The unit titles legislation allows investors to hold title to portions of a building without owning the lease of the land that it sits on. Originally drafted to assist just one project, the final bill, approved last year, will cover any project.

Previous similar projects aimed at international investors have been dealt with on a one-off basis. The extension of the new law to make it general has excited opposition from conservationists and local residents who fear for their scarce land resources.

According to a report by Cook Islands online, the first unit title venture, Rarotonga's Manea Beach Villas and Bungalows at Muri went on the market earlier this month. The eight unit investment is priced from $210,000 to $710,000. It promises returns on investment of between 8 per cent and 11.4 per cent.

First year yields for investors are listed from 9.28 percent to 11.41 percent, with guaranteed net yields of 8 percent for two years, the report stated.

All investors will require the approval of the Development Investment Board, and all leases will also require the approval of the Lease Approval Tribunal.