The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Bahamas appears poised for a “much better year” on the foreign direct investment (FDI) according to State Minister for Investments Khaalis Rolle, who noted that several hotel/resort developments in particular were expected to materialise in the new year.

Speaking with Tribune Business, Mr Rolle noted that efforts to entice foreign direct investment to this nation were beginning to bear fruit.

“I feel confident saying that 2014 is going to be a lot better than 2013 on that front. We have placed significant emphasis on all investments, foreign as well as local,” said Mr Rolle.

Mr Rolle highlighted the upgrade and reopening of the 183-room Nassau Palm Resort among some of the key developments to materialise in the new year.

According to Mr Rolle, the resort, which is projected to reopen in April, is set to create 120 jobs.

Sunset Equities, a consortium of Caribbean and international investors has announced that it will invest $8 million to upgrade the property and transform it into a Marriott Courtyard brand, employing Bahamian contractors and local labourers in the process.

The West Bay Street property, located opposite downtown Nassau’s popular Junkanoo Beach, has been on the market since late 2010, but two previous sales fell through.

Alluding to the expansion and reopening of the Club Med Property on San Salvador, Mr Rolle said: “We have announced that development on San Salvador and we hope that that moves forward very quickly.”

Back in October the government signed a Heads of Agreement for the expansion and reopening of the Club Med property in San Salvador.

Sand and Ocean Investments Limited will be an added partner in the $90 million project at Columbus Isle Village. The expansion phase will reportedly consist of construction of 360 new luxury condo-hotel units and staff housing, all of which will be built in phases, to be developed and financed by Sand and Ocean and operated by Club Med. Additionally, Sand and Ocean is planning the construction of a 125 room boutique hotel to be managed by a European luxury resort operator, he said.

The work is expected to be completed in four years and during construction it is projected that some direct 335 jobs will be made available to Bahamians, with a minimum of 250 Bahamians to be employed in resort operations.

“There is a project taking place on Rose Island and we are trying to take that through the approvals process. They’re going yo be moving very quickly as well,” said Mr Rolle.

Back in November Prime Minister Christie alluded to developments on Rose Island stating: “On Rose Island, a Bahamian has developed a hotel there, and another non-Bahamian hotel group is about to develop a hotel there.”

Mr Rolle also noted that there is expected to be a “major movement” for the Hilton Hotel in early 2014.

Tribune Business was told by sources close to developments that Hines, a privately owned, international real estate firm with $24.3 billion in assets under management, was in the final stages of due diligence on its $61 million Hilton offer just prior to Christmas, at which point it has to decide whether to proceed with the acquisition.

The 288-room property that is very much the ‘anchor property’ for Bay Street and downtown Nassau, 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. It is also touting the $15 million, or $52,000 per room investment in upgrades to the Hilton in 2010, plus a further $2 million that was kicked in during 2012.

Apart from the 288-room hotel itself, the assets for sale also include the 22,240 square foot Fort Nassau, and 83,300 square foot Centre of Commerce office buildings.