Small island, big investment potential

Caribbean's pristine Dominican Republicattracts wave of U.S. investors

ByKerry Sanders

Correspondent,CNBC, Updated: 6:21 p.m. ET July 21, 2006

TheCaribbean's Dominican Republic is a land of colors with its red, white andtropical blues. But it's all about the green that has people buzzing thesedays.

Theisland nation may have been an undiscovered country to Americans just three orfour years ago, but today it is paradise found. Real estate projects in this Spanish-speakingcountry are sprouting like palm trees.

“TheUnited States market is now beginning to identify the values and theopportunities that lie here in the Dominican Republic, particularly in aproject like Cap Cana, which is aiming to the highest end of the world market,”said Ellis Perez, president of Cap Cana.

CapCana, a project hugging the island's southeast coast, will be the country'slargest private community — a mammoth 30,000 acres — with plans for fivehotels, five golf courses and thousands of homes. It's just beginning to takeshape with hundreds of millions in foreign dollars, 33 percent of which isAmerican.

Realestate in the Dominican Republic is so hot that even before they broke groundat the project Roko Ki they had sold $100 million in properties, 90 percent toAmericans — that too, all in one day.

RokoKi's natural beauty is undeniable. Investors are banking on another seaside jawdropper, with jungle bungalows for the rich and famous, signature golf coursesand fancy villas, signaling even more American interest. The hotel chainStarwood Resort Worldwide is building a Westin.

“Inbetween 10 and 15 years we expect Roko Ki to have 8,000 residences and about 6to 7 high end, five-star hotels,” said Nick Tawil Fernandez, president of theRoko Ki Westin.

Factorsresponsible for the recent Dominican Republic fever are varied. They range froma series of Dominican baseball stars, a democratic government encouragingforeign dollars, a number of new direct flights from the United States and alot of recent good press. These reasons coupled with bargain land prices andcheap labor have helped put the Dominican on the map like never before.

“It'sjust very welcoming, very hospitable and once you've come here you want to comeback,” said Tawil Fernandez of the Roko Ki Westin.

ManyAmericans fall in love with the Dominican while on vacation. A record number oftourists visited this past season after Hurricane Wilma pummeled Cancun,Mexico.

EvenHollywood is taking notice. Recently Brad Pitt was flying about the islandlooking for his piece of paradise. Fellow actor Vin Diesel is planning onbuilding in Boca Chica and Robert Deniro is also actively looking.

Nestledbetween Cuba and Puerto Rico on Hispaniola, the Dominican shares this 29,000-squaremile island with Haiti.