The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

PLANS for the sale of two Nassau hotels have fallen through due to "financing issues", a source close to the situation confirmed to Tribune Business yesterday.

Canadian investors Rick Benisasia and Prabhjot "Jyoti" Johal had been seeking to acquire the all-inclusive, 246-room Paradise Island Harbour Resort, and the 183-room Nassau Palm Resort, on West Bay Street. Mr Benisasia, a Guyanese immigrant to Canada, and Ms Johal, who are in the funeral services business, are the beneficial owners of Benisasia Investments and Properties, the company that was seeking to purchase the two Bahamian resorts.

Tribune Business was informed yesterday, however, that the sale "did not materialise".

"The transaction did not go down," a source close to the situation said yesterday, speaking on condition of anonymity. "The Government was very cooperative in facilitating all the approvals that were necessary. It appeared to be an issue of finance."

Tribune Business reported last July that plans for the sale of the two Nassau-based resorts were likely to be further delayed, as the Government revealed it had yet to be convinced that the would-be investors had the necessary financing to complete the deal.

Employees at the Paradise Island Harbour Resort were informed in an April 12, 2011, letter by Scott Cornelius, the company's regional director and general manager, that the resort would be sold by May 12 to Benisasia Investments and Properties. Attempts to reach Mr Cornelius for comment yesterday were unsuccessful.

The Paradise Island property was being sold by Genwood Paradise Ltd for an unconfirmed price. Genwood Paradise is an investment vehicle thought to be owned by Driftwood, the former operator of Freeport's still-closed Royal Oasis resort. Driftwood is thought to own the Nassau Palm Resort through a separate investment vehicle.

Driftwood has been on an initiative to liquidate all its Bahamas-based resort and tourism investments for some time. Apart from selling the Royal Oasis for $33 million to Irish-based developer, Harcourt Developments, it also sold the Hurricane Hole Marina and surrounding timeshare facilities to Kerzner International. Driftwood's last remaining Bahamian interests are its two Nassau/Paradise Island resorts. Its investments in this nation were financed by the private equity arm of now-bankrupt Lehmann Brothers.

Tribune Business was informed that the two properties could still be up for sale for the right price.

"I don't know how aggressively they are pursuing the sale right now. Everything can be bought for the right price. The market is down right now," a source close to the situation told Tribune Business.