The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A $30 billion New York asset management firm is “very close” to having a $74 million bid to acquire the British Colonial Hilton hotel accepted, Tribune Business has been told.

Sources close to developments surrounding the downtown Nassau resort, the ‘anchor property’ for Bay Street, told this newspaper that its two existing owners were mulling over an offer that was close to meeting their target price and terms.

The British Colonial Hilton is jointly owned by the Canadian Commercial Workers Industry Pension Plan (CCWIPP), the pension provider for Canadian supermarket workers, and Adurion, the Swiss/UK boutique investment house and private equity player.

Tribune Business was told that the two, and the New York-based asset manager, were close to consummating a deal said to be worth $74 million, and were only a short distance apart on valuation.

One source said: “Adurion and the pension fund finally came to an agreement between themselves to sell the property [the Hilton], and came up with a price and terms acceptable to them.

“They’ve now received an offer acceptable to them, which the Adurion folks in London are close to accepting. It is very close to happening.”

For the Bahamas, downtown Nassau and the Hilton’s staff, the key will be what any buyer’s plans for the hotel are, and particularly what they would seek to do with the vacant land to the property’s immediate west - a site long seen as ideal for an upscale marina, retail and office development.

Tribune Business understands that Colliers, a Canadian/US real estate firm, has been engaged to market the British Colonial Hilton. But, given the sometimes tense relationship between CCWIPP and Adurion, a deal is not certain until it is signed, sealed and delivered.

However, Tribune Business was also told that the same New York-based asset manager has made a $40-$45 million offer to acquire the still-closed South Ocean property in southwest New Providence. That real estate is owned outright by CCWIPP.

Confirming developments with the Hilton and South Ocean yesterday proved difficult. Khaalis Rolle, minister of state for investments, yesterday said he as out of office, and added: “I don’t have any details on that as it stands now.”

However, Prime Minister Perry Christie in September this year exclusively confirmed to Tribune Business the New York asset manager’s interest in the Hilton and South Ocean.

He said then: “I have met recently with the owners of the Hilton hotel, that is the pension fund and the Swiss developer. They have placed it for sale.

“I know they are receiving offers of some significance. The pension fund, in meetings with them last week, indicated that they were receiving offers for South Ocean. They are assessing those offers, and a part of those assessments is a new valuation of the property itself, so that they could really look in context at what is being offered.”

Mr Christie added: “They [CCWIPP] have assured me they taking steps rapidly to see to the sale and new investments in that area [South Ocean].

“They are flexible, meaning that they have before partnered with persons who were investors, and I think what they would want to do is to ensure that they get the maximum offer for the property from someone with the capacity to develop it. I am aware that a major equity fund has made a significant offer.”

Tribune Business was told that in relation to South Ocean, which has effectively been closed for some six-seven years, CCWIPP had promised to get an appraisal, seek “a fair price and sell it”.

It had pledged to respond to the Government by mid-end September, with the latter having warned that it “can’t commit” to the property’s casino licence, development rights and road re-routing unless some development takes place.