The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE MINISTER of State for Investments has confirmed “multiple offers” have been made to acquire downtown Nassau’s British Colonial Hilton hotel, proving that the Bahamas was “back in play” in attracting foreign direct investment (FDI).

Responding to queries by Tribune Business on the status of the proposed Hilton sale, as well Sysco’s purchase of Bahamas Food Services (BFS), Khaalis Rolle said: “All of those things are still in play. Ongoing discussion and negotiations are still taking place.

“There’s a process, and we are looking to see that the process will go well and be meaningful for Bahamians.”

Addressing the Hilton sale specifically, Mr Rolle said: “A good sign is that there are are multiple offers being received by the Hilton group for that property now. That shows that the Bahamas is back in play in terms of foreign direct investment. At one point over the past five years, they struggled to receive reasonable offers. Now they are in a position to say this won’t work or that won’t work.”

Tribune Business revealed earlier this month that a bidding war had erupted for the Bay Street-based British Colonial Hilton, with at least two rival groups - one said to have Bahamian involvement - emerging to challenge the $74 million offer submitted by a multi-billion New York asset manager.

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, a Canadian/US real estate firm, had been engaged to market the British Colonial Hilton.

Sources familiar with developments told Tribune Business that the resort’s existing owners were hoping a potential $80 million bid from a London-based investor group might materialise.

And this newspaper was also told that prominent Bahamian businessman James Mosko, head of the Mosko Group of Companies and the Arawak Port Development (APD) Company’s chairman, was involved in helping to put together a third investor group to bid on the British Colonial Hilton.

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.

On the BFS/Sysco deal Mr Rolle said:”That’s still in play and I think they are progressing well with the closure of the sale.”

The Government decided to approve Bahamas Food Services’ (BFS) takeover by multi-bilion US giant, Sysco. Tribune Business had exclusively revealed the BFS/Sysco acquisition plans last year.

Sysco initially expressed interest in BFS back in 2004-2005. The initial deal, which was mulled under the first Christie administration, never came to fruition, partly because the Government was reluctant to grant approval for it in an industry supposedly reserved for 100 per cent Bahamian ownership only.