The Tribune

By NEIL HARTNELL

Tribune Business Editor

SUPERWASH'S president is eyeing a $1.5-$1.7 million investment to expand his existing laundromat chain through adding another outlet at the former Pricebusters warehouse property on Soldier Road, telling Tribune Business: "The time has come to start making a move."

Acknowledging that the expansion project was still two years away from starting, Dionisio D'Aguilar said he was eyeing greater returns from real estate acquired four years ago, and was becoming more optimistic about the Bahamian economy's short-medium term growth prospects.

Estimating that the project would likely create 10-12 full-time jobs once completed, Mr D'Aguilar told Tribune Business he was looking at constructing a 4,000 square foot laundromat at the site. The operation would complement a retail tenant in the existing 8,000 square foot premises once used by the defunct Pricebusters retail chain.

Estimating that sales at Superwash's existing nine locations for 2012 to-date were 5-6 per cent up year-over-year, Mr D'Aguilar said the company had "not done a project for eight years", and could not afford to sit still forever.

While construction of a replacement laundromat for Superwash's existing Gibbs Corner and West Avenue location is the near-term priority, Mr D'Aguilar told Tribune Business: "After that one, we'll probably make an addition.

"I own a piece of real estate on Soldier Road next to Mosko's old construction plant. It was the old Pricebusters warehouse. We'll probably use that for retail and add a laundromat on to it.

"That's still dreaming, and it's probably 24 hours out, but we have the real estate, and have had it for a number of years."

The existing 8,000 square foot building was already being leased by a tenant for manufacturing purposes, Mr D'Aguilar said, adding: "If we can get one big tenant in there, that would be good. We'll see."

Superwash's initial vision is to construct a 4,000 square foot laundromat on the vacant space at the front of the former Pricebusters site, Mr D'Aguilar adding that a company owning - and operating - from premises it owned appeared to enjoy greater returns than one that leased them to another party.

"There are very low returns from renting now," the Superwash president told Tribune Business. "You make money in the real estate business when you own. Renting out earns very low returns, but when you put your own business in it tends to yield better returns."

Mr D'Aguilar said he acquired the former Pricebusters location on Soldier Road around four years ago, and estimated that to realise his vision for the property would require a $1.5-$1.7 million investment.

"That's another piece of real estate we've picked up, and we couldn't leave it in its current state much longer," he added. "We have to continue to grow, continue to expand.

"Every time you open up a new laundromat, you generally create room for 10 permanent jobs. You also turn a couple of people from part-time to full-time, so it would probably create another 10-12 new jobs."

Adding to the sense that optimism/business confidence in the Bahamian private sector is slowly, but surely, improving, Mr D'Aguilar said he had personally moved from 'wait and see' to deciding the time was right to invest in, and grow, Superwash.

"I'm generally a little bit upbeat, more so than I was, so I think the time has come to start making a move rather than doing nothing. I think the time has come to do something," Mr D'Aguilar told Tribune Business. "I've moved from my 'wait and see' to 'it's probably the time to invest', build and invest again."

The Superwash president pointed to increased occupancies and the consistently improving performance of the Bahamian hotel industry, improvements in visitor numbers, and the reduction in the US unemployment rate and gains in other key economic indicators in the Bahamas' most important source market as reasons for his improved optimism.

"It isn't the US of 2007-2008, but you look for glimmers of hope and take the plunge," Mr D'Aguilar told Tribune Business.

"I've noticed it in my sales. 2010 was the bottom; 2011 was flat - maybe up 1-2 per cent - and this year has bumped up by 5-6 per cent. We've started to see a slight turnaround.

"We haven't done a project for eight years. That gives you a chance to build-up cash reserves and go again. You can't sit idle forever."

Meanwhile, Mr D'Aguilar expressed hope that the "just over $1 million" project to construct a new laundromat at the Gibbs Corner/West Avenue location would start "in the next four-six weeks", once the contractor mobilised.

The existing laundromat, which was damaged in a recent fire, had cost $60,000-$70,000 to repair, Mr D'Aguilar said, and had been shut for three weeks - losing Superwash revenue.

"We've got the roof back on," he added. "We were down for three weeks, but are back in business. We're going ahead with plans to build the new one on the adjoining property, and when that is completed, we'll tear the old one down.

"It's a tired property that needs to be replaced. The existing building has a very low ceiling and is very hot. It's just a very old and dilapidated building that needs to be replaced. It'll be a brand new building, with a fresher and more modern look."

Mr D'Aguilar said the new Gibbs Corner laundromat would be slightly larger, at 4,000 square feet compared to the existing 3,800 square feet, and have a better layout. He estimated it would be 12-18 months before it opened.

The existing Gibbs Corner laundromat will be demolished to make way for parking at the new property.