The Tribune

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

DESPITE the Minnis administration’s ambitions to open the Grand Lucayan Resort by winter this year, Finance Minister K Peter Turnquest said the deal is still being negotiated.

“Unfortunately, it’s not gone as fast as we’d like,” the deputy prime minister said in response to questions from The Tribune ahead of yesterday’s morning session of Cabinet. “But these things happen with these kinds of transactions.”

He said the government was still “very encouraged” by what’s happening and anticipated an early resolution in “the coming weeks”.

Mr Turnquest said the Wynn Group, a Canadian real estate development company, was still involved, adding there were also interests from other groups.

He declined to go into further detail of what was on the table, saying to do this would be “inappropriate,” but assured that the government would have a deal within weeks.

Earlier this month, Tribune Business reported the Wynn Group was back at the table and negotiating with Cheung Kong (CK) Property Holdings over a new, revised offer to purchase the Grand Lucayan.

In addition, Tribune Business said this resulted in the Minnis administration placing its own takeover offer on hold, in the hopes of Wynn or another private investor successfully concluding a deal with Hutchison Whampoa’s real estate arm, thus limiting the taxpayer’s potential financial exposure.

The Nassau Guardian previously reported Paul Wynn, CEO of the Wynn Group, pulled out of the deal to purchase the resort and was seeking to get his refundable deposit back from Hutchison Whampoa, the owners.

In October, the government made an offer to the owners of the hotel to purchase the properties in Grand Bahama to remain in line with Prime Minister Dr Hubert Minnis’ commitment to not only keep the resort open but ensure jobs were maintained.

Finding a purchaser for the Grand Lucayan is critical to the survival of Grand Bahama’s sluggish economy, which has been struggling since last October when the three-resort hotel property closed following significant hurricane damage. Grand Bahama’s economy has also been in decline since Hurricanes Jeanne and Frances in 2004.

Dr Minnis, in late July, revealed during a national address the government was negotiating to become temporary joint owners of the Grand Lucayan Resort in a bid to boost the hotel until it can sell off its equity. At the time, he said “all signs point to the beginning of renovations at the resort” sometime in October, with the facility “ready for business for the winter season”.