The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The buyer for Abaco’s Treasure Cay resort is seeking to raise more than 92 percent of its target $65m equity capital from other investors while only committing $5m of its own funds, documents have revealed.

GreenPointe Holdings financing plans are disclosed in a private placement document, obtained by Tribune Business, that seeks to solicit the interest of potential investors even though the actual purchase of the 1,400-acre property’s undeveloped land from the Meister family has yet to close.

While the developer signed a Heads of Agreement with the Davis administration for Treasure Cay’s redevelopment in September 2024, the offering memorandum makes clear that - while the purchase is “under contract” - its closing is subject to Jacksonville-based GreenPointe obtaining the necessary permits and approvals to proceed with the project. As a result, work will likely not begin until the 2025 third quarter.

GreenPointe is seeking to raise a total $121.406m to cover the costs associated with the first two years of redevelopment work, according to the offering document. The total $65m equity capital will account for some 53.5 percent of this total, with the balance generated from a combination of residential real estate and marina slip sales, plus operating revenue from Treasure Cay’s club.

Detailing how the $121.406m will be used, the GreenPointe offering document discloses that some $25m or 21 percent will be spent on “Treasure Cay acquisition”. This is the line item representing the largest use of the $121.406m proceeds, and appears to signal that other investors - as well as real estate and marina pre-sales - will finance the development’s purchase from the Meister-owned Treasure Cay Ltd. 

Gaynelle James, GreenPointe Holdings’ marketing director, referred this newspaper to Edward Burr, the developer’s chairman and principal, after it submitted questions on the private placement offering’s structure and progress in obtaining all the necessary government planning, environmental and other approvals required.

Mr Burr, in a messaged reply yesterday evening, said he was in Colorado about to travel to Costa Rica and would try to call this newspaper today. However, neither denied the authenticity or accuracy of the offering document, nor its existence, with other sources familiar with Treasure Cay developments confirming that it is genuine and dated March 4, 2025.

Indeed, the penultimate page details that “outside investors” - likely including existing Treasure Cay homeowners - are being targeted for $60m of the $65m in equity capital, with GreenPointe Holdings set to contribute the $5m balance.

Investors must inject a minimum $500,000 and, if they invest $1m-plus, they will get “added benefits” such as preferential treatment in real estate offerings and “lifetime membership at the Treasure Cay Club” without having to pay dues or initiation fees. A schedule setting out how investors are to be repaid is also detailed with talk “of a return equal to 18 percent per annum”.

Besides the $65m in equity ownership capital, GreenPointe is projecting that it will raise the balance of its financing needs for the first 24 months’ build-out from $41.954m generated by “net residential revenue” and a further $4.272m in marina slip sales income. The Treasure Cay Club’s operating revenue will provide the final $9.71m.

Apart from funding the $25m “acquisition”, GreenPointe’s offering document says it plans to split the proceeds between an $18.943m spend on “master infrastructure”; $12.59m on “residential infrastructure”; just over $20m on marina construction; $14.131m on a golf and racquet club; and $12.851m on the marina village and beach club’s first phase; with the balance committed to “soft costs” and a reserve “contingency”.

Prior to obtaining the private offering document, Tribune Business had been receiving mixed views on GreenPointe’s purchase and plans. While some have asserted that the developer is merely waiting for the necessary government approvals and permits to proceed, others familiar with Treasure Cay have voiced concerns that the development plans may have been scaled back and that little visible progress has been made.

The fact the developer appears to be looking to outside investors, including existing Treasure Cay homeowners, to provide the bulk of the equity capital and finance the project’s purchase from the Meister family is understood to have added to the unease for some - especially since GreenPointe has yet to close the acquisition.

“GreenPointe Holdings is under contract to acquire full ownership of Treasure Cay Ltd, the Bahamian entity that currently holds the majority of real estate in Treasure Cay,” the GreenPointe offering document states. “As part of the purchase process, GreenPointe Holdings has submitted and received conditional approval from the Bahamian government to proceed with the acquisition.

“Additionally, GreenPointe Holdings and the Bahamian government have reached agreement on the Heads of Agreement, the major governing document required to purchase and develop real property in The Bahamas. Since reaching agreement on the Heads of Agreement, we have been working with the various agencies in The Bahamas to finalise remaining terms with such agencies to commence development..

