The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Bahamian entrepreneur said he has the funding to complete his $2m Paradise Island Lighthouse project despite just last week seeking investors.

Toby Smith, principal of Paradise Island Lighthouse & Beach Club Company (PILBC), told Tribune Business yesterday that financing was never the issue with his project and he can secure the money needed to finance his project. The problem has always been ease of doing business, he claimed.

Mr Smith said: “I spent 15 years in financial services. I used to manage $750m. Me trying to raise $2m to $3m in the first phase of this investment isn’t a challenge.

 However, in a release to the media on Christmas Eve, Mr Smith was apparently cap in hand looking for investors to fund his PILBC

He said in that release: “We strongly believe the timing of a recovering tourism market and high demand are all great signs to support organic growth and sustainability of a sound business. While our initial investment may seem modest to some, we wish to pursue prudent growth modelled around demand and profitability.

 “The investment opportunities for private and institutional investors are limited to mainly traditional equity and debt instruments, as a consequence there is a lot of cash sitting on the sidelines and we are looking to tap into that resource. Our transparency of data, modelling and substantiated market research will help to understand and mitigate risk.

The release continued, “Investors seeking diversity and robust cash flows will have the rather unique opportunity to add this to their portfolios. One significant advantage we possess is that investors can see the bricks and mortar going in and we look to couple this tangibility with profitable success and delivering exceptional service in hospitality.”

 Yesterday Mr Smith told Tribune Business: “I’ve spent 10 years trying to get this project off the ground and the problem is ease of doing business. It isn’t the financing. I made one phone call on Monday and someone said ‘yes’. One phone call on Monday, and that investor said ‘yes’.”

Along with investors who are “poised to invest” Mr Smith says he has his own money to finance the project, however, “getting somebody to commit to something that’s before the courts is difficult. They want to see it cut and dry. I don’t have long to wait for the court date to come around or if this administration wants to choose to settle it out of court, then we could be off to the races sooner or later,” he added.

Mr Smith says he has worked for several investment banks in The Bahamas from Pasche Fund Management and GEM Global Equities Management where he said he has built up a network of several investors looking to work with him to bring the PILBH to fruition.

“I ran Pasche Fund Management, which was a company owned by Pasche Bank and Trust. I was hired as their managing director. I was also managing director and head trader at GEM Global Equities Management,” he said.

Mr Smith refused to disclose the businesses he has started and has invested in, citing that: “They are still in operation and I don’t want to bring any of those into this.”

He also said in his earlier release, “We possess technical financial experience, the very fortunate components of having access to the last remaining Crown Land on Paradise Island, full visibility to all vessels entering the harbour, significant branding and attraction of the fully restored Lighthouse, beach access for Bahamians and welcoming our guests on a non-exclusive basis.”