The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

An Abaco realtor yesterday queried why the Government was “reinventing the wheel” with new multi-million dollar resort projects when existing ones were for sale at a fraction of these sums.

Ed Newell, a broker with Abaco Estate Services, told Tribune Business he was at a loss to explain why the Minnis administration did not steer the developers behind the $580m Tyrsoz Family Holdings project to look at the Treasure Cay resort he is currently marketing for sale.

Pointing out that, at $62m, the property is available for a fraction of the sum that the south Abaco developer is proposing to invest in a greenfield site, Mr Newell said Treasure Cay already possesses many of the amenities - hotels, marina and golf course - that it wants to develop.

Revealing Treasure Cay’s appearance on the market has already resulted in approaches from the Radisson hotel group and several private equity firms, he described the 650-acre property as “a diamond in the rough” that required refreshing and new investment.

“Why reinvent the wheel?” Mr Newell asked after Tribune Business revealed details of the Tyrsoz Family Holdings proposal last Thursday. “There’s a reason nobody develops in south Abaco. It’s so exposed and is not conducive to what they want to do.

“There’s no labour pool for them there, and I just can’t see the BEST Commission allowing them to develop the marina where they want to do it.” He added that the project site was also perilously close to the Abaco parrot’s breeding and nesting grounds, while the Sandy Point airport was meant for domestic - not international - traffic.

A four-page booklet produced by Tyrsoz Family Holdings Ltd, which has been obtained by Tribune Business, details plans to construct multiple hotels, residential homes, a 136-slip marina, golf course, water park, nature preserve and other amenities spread across almost 1,100 acres that is split into two separate land parcels.

The project’s two potential real estate holdings include the 620-acre Lantern Head parcel, which according to renderings seen by Tribune Business appears to be especially close to the National Forest. The other 467-acre tract, called “South-West Point”, lies further south on Abaco’s south-western tip.

Much of Tyrsoz Family Holdings’ booklet was devoted to reassuring Bahamians of the company’s environmental sensitivities. It is promising to create “a world-class, environmentally-sustainable luxury island retreat with local appeal via the participating community while, importantly, maintaining South Abaco’s natural charm”.

However, Tribune Business understands that concerns are indeed building among environmental activists due to both the size and location of the proposed development, which is in close proximity to the 20,500-acre Abaco National Forest and the prime breeding ground for the endangered Abaco parrot.

Mr Newell yesterday questioned why Tyrsoz Family Holdings was willing to sink massive amounts of capital into developing the necessary infrastructure on a ‘virgin’ site, sums that have often made it impossible for similar Bahamas-based developments to generate the necessary investment returns and profits, when existing mixed-use resorts were available for sale.

“For that amount of money, why not come and buy something that is a long-established, marina resort community in The Bahamas?” he asked. “Why not purchase the long-established Treasure Cay resort - 650 prime waterfront development acres with a 1,200 home owner base and exclusive 3.5 mile beach marina/ golf course located in the calm protected waters of the Sea of Abaco?

“It’s a diamond in the rough. Spend some money, dust it off and you’ve got a private peninsula and calm sea of Abaco. It needs new blood and new life. It drives the commercial and economic engines of all the surrounding cays - Elbow Cay, Man O’ War Cay and Green Turtle Cay. It is also between two international airports and two of the island’s highest-populated areas, which would supply the labour pool.”

Mr Newell said the sales process had been “a learning curve” for Treasure Cay’s owners, with the property broken up into nine separate parcels that are available for sale individually or collectively. The latter option will cost $62m.

“I’ve been speaking to the Radisson hotel group and a number of private equity firms,” he told Tribune Business. “The reason the owners broke it up into small pieces was to make it more affordable and economically viable. It comes with the option to increase land acquisitions at a later date.

“I don’t see why the Government - the Prime Minister, Brent Symonette, Dionisio D’Aguilar - don’t steer people towards Treasure Cay because economically for the island and surrounding cays it makes sense.

“You have an exclusive 3.5 mile beach, can put a number of hotel brands with it, couple that with a marina and golf course, and have airlift from Marsh Harbour and Treasure Cay and a labour pool. Why not point people wanting to do a $600-$700m project in Treasure Cay’s direction? I just don’t get it,” Mr Newell continued.

“You have a homeowner base that wants to spend money on amenities. As far as boating is concerned, it’s the boating capital of The Bahamas but they’re not utilising the moorings in the anchorage.”

Mr Newell suggested a new owner could invest in creating a new, high-end community on nearby Clipper Cay and place mega yacht docks in front of homes and condos, raising fees collected from $75 a night to $500 a night.