The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

GRAND Bahama State Minister Senator Kwasi Thompson revealed that there is “high interest” from prospective buyers to purchase the Grand Lucayan resort property in Grand Bahama.

He reported that a number of proposals from Bahamians and foreigners have been presented to the government, which wants to sell off the hotel as quickly as possible.

Mr Thompson gave an update on the government’s purchase of the hotel on Sunday. He said: “We anticipate a smooth closing.”

Although there are still a few minor issues that the government, the Office of the Attorney General, and the lawyers for Hutchison Whampoa, the hotel’s previous owner, are completing, he is confident that a resolution would be reached and the sale would proceed.

In the meantime, the junior minister stated the government was very pleased with the level of interest in the property by prospective buyers.

“The board and government have been receiving a number of applications and letters of interest and offers for the purchase of the Grand Lucayan. The board is going through the due diligence process and would release a prospectus to give all the information to the buyers,” said Mr Thompson.

He noted that the board of special purpose vehicle Lucayan Renewal Holdings Ltd will be issuing a deadline on when it will stop entertaining offers and make recommendation to the government on an appropriate buyer for the hotel.

Michael Scott, chairman of that board, told The Nassau Guardian recently there are more than half a dozen interested buyers.

“At the moment, we are pleased with the interest from Bahamians and non-Bahamians,” Mr Thompson said. “And this is really going to be a wonderful time for Bahamians to step forward and put their best offer in. For those Bahamians who have the ability, the government will look seriously at their proposals.

“We do not want to give any details on any of the proposals that are presented to us. There are a number of people who have presented proposals and it would be very unfair to those persons who have not yet provided their proposals to hear what kinds of proposals have already been submitted. We do not want to prejudice anyone,” he said.

“The government is processing them and doing their assessments on all of them. We are working hard to sell it (the hotel) as quickly as we can, and at the moment there is high interests.”

Mr Thompson noted that the board is expected to soon obtain the scope of work for the renovation of the hotel property.

Two of the three hotels that make up the Grand Lucayan strip have sustained substantial hurricane damage following Hurricane Matthew in 2016. The Lighthouse Pointe is the only property that is open.

According to Senator Thompson, the board’s priority is the continued operation of the Lighthouse Pointe, the sale of the Grand Lucayan property, and providing the scope of works for renovations.

“The government’s full focus is on the sale, but also ensuring that employees are dealt with, and as best as we can, the renovations to provide additional employment opportunities for Bahamians,” he said.

On the matter of a dispute concerning monies owed to Hutchison Whampoa as a result of the Christie administration’s continued payment of $300,000 per month to Hutchison Whampoa, despite the Memories resort’s closure, Mr Thompson said that those issues are being worked out by the attorneys.

Last week, Tribune Business revealed that, as part of the deal to entice Canadian tour operator, Sunwing, to open the former Reef hotel with its Memories brand, the former government agreed to guarantee its monthly lease/rental payments to the Hong Kong-based conglomerate.

“The AG’s Office is having some discussions with respect to resolving those issues. So, obviously, I would not want to make any kind of public comment while they are actively being dealt with by the lawyers.

“I am confident though that it is going to be resolved and the closing is going to proceed, and that eventually we will have a sale and a new destination provided,” Mr Thompson stated.

Mr Thompson said the board will continue to meet with employees to ensure a smooth transition and that all employment issues are dealt with.

He thanked the employees for their continued patience. “We made a very important step and that was to purchase the hotel, and so the employees can rest assured that the government, in our continued deliberations with the unions, will have their best interest at heart.”

Mr Thompson also extended thanks to the board and those from Grand Bahama who were appointed, including CPA Linda Turnquest, attorneys Willie Moss, Terrence Gape, and Carey Leonard, and hotelier Russell Miller.