The Tribune

By NEIL HARTNELL

Tribune Business Editor

THE owners/developers of some 500 acres at Grand Bahama's West End believe they are " very close" to reaching an agreement with the Old Bahama Bay Resort's 73 condo owners over the property's management, with talks also having been held over re-opening the area's airport.

Lubert Adler, the US private equity firm that was the financier for the former $4.9 billion Ginn sur mer project, and its master planning partner, The Crave Group, were said by sources close to developments to have had "good discussions" with the condo owners over transferring Old Bahama Bay's management and rental programme back to them.

The talks have been ongoing since the two partners announced in December 2011 that they were not seeking a renewal of their agreements, largely because they were losing what is understood to have been several million dollars a year on them.

Tribune Business's sources yesterday suggested Lubert Adler/Crave and the condo owners might reach an agreement later this month, but failure to do so to-date resulted in some 29 Old Bahama Bay employees being laid-off earlier this year.

"It's very close and very hopeful," Tribune Business's sources said on the possibility of an agreement being reached. "It looks very promising, and there's been some good discussions. It looks like they are going to do it, and we're pretty certain it will happen. The parties are trying to work out a couple of details, and are exchanging information.

"This is one hurdle, and once Lubert Adler and Crave get past this, it will be one less thing for them to worry about, something under their belts, and they will be able to move on to better things."

Lubert Adler and the Crave Group, in the shape of Old Bahama Bay, have retained responsibility for the resort's marina, and food and beverage operations.

Tribune Business's contacts said Lubert Adler/Crave were thinking they would "be in a better place at the end of this year than last year", and have continually been flying potential development partners, financiers and investors into West End so they can assess its potential - especially the $200 million already invested in its infrastructure.

"They've been entertaining a lot of people coming to take a look at the property. They had a couple of prominent bankers come to take a look at the property, but there's nothing of any substance yet," one source said.

However, Tribune Business can reveal that Lubert Adler/Crave had held talks with the Civil Aviation Department about once again re-opening West End's airport to commercial traffic.

"They've been talking to Civil Aviation about re-opening then airport, and there was a big meeting here a couple of weeks ago," one source told Tribune Business. "They'd like to see the airport open up, because it would be a huge asset from everyone's perspective. It would be a feel good thing, huge for them and the hotel. Any good news in this climate would be positive."

Old Bahama Bay Resort and the surrounding 225 acres, plus another 294 acre parcel that contains the golf course in West End, are controlled by Lubert Adler, the main financier for the stalled $4.9 billion Ginn sur Mer project. The resort property also includes a 72-slip marina and two restaurants. Lubert Adler has partnered with The Crave Group, the Canadian-based developer, to masterplan those landholdings and move them forward.