The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Sandyport aims to “shortly” announce a further expansion of its commercial office and retail offering, as it mulls development options for the remaining 12 acres “at our very heart”.

Garth Buckner, Sandyport Development Company’s president, yesterday declined to give specifics on the immediate expansion plans, which are intended to build upon an existing 80,000 square foot commercial property portfolio that is fully leased.

He did, though, tell Tribune Business that the Cable Beach-based developer was exploring possible commercial, apartment and hotel development uses for its undeveloped 12 acres.

And, while the Sandyport Beaches Resort and Hotel had remained profitable throughout the recession, and is currently enjoying 87 per cent occupancy rates, Mr Buckner said expansion was being “explored” there because the property was “too small”.

“We’re looking at future expansion. We’re looking very hard on commercial. We’re currently 100 per cent leased on commercial, and hope to have an announcement in short order,” he told Tribune Business. “We’re looking hard, working hard on our next expansion.”

The Old Towne at Sandyport is home to 80 store and professional businesses, the development having benefited from switching its initial retail focus to a tenant base that is more office-oriented.

Among the largely small and medium-sized business tenants are law, accounting, architectural and engineering firms, and Mr Buckner said Sandyport had been “completely renovated” in the last 18 months through remodelled units, new parking and access roads, and the conversion of pedestrian-only roads into one-way streets.

Looking to the future, he told Tribune Business: “Sandyport has over 12 acres of undeveloped land at our very heart. This is planned for one form or another of commercial, apartment or hotel development.

“We envisage eventual expansion of our hotel, more commercial space, including possibly more ‘A class’ office space with ocean views, and would consider apartments with ocean views.

“Some of these we’re going to do ourselves, and some of these will be done with third party developers. We have a good track record of working with Bahamian developers to bring these projects to fruition.”

Despite the Sandyport Beaches Resort and Hotel’s relative success in being one of the few New Providence-based hotels to maintain profitability during the downturn, Mr Buckner said its 72 suites needed to be increased.

“The occupancy is great, it’s profitable,” he told Tribune Business. “Right now it’s at 100 per cent, and our average is 87 per cent.

“The resort has been profitable right through this past recession, and we understand it is one of the only hotels in Nassau/Paradise Island to be in the black all the way through.

“But really, it’s been too small, and this is what we are thinking about and exploring.”

Sandyport now features 600 homes, construction on the first having started in 1991, and Mr Buckner estimated that the community now featured 800,000 square feet of residential space.

He pegged the total of all buildings at Sandyport at around $240 million, and said the total investment in the community - including roads, utilities and infrastructure - was much higher.

“The sum total of all investment, both our own and third party, is probably $500 million,” Mr Buckner told Tribune Business.

“We’ve developed deliberately in phases. The original idea being the first phase [residential] could stand on its own if demand was not there for any more. This phasing is one of the reasons why Sandyport has worked.

“We were able to develop it in very cohesive parts that worked individually. This allowed us to expand when the market was ready. There are other developments that try to do everything at once, and end up with huge debts and impaired cash flow.”

Sandyport has gone through five residential expansion phases, with Mr Buckner confirming the last had “sold out”.