International property company Casa Group has received governmental approval for the initial part of its US$5.2bn (3.5bn euro, £2.63bn) mixed-use development on the Cape Verde island of Santiago.

The first phase of the 1,640-hectare development has been masterplanned by the UK-based AukettFitzroyRobinson architects.

Called Porta Mofina, it will include the creation of a resort town settlement, two specialist hotels – one to be a luxury spa resort – and a watersports centre, marina and business facilities.

Located along the coastline between Sao Francisco and Sao Tome Bays, the first stage will cover 50 hectares with a gross development value of US$639.9m (Euro430m, £324m). Work is expected to begin on-site in mid-2008.

Overall masterplanning for the project is being undertaken by integrated design practice Broadway Malyan Architects and Designers.

The Republic of Cape Verde consists of 10 islands and eight islets located off the west coast of Senegal. The largest of the islands is Santiago, on which the Casa scheme will be located.