A new resort development launched its first phase with a cocktail reception Saturday at the site of a South Sound landmark.

The Riviera, Grand Cayman is located at the site of the old Casa Bertmar/Coconut Harbor dive hotel site, which dated back to the 1960s.  That property was severely damaged by the passing of Hurricane Michelle in 2001 and never reopened until now.

The new luxury resort will eventually consist of 58 one, two and three bedroom apartments, as well as studio apartments, co-developer Ben Fisher said at the launch.

“What we’re doing here is delivering the next generation of resort for Grand Cayman,” he said.

The project is being billed as Grand Cayman's first European-style boutique resort and, once phase two is completed next year, will offer five-star service, the developers said.

The first phase consists of the completely refurbished studio and one-bedroom units of the old Coconut Harbor hotel. The second yet-to-be-built three-storey phase will consist of larger units along the property’s northern boundary.

When completed, the waterfront resort will offer a fine-dining restaurant, two bars, a pool, a gym, a Swiss-style wellness spa, comprehensive business facilities and scuba diving.

The first phase of the project, which is now complete, will be rented out long term until the second phase and amenities come on line.

All of the units are being offered for sale as vacation residences. Mr. Fisher explained that owners will be able to use the units for up to 42 days a year.  For the remainder of the year, the units will be rented through the daily rental pool. 

The developers, who include local businessman Mike Brown, are guaranteeing a 6.5-per cent return on investment for the first year of ownership once the second phase opens.

Unlike most other vacation ownership properties, The Riviera will allow owners to add personal touches to the décor, including things like artwork and other personal chattels, Mr. Fisher said, adding that these items would be stored by the developers when the owners aren’t using the units themselves.

The Riviera’s Sally Hendricken said several of the units were already sold and they are also drawing attention from residents to be used for visiting guests, as well as investments.

Sales at the property are being handled by the exclusive listing, agent, Roy Powell of Century 21, as well as other members of the Cayman Islands Real Estate Brokers Association.