The Tribune

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

A crowdfunding-based real estate business is urging that it be given a “fair shake” as it enters its fourth year of seeking approvals from Bahamian financial services regulators.

Carlyle Bethel, principal of Akerage Ltd, which was formed to make real estate investments more accessible to the average Bahamian, said he was unsure why the process of obtaining all the necessary approvals from the Securities Commission of the Bahamas (SCB) is taking so long.

Asserting that Akerage has submitted all the requested information, and been in “constant” communication with the regulator, he added: “We’ve been in communication and working with the Securities Commission for about four years.

“We started back in 2020 and it has been a long journey to this point. We’ve been in constant communication. We’ve been accessible, we’ve been understanding, we’ve submitted, answered and delivered all requested documents, information and answers that the Commission has asked for.

“I’m not in a position to say exactly what the hold-up is and I don’t want to speculate because I do believe that the Commission has a great group of talented individuals working for them. I think they have the best interests of the country and the industry at heart, and I think they want to see the various industries that they oversee succeed,” Mr Bethel continued.

“All we at Akerage want is a fair opportunity to show what innovative Bahamian talent and business minds can do and achieve. The opportunity is there, the need is there and the solution is there. All we need is the green light to turn on the engine. Only the Securities Commission can give that to us.”

Mr Bethel explained that over, the past four years, his company has worked with multiple professionals to develop its business model and none have found any obvious weaknesses. He reiterated that his company is “completely above board” and can provide a solution for many Bahamians that find it difficult to invest in, or acquire, real estate.

“Over that four-year process, we have worked with professionals from various industries. We’ve worked with lawyers, accountants, real estate agents, former regulators and some of the most established businesses in this country,” Mr Bethel said.

“None of them can point to any issue or illegality in our business model. In fact, many of them say it’s a pretty straightforward business that is very much needed in this country because Bahamians everywhere wants to invest in real estate and own a piece of our land.

“The process is often times very difficult and can exclude the majority of people in this country. It’s very unfortunate, but what would be more unfortunate is if we have a solution and just chose not to allow it to operate, and so we at Akerage just want a fair shake. We want a fair opportunity to operate our business, which is completely legal, completely above board and in compliance with all relevant legislation.”

Mr Bethel continued: “Bahamian real estate is one of the most valuable assets in the world. We did an interesting exercise back in 2020 during COVID, when we were looking for alternative investments for clients, and what we saw was that income-producing Bahamian real estate was one of the safest, most lucrative investments that someone could hold for a number of reasons

“The main one is that we have our very wealthy neighbours to the north, the US, who are constantly putting buying pressure on the value of Bahamian real estate. They treat it as a luxury good; they constantly want it. When we see the pronouncements by real estate agents throughout the years they speak about the increasing value of Bahamian real estate. It is highly sought after, and those who have it love it, and those who don’t have it, want it.”

He explained that Akerage will allows participants to buy shares, starting at a $1,000 minimum, in properties that will be managed and maintained by the firm. Investors will receive monthly statements outlining the performance of their portfolio and the income generated after fees and expenses.

Mr Bethel said: “Akerage is about providing an easy, alternative way for individuals to invest in and own income-producing real estate. Instead of you having to save up thousands of dollars, go to the bank, qualify for a mortgage, find the contractor, real estate agent, lawyer, tenants and deal with the tenant management, Akerage handles that entire process.

“We find the deals, put them together and then make them available to the average Bahamian, who can now be an owner for as low as $1,000. They can invest in $1,000 worth of shares in the company which purchases that property.

“We form a holding company that the property is conveyed to; we issue shares to the individuals that invest in the property. The property is purchased. We oversee the maintenance, the management, and we ensure that it’s managed and run in the best interest of the owners,” he added.

“We handle all of the accounting work, all of the legal work to ensure that the income that the properties generate is allocated to the investors based on the amount of ownership that they hold after your fees and expenses.

“We send you a monthly statement to show how the property is performing and what your returns are looking like. As the income is generated, we deposit those funds to your account and you can invest in Bahamian real estate and get passive income instead of having to worry about all of the headache that comes along with buying, owning and managing properties.”