The Tribune

By NATARIO McKENZIE

Tribune Busines Reporter

nmckenzie@tribunemedia.net

PRIME Minister Perry Christie said yesterday that a buyer seeking to purchase the British Colonial Hilton was currently in its due diligence period, adding that a rival was “lurking in the background.

Speaking at a luncheon session of a Corporate Strategies for Leadership and Talent Development Forum ,led by the Bahamas Hotel and Tourism Association, (BHTA) Mr Christie said: “ One international company is now in a due diligence period, with about two three weeks left in this period to complete.

“There is another purchaser lurking the background. We are looking forward to this happening with development to the property that is sitting here, making hundreds of new jobs.”

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.

Colliers, the Canadian/US real estate firm engaged to market the British Colonial Hilton to potential suitors, has been heavily pushing the development opportunities offered by the 6.1 acres of seafront real estate immediately to the resort’s west. Apart from the 288-room British Colonial Hilton itself, the assets for sale also include the 22,240 square foot Fort Nassau, and 83,300 square foot, Centre of Commerce office buildings.

Tribune Business sources said the asking price for the British Colonial Hilton has dropped into the $60 million range, having once been in the $70-$80 million range.

This newspaper previously revealed that the principals behind the Nassau Palm hotel’s purchase had become interested in acquiring the property.

Sunset Equities completed the purchase of the Nassau Palm on West Bay Street at end-May 2013, with plans to invest $8 million in its upgrade and transform it into a Marriott Courtyard brand.

One of its major players is thought to be Argent Ventures, a New York-based private real estate developer that owns the land under the city’s Grand Central Terminal.

The company also owns the Capitol Records Tower in Hollywood, California, and Miami’s Omni International Mall.

Another player eyeing the British Colonial Hilton is the developer of Toronto’s Bayside district, Hines.

Hines is a privately owned, international real estate firm with $24.3 billion in assets under management.

The company bills itself as having a presence in more than 100 cities and offices in 18 countries, with regional US offices in Atlanta, Chicago, Houston, London (European headquarters), New York and San Francisco.

Hines’ portfolio includes 1,273 properties, including skyscrapers, corporate headquarters, mixed-use centres, industrial parks, medical facilities, and master-planned resort and residential communities.

Mr Christie, meawhile, noted that the Government had also received an application to purchase the South Ocean property, an offer he described as “reasonable”, but declined to reveal the offer price.

“There is an application to buy it for a sum that is very reasonable, and we have every reason to be confident that these invitations will translate and manifest itself into jobs,” said Mr Christie.

South Ocean is also owned by the Canadian Commercial Workers Industry Pension Plan (CCWIPP).

Tribune Business understands that CCWIPP had been asking $90 million for the 373-acre property, which has been closed for about a decade, with this newspaper’s sources suggesting it was worth anywhere from $30 million to $60 million.

Tribune Business also previously revealed that Argent Ventures was eyeing South Ocean, too.