“While the timeline is subject to regulatory approvals, GreenPointe Holdings anticipates securing the necessary permits to complete the acquisition and begin development in the 2025 third quarter.” GreenPointe Holdings’ glossy presentation described Treasure Cay as featuring 1,200 residences and a 150-slip marina prior to Hurricane Dorian’s arrival in September 2019.

Pledging to “revive Treasure Cay by boosting tourism and enhancing local lifestyles”, the developer showed renderings that incorporate an industrial park as well as 305 home sites, 470 condos and multi-family residences and “two potential hotels”. The promised amenities featured a golf club, beach club, wellness retreat and spa, and restaurants.

GreenPointe, according to the timelines detailed in the offering document, is planning to start with infrastructure, amenities and the initial residential real estate later this year before progressing to other real estate components with a construction/development completion timeline of 2033. However, while “resort residences” were mentioned, there was no explicit reference to any hotel.

One Treasure Cay source, who was aware of GreenPointe’s financing plans, said on condition of anonymity: “My understanding from both sides is that the deal is not off but there are some financial concerns.. We have not heard or seen anything; any movement, which should be noted and of concern.

“When Mr Burr came to Treasure Cay last April he gathered 30 community leaders for a private presentation of his intentions. It was a very extensive briefing with renderings, drawings and timelines. It was a very substantive briefing but I will tell you that none of that seems to be the same today. I don’t think it’s progressed. The components are not the same or aligned with what was presented a year ago.

“The deal is still a number of months away, which is concerning. It has changed a lot and you’ll find there’s a private offering being made to raise capital. It all looked good on paper. A year ago I was extremely optimistic. I’m not that way now for good reason.”

However, Bill McLean, head of the 120-strong Beach Villas Owners Association, the largest homeowners group on Treasure Cay, told Tribune Business that Mr Burr and GreenPointe were wise to not close the purchase with the Meisters until they were convinced all the necessary permits have been obtained.

“We’ve also heard GreenPointe will close when it has all the permits in hand,” he explained. “If I was a developer I would feel the same way. Especially in The Bahamas, one would be wise not to close until you have all the permits in hand. My sense right now is that it’s the issue of the permits. I have every reason to believe that is the case.

“What I’m hoping is that the Government should have every good reason to move this thing along because the loss of employment in North Abaco has been critical, and it has gone on way too long. It seems to me that the Government is in a position to move these approvals along because this really does mean hundreds of jobs for North Abaco, not just in construction, but hotels, the marina and restaurants.”

A January 23, 2025, update issued by the developer to Treasure Cay residents affirmed the project is a “primary focus” and that it was working to obtain the required government approvals.

Promising that it is “dedicated to rejuvenating this beloved destination”, and that “a bright future awaits”, GreenPointe Holdings said it was working with Bahamian consultancy, BRON, to develop the necessary environmental studies and apply for the relevant permits. It is also working with other consultants on project design and the marina.

“GreenPointe has engaged BRON, a Bahama-based environmental consultancy, to secure the necessary environmental approvals. These approvals will ensure the redevelopment meets all regulatory standards while safeguarding the natural beauty of Treasure Cay,” GreenePointe said.

“Additionally, the Department of Environmental Planning and Protection (DEPP) will soon visit Treasure Cay to work with GreenPointe to ensure a balance between responsible development and environmental preservation.

“GreenPointe is collaborating with Cummins & Cederberg, marina design experts, to restore Treasure Cay’s iconic marina. The renovation will involve replacing bulkheads and enhancing navigational channels to ensure safe and efficient water access. Upon completion, the marina will once again serve as a vibrant hub for boating and marine activities in North Abaco, benefiting the local economy and lifestyle,” it added.

“OBMI, the design team working on the project, is making significant progress on phase one of the redevelopment. While specific details remain forthcoming, GreenPointe has confirmed that the plans are moving ahead smoothly. Phase one will focus on creating a balanced mix of residential, commercial and recreational spaces, laying the groundwork for Treasure Cay’s future growth.”

Pledging that a ground-breaking for the project will occur this year, GreenPointe said that besides redeveloping Treasure Cay’s golf course it is also working with “Caribbean Civil Group, Water and Sewerage Corporation and Bahamas Power & Light (BPL) to finalise critical infrastructure upgrades, including utilities and services”.

“2025 is off to a strong start, and we’re thrilled with the progress in revitalising Treasure Cay,” Steve Griggs, development manager at GreenPointe, said. “We’ve engaged a team of expert consultants to guide the planning and permitting phases, paving the way to break ground later this year.”