The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government is seeking to transform the stalled 2,012-acre former Ginn development into a “shelf ready project” that is more appealing to potential investors and purchasers.

Phylicia Hanna-Woods, director of investments and the Bahamas Investment Authority (BIA), said the agency is in “active discussions” over the West End, Grand Bahama-based, development in a bid to improve its marketability.

Speaking at the Office of the Prime Minister’s weekly press briefing, she said: “Ginn in Grand Bahama, there are active discussions about that. The Bahamas Investment Authority is reviewing the files with the Office of the Attorney General with a view of coming together for a ‘shelf ready project’ for the Ginn property.”

Progress has been stalled on the 2,012-acre West End site for more than a decade, and Mrs Hanna-Woods said the BIA is assessing whether the property should be split into smaller real estate parcels to facilitate a new project at the site.

She explained that the development is “very unique: due to its location, marina and airport, and the BIA is working with multiple agencies to determine what they are able to offer.

“The property is very large, and so, of course, there are a number of considerations based on the size of the property. Whether it will be split, which target sector should we be looking at given the components of the project,” Mrs Hanna-Woods said.

“You know, that project is very unique, one because of its location, and two, because it has a marina as well as an airport, and understanding across agencies, as well, what are we able to offer for that - based on all of the inter-agency policies - in terms of a shelf ready project.”

The Ginn sur mer project, and West End in general, have been at a standstill for more than a decade since the original developer, Bobby Ginn and his Ginn Clubs & Resorts, defaulted on their project financing in 2011 in the wake of the 2008-2009 recession.

Efforts to find a new developer have resulted in several misses. Skyline Investments, a Toronto-based real estate investor/developer listed on the Israeli stock exchange, with $500m in assets and a focus on hotel and resort development, broke cover to unveil its plans for the 2,012-acre property in the early years of the Minnis administration although no deal ever ultimately materialised.

Tribune Business sources previously suggested that resolving West End’s fate has the added complication of dealing with two vendors. What would have been the core project is owned by Lubert-Adler, which holds 280 acres that were earmarked as the site for the hotels and casino. Its landholdings also include key amenities such as the airport, marina and utilities.

Orlando-based Kingwood International Resorts and its principals sought to acquire the Lubert Adler piece, but were knocked back when the Government refused to approve the purchase. Kingwood acquired Ginn’s former Reunion property in Orlando from Lubert Adler, which gave the latter confidence it may be able to take West End off its hands, too.

But a Credit Suisse-led lending syndicate took possession of the remaining 1,476 acres at the former Ginn sur mer project after Ginn Development Company defaulted on its $276m loan.

It effectively inherited the real estate component of the Ginn project, and hired Replay Resorts to master plan that property. Lubert Adler and Credit Suisse have, though, worked together in the belief this is the best way to maximise their exit price - and potential recovery - by selling the former Ginn sur mer as one. It is unclear, though, if Kingwood was to acquire both pieces.

Hundreds of millions of dollars were invested in developing West End’s infrastructure prior to Ginn’s collapse, so any purchaser will inherit a foundation on which to build. Tribune Business understood this amounted to $200m in infrastructure spend, but was told by a source familiar with the project that the actual spend was closer to $523m.

They added that the former Ginn project’s core, featuring amenities such as the casino and marina, has to be developed all at once rather than in phases - something that will cost at least $200m-plus. And they suggested that “the money in that project” is to be made from the marina, which has the ability - at full build-out - to host up to 35 350-400 foot mega yachts at any one time.