The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

KERZNER International has swapped the former Hurricane Hole Marina site with Atlantis’s new owner, Brookfield Asset Management, exchanging it for other real estate assets.

George Markantonis, Brookfield Hospitality’s president and managing director, confirmed to Tribune Business yesterday that the Paradise Island property - initially marketed at $29.5 million - was no longer available for sale.

“It has been taken off the market,” Mr Markantonis confirmed. “A trade was done. Kerzner International traded it back, and Brookfield Hospitality now owns it. Brookfield Hospitality now owns Hurricane Hole.

“For Kerzner International, that was the only piece of land they were left owning, and a trade was done with Brookfield for some other real estate assets elsewhere in the world and we have taken it back.”

Mr Markantonis said the trade occurred two months ago.

The deal is likely a positive sign for employees at Atlantis and the One & Only Ocean Club, and the Bahamas and its tourism industry in general, as the accumulation of Paradise Island real estate indicates Brookfield Asset Management sees itself as a long-term player and owner of Bahamian assets.

It may even indicate that, when the economy and timing are right, Brookfield may push forward with Kerzner’s previous plans for a Phase IV development on Paradise Island.

Hurricane Hole and its marina were Kerzner’s last major asset on Paradise Island, which it had sought to sell to the tune of $29.5 million.

The site had initially been slated for a major redevelopment, and then spanned nearly 13 acres, including the marina, 90 dock slips, 1,600 feet of water frontage on Nassau Harbour, and 825 feet on Harbour Drive.

Brookfield last year took over Kerzner International’s obligation to repay the $2.3 billion in principal owed to other members of the lending syndicate it was formerly part of under the terms of a debt-for-equity swap. The debt’s maturity was extended to September 2014, in a bid to give Brookfield and the other lenders breathing space in working out a way forward.

The Canadian multinational acquired both Atlantis and the One&Only Ocean Club, while Kerzner was given managerial contracts spanning four and 15 years, respectively, for the two properties.