The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Canadian developer for the former $4.9 billion Ginn sur mer project’s real estate component is “not close” to finding a partner, adding that the development was a ‘tough sell’ due to the absence of previous success.

Describing it as a “multi-generational” project in terms of build-out, Bill Green, chief operating officer of Replay Resorts, told Tribune Business in a brief interview recently that the market remained stuck in a “down cycle”.

Explaining that this meant there was little Replay could currently do to stimulate real estate sales interest, Mr Green said the company was staying close to the market and current trends.

Asked if Replay had achieved any success in attracting development partners for its 1,476 acres at Grand Bahama’s West End, Mr Green replied: “We’ve talked to various people over the last few months, but we’re not close to a deal with anyone.”

Emphasising that Replay was trying to ensure “some progress” was made despite the depressed economy, Mr Green said it was attending to asset management and licensing issues associated with the development.

It was also meeting with contacts “still in the market in Florida and other places” to stay on top of trends and buyer demands,

“It’s a large project, even a multi-generational project,” Mr Green told Tribune Business of West End. “So, inevitably projects like this go through market cycles, up and down, but the market is still in a down cycle.”

And, noting the fate of the Ginn sur mer project as initially enviasged and its first developer, Mr Green said the absence of a successful track record made it harder to interest developer/investor partners and real estate buyers.

“It’s difficult to ignore the fact when people see you’re not a story that had previous success in the past decade,” he told this newspaper.

“If there’s no potential market, there’s not too much we can do. We’ve been trying to stay current on the market, and look for opportunities for a niche, based on opportunities we do have in the Heads of Agreement.

“As soon as we see the cries from the market, we’ll be able to get excited at that point. But I don’t think it’s tomorrow.”

Replay Resorts was hired by a Credit Suisse-led lending syndicate, which last year took possession of some 1,476 acres at the former Ginn sur mer project after the initial developer, Bobby Ginn’s Ginn Development Company, defaulted on its $276 million loan.

Replay and the Credit Suisse-led syndicate have effectively inherited the real estate component of the Ginn project.

Ginn’s former financing partner, Lubert Adler, and its own master planner, The Crave Group, have retained 280 acres on the northern side of the West End development, including the Old Bahama Bay Resort, the golf course, the existing marina, commercial facilities such as the restaurants and retail, and associated operational facilities.

Replay has not inherited an empty coffer. Some $124 million worth of infrastructure has already been put in for the 830 serviced lots it inherited from Ginn, some 194 of which have been sold. It therefore has more than 630 lots available for direct marketing to buyers, if it so wishes.