The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Prime Minister yesterday said talks with the Grand Lucayan’s potential purchaser have been “fruitful and progressive”, but added that the Government’s “requirements” must be met to seal a deal.

“We are still awaiting the potential purchaser to meet our requirements, and once they meet our requirements, we will go ahead,” said Philip Davis KC.

Responding to criticism by Opposition Leader, Michael Pintard, about the resort’s sale failing to materialise after he himself said on September 20 it would be completed “within the next two weeks or so”, he described the FNM as the “inferior negotiator”.

Asserting that the former Minnis administration agreed a “bad deal” when it acquired the property for $65m from Hutchison Whampoa’s real estate arm in September 2018, Mr Davis argued that the Opposition is in no position to “lecture” his administration on its handling of the sale.

“Don’t forget, first of all, they’re the one who made the bad deal to buy it; and buy it in circumstances that they clearly were the inferior negotiator, and they should be the last to speak about that,” said Mr Davis.

“What did they do when they had it? They bought it right at a price that we don’t think it was worth, and bought it with less assets than it really had. And I don’t want to speak on it because that’s looking backwards.

“They cannot lecture us on what we are doing. What did they do? Question asked. If we are failing, let them just wait and see. We could say they have failed. They have failed. We are still working. We still here.”

Mr Pintard had voiced frustration over what he described as the Government’s pattern of missed deadlines to sell Freeport’s largest resort property, arguing that the prolonged process has left Grand Bahama residents disappointed.

“Seemingly taking over from his deputy prime minister who could not close the deal, the Prime Minister three weeks ago assured the Bahamian people that the Grand Lucayan would finally, this time for sure, be sold within two weeks,” the Opposition leader added.

“That pledge followed more than two years of similar idle promises from this rudderless PLP regime. Yet to the surprise of no one, his earnest deadline has come and gone and still the people of Grand Bahama are left disappointed once again. The Grand Lucayan remains unsold.”

In August, Tribune Business reported that the hotel’s potential buyer plans to demolish all its existing properties to make way for three new hotel towers and two casinos as part of an investment that could hit $2bn.

Multiple sources, speaking on condition of anonymity, said the prospective purchaser is a US-based investor/developer with strong and already-existing casino industry links.  “It’s a little vague, but it’s a US-based company with casino connections,” one contact said. “They’re apparently going to knock all the hotels down and put up three towers and two casinos. If it’s true, it’s encouraging.

“It’s this big company, and they have big plans with the three towers. I don’t know why they would knock down the big hotel in the middle, which is the only one that has value.” Another source said of the buyer: “These aren’t people looking to try and find a demand. They have that demand. They are building a supply for that demand. These are real investors, real developers and people who have real money.”

Only one of the Grand Lucayan’s three resort properties, Lighthouse Point, is presently open to guests. Both Breaker’s Cay and the former Memories property have been closed for numerous years –– the latter ever since Hurricane Matthew struck the island in October 2016.