The Tribune

• Kinsale eyeing Fairview acquisition

• Being sold by bank’s administrator

• Wynn ‘back to drawing board’ often

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A well-known Bahamian developer behind projects such as Balmoral, ONE Cable Beach and Aqualina is eyeing the imminent acquisition of a prominent Goodman’s Bay property.

Jason Kinsale, who is currently awaiting the outcome of a Planning Appeals Board decision on his Passion Point development at Love Beach, declined to comment yesterday when asked by Tribune Business whether he is in the process of purchasing the ‘Fairview’ property on the Goodman’s Bay strip opposite the Prime Minister’s Office.

“I can’t comment right now,” Mr Kinsale replied to this newspaper, although he did not deny his involvement. It is understood that Mr Kinsale may be seeking to acquire Fairview in partnership with others, but that his company, Aristo Development, is not involved in the transaction.

Multiple sources, speaking on condition of anonymity, told Tribune Business they had first heard of Mr Kinsale’s interest earlier this summer. Others said a “boutique hotel” is being planned for the site, along with a residential component, but this newspaper understands that the deal - if it closes as anticipated - will only involve the latter and no resort element is planned.

Fairview, which is located next to La Playa, the westernmost property on that West Bay Street strip, is being sold by Igal Wizman, the EY (Ernst & Young) accountant and partner, in his capacity as statutory administrator for its owner, Lucayas Bank, which was the former Private Investment Bank (PIB).

Tribune Business previously revealed that Fairview lay at the heart of the Central Bank’s October 2021 decision to appoint Mr Wizman to take over Lucayas Bank’s affairs. This newspaper was told then that it carried up to a $15m valuation, more than double the existing price, based on plans to redevelop the near two-acre site into a tourism-driven property or condo hotel such as the GoldWynn project next door.

Lucayas Bank’s now-former owners, via a separate company, had also sealed an agreement with the former Minnis administration to purchase La Playa from the National Insurance Board (NIB) but that sale was never consummated. Putting La Playa together with Fairview, this newspaper was told two years ago, would result in a development parcel worth $80m “net of value”.

However, as revealed by this newspaper previously, the Central Bank was unhappy with the inclusion of Fairview among Lucayas Bank’s assets and regulatory capital. It mandated that the new owners sell the property within a tight seven to ten-day deadline that they felt was impossible to comply with.

Another source, confirming these events, told Tribune Business the Central Bank effectively demanded that the new owners “take the real estate assets out of the bank after they had approved the valuation of the bank based on the real estate assets. Then they turned around and said the bank cannot be in the business of real estate. What bank on planet Earth doesn’t have a book backed up by real estate?”

Fairview had been acquired by previous owners to serve as Private Investment Bank’s (PIB) office prior to the latter’s acquisition by the Lucayas Bank team. The Central Bank, in requiring that the real estate be removed from the bank’s assets, effectively demanded that Lucayas’ owners recapitalise the bank. When this failed to happen, the regulator appointed Mr Wizman.

Goodman’s Bay has become a major development and redevelopment location. Besides Wynn Group seeking all necessary government approvals for the 14-storey penthouse complex that represents GoldWynn’s second phase, the former Gaming Board and Bahamas Development Bank properties - both now vacated - also represent prime redevelopment candidates.

Randy Hart, the Wynn Group’s vice-president, told last week’s public hearing on the 14-storey penthouse proposal that development on the Goodman’s Bay strip is now governed by the Planning and Subdivision Zoning (Golf Course Estates) (La Playa) Order 2018. This sets out the specific types of development that will be permitted in that area of West Bay Street.

Mr Hart, meanwhile, recalled how Wynn Group had been forced “back to the drawing board” by the Government’s rejections of its initial Goodman’s Bay plans until they were finally accepted. He added that the 2018 Order was not designed solely to benefit GoldWynn but to assist other developers too.

Recalling how Wynn Group started by acquiring one home that covered five lots, Mr Hart said of the first phase Residences at GoldWynn: “We went through quite a long process to get it approved and we want to do things right. At the end of the day, we don’t want to put up a $125m building only to find out we missed a step or overlooked something. We’re really trying to be quite diligent.

“We went to government and told them our plans and, to be honest, the first few times it wasn’t accepted and we went back to the drawing board. We came back again and again and again, and eventually the Government decided it was in the best interests of the economy, and in the best interests of the Bahamian people as determined by the Government, to pass this ordinance.”

That “ordinance” is the La Playa Order 2018. A copy of the Order, which has been seen by Tribune Business, stipulates that it repeals and replaces an earlier version that was executed in 2010. The current one mandates that “dwelling houses, apartment dwellings, conference facilities, offices and boutique hotels and for purposes incidental to these uses” are the only forms of development allowed.

Mr Hart said the Order “contemplated the future development” of the area, “which of course tied into the the whole opening of Baha Mar and other developments in this area”. Describing it as a “zoning ordinance”, he added: “It basically set the path out for future commercial development in this area and so we were the first kids on the block.

“Over time there will be others. It won’t just be the Wynn Group standing there. The point I was trying to make to the room tonight is that to some degree we’ve proven ourselves. We have a proven track record, and got the job done during difficult times. We’re proud of the building we did, and want to build on that success.”

Dr Hubert Minnis, who was prime minister when the La Playa Order 2018 was gazzetted under his administration, told Tribune Business he was unable to recall the ordinance.

Desmond Bannister, former minister of works, who had ministerial responsibility for the Department of Physical Planning, said he could only recall that the 2018 version was introduced to facilitate certain types of development and Bahamian developer groups.

“My recollection was that there was a small group of Bahamians; there were two groups of Bahamians as I recall who wanted to develop that area for specific purposes. And the Government had certain specific types of development in mind,” Mr Bannister added.