bedroom, studio combo) with a cohort, and we could share use of the 1 bedroom, and then rent out the studio permanently to make back our investment. (took some work to find this little gem.) This point is huge. Many of us in the airline industry do invest together and do vacation together, this is part of our lifestyle and the ability to share in an investment where both parties receive a PRS is important. All in all, you may find a lot of airline people cannot afford this type of investment.
Notoriety. You seem to have a large group of members. (I assume that, based on the benefits of your first project, which is based on the scale of your group.) How many members do you have? Why don't you post the number as it’s growing? (this would encourage more growth) Also, why don't you showcase or get involvement from some of your more prominent members. (I haven't seen any pilots quotes or comments on the site) but I'm sure by now you have some quite prominent members, who could write articles for the site, or create a forum for the members to chat, etc.
BIGGEST PROBLEM!!! PPRuNe deserves a special deal. Why don't you think about creating a special offer for ppruners. Time limited or member limited, something to gain interest in your group and project.
Synopsis: Whether you use this organization as a member, an investor or even as a referrer (yes, they have a referral program) it has benefits, maybe not for you today, but for the future and the future of the group. They seem to be doing good things, with good people, nothing seems fluffed and the projects are not dreams (or 'never builds') they are real. All in all, I feel this is a benefit to people in our industry. I look forward to seeing others copy their formula (which you know is inevitable) and the projects and the paths the IPG chooses in the future. If anyone has any experience with them, good or bad, please feel free to
rebut!!!