What are the key risks and how are they mitigated?
Cape Verde is politically stable with sound democratic
institutions and a strong legal framework based on
Portuguese law. The government has consistently
encouraged foreign investment and fostered a dynamic
A significant risk for any developer is the availability
of land. TRG is no longer exposed to site acquisition
risks because it has already acquired (on a freehold
or option basis) the land required for all of its
There is negligible planning risk because TRG has
secured outline planning consents for future projects.
It provides significantly more detail than required
to reduce the work involved in moving from outline
to detailed consent.
This risk is mitigated by TRG’s significant focus
on diversified routes to market and in its strong
relationships with third party agents and introducers,
both in the UK and internationally.
TRG manages the risks associated with construction,
occupancy and operating costs by negotiating
contracts with strategic partners that are subject
to performance standards. The Group employs
experienced industry professionals to oversee the
output of chosen partners.
TRG considers currency risk to be very low.
Its activities are based predominantly in euros
with some costs in Cape Verdean escudos, which
are pegged to the euro.
Leading tour operators are confident of the
country’s future. Cape Verde has a number of unique
attractions including its climate, political stability,
and its growing popularity with tourists.
Although TRG’s existing property portfolio is
located in Cape Verde, it will soon achieve further
diversification through a presence on multiple
islands, with further aspirations to spread into
European holiday destinations.
TRG’s legal team closely monitors, as much
as possible, proposed changes in regulation,
to ensure that the Group is involved in key decisions
regarding the mitigation of those proposed changes.
In Cape Verde, TRG is one of the largest tax
generators in the country. The Group benefits from
a strong relationship with government authorities,
which ensures it is involved in key decisions regarding
potential regulatory changes.