By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A BAHAMIAN developer yesterday said it plans to "go vertical" on its $250 million Hurricane Hole redevelopment within 12 months, after completing the property's purchase from Atlantis's owner.

Bill Green, president of Sterling Global Financial's development arm, told Tribune Business that between 80-85 per cent of the "large scale mixed-use" project will be devoted to owner-occupied residential units.

Estimating that the 13-acre site could feature up to 200 such units at full build-out, Mr Green said the new owner was seeking to create a development that would leave residents and visitors "optimistic about the future of the world" through its embrace of technology and Bahamian architecture.

The remainder of the project will feature retail, restaurant and office space, but the Sterling Global Development chief emphasised that the former would feature stores specially selected to ensure they did not compete directly with Paradise Island and Atlantis's existing offerings.

Mr Green also said Hurricane Hole's existing 90-slip marina will be upgraded, through repairs to sea walls and docks, and used to provide the developer with cash flow and time while it masterplans the main development.He added that the project, which will be built out over a five-year period, would help to attract additional visitors to the Bahamas in addition to providing hundreds of construction and full-time jobs.

Tribune Business exclusively revealed Sterling Global Financial's planned Hurricane Hole acquisition two months ago, and the acquisitive real estate financier and developer, based on East Bay Street, yesterday confirmed the deal closed last week. "We are starting to masterplan immediately," Mr Green told Tribune Business. "The intention is to have a large-scale, mixed-use project which incorporates commercial, retail and residential.

"Our retail is intended to be complementary to what is already on Paradise Island as opposed to competitive, and will be aimed more at the local market as opposed to the destination market. "It's a tremendous location, and with Atlantis next door, that has worldwide brand recognition. Then there are the number of people who live here and work here."

Disclosing that Sterling is "targeting a very aggressive timeline" with the project, Mr Green said it would spend the remainder of 2018 on completing its masterplan, obtaining the necessary planning and construction permits, and releasing designs to potential real estate buyers and tenants so it can begin its pre-sales campaign.

The developer wants construction activity to start "as soon as possible", and Mr Green added: "We will start with repairs and improvements to the existing marina. Small things like the sea wall, some of the docks can be improved.

"We'll do that, and the rest will be all new construction. It's clear we can benefit by investing in the marina, expanding the business, which will give us the time to plan for real estate and go into the ground on vertical product for January 2019.

"One of the things we really like about the place is the existing marina, which has a long history and good brand recognition in the marketplace. It will provide cash flow as we go into the planning phase. The land will not have to sit unproductive as we prepare for the next phase."

The 13-acre Hurricane Hole site is one of the few remaining Paradise Island land parcels available for commercial real estate development, and its strategic location - on the Nassau harbourfront next to the 'off' bridge - will have been a further attraction to Sterling Global Financial and its principal, David Kosoy.

The developer will also be starting with a 'blank canvas' given that the former shops and restaurants that occupied the site were demolished by former Atlantis owner, Kerzner International, when it harboured redevelopment ambitions similar to Sterling's. This means the latter will not incur any demolition and site clearance-related costs.

Mr Green said Hurricane Hole's real estate options will be targeted at owner-occupier purchasers rather than the tourism market. "The majority of the project, and it will probably be about 80-85 per cent of the total, will be issued to residential," he told Tribune Business.

"We have the capacity to do over 200 units. We've done our pro forma. We did that a while ago. It's about $250 million in sales."

Mr Green said Hurricane Hole would provide badly-needed new inventory for the Bahamian real estate market, providing potential investors with fresh product and options that will generate increased business for this nation.

"I tend to think these developments are accretive to Nassau and the Bahamas as a whole," he explained. "The real estate market on a worldwide basis does not have a fixed allocation that comes to the Bahamas.

"The market is so vast relative to the Bahamas that the more business going on in the Bahamas, the greater the share of world traffic it can garner."

Mr Green declined to identify the real estate 'price points' that Sterling will offer, although "there's opportunity at all ends of the market" - from the luxury to very lowest.

As for Hurricane Hole's target office tenants, he added that Sterling was seeking "a combination" of established professionals, small businesses and entrepreneurs who would be willing to share administrative facilities.

Particular emphasis will be placed on technology-related businesses, and Mr Green said: "We want energy and the place to be fun. Just to be at the forefront of technology - what can be done technologically with the project - everything from electric vehicles, green energy and having technology run an office space."

Acknowledging that it "sounds wildly idealistic", Mr Green said Sterling wanted persons who lived and worked at, and visited, the revamped Hurricane Hole to "be very optimistic about the future of the world" as a result of the developer's efforts. He added that this was energising and motivating the group's enthusiasm for the project.

While declining to provide specifics on the number of construction jobs that will be created, the Sterling Global Development president said "an average residential unit" generated work for 60 different companies - including suppliers, infrastructure contractors and tradesmen.

He added that the Hurricane Hole revitalisation will "pay homage to the history of the Bahamas" and local architecture, while combining with modern design elements that sophisticated world travellers are accustomed to.

Declining to reveal the purchase price paid to Brookfield Asset Management, the Atlantis owner, Mr Green added: "What I can say is that we had a savvy seller in Atlantis Brookfield, and savvy buyer in Sterling, and we reached a position of equilibrium and were able to conclude a deal on that basis.

"It's going to be fun. We're looking forward to a great year

Mr Kosoy, the near-$10 billion asset manager's chairman, said in a statement: "This is a landmark day for Sterling Global Financial.

"We have a great vision for development of the entire site with mixed-use residential, office space, a financial centre, retail and dining. We will also be rejuvenating the marina, injecting it with greatly-improved amenities to create a world-class luxury yachting and charter boat experience. Once underway, the project will provide hundreds of construction and professional service jobs over a five-year period."

Mr Kosoy suggested the deal would be a 'win-win' for Atlantis, adding: "Residents and marina guests will be new business for Atlantis, with all its excellent dining options and amenities, and the world-famous resort will be a draw for our guests. We look forward to a mutually beneficial and enjoyable relationship."

Sterling Global Financial has financed Bahamas-based projects such as THIRTY SIX on Paradise Island, Beach House Villas, Courtyard by Marriott and Ocean Terraces.

It is also considering major Family Island developments on Matt Lowe's Cay, Abaco, and at Sky Beach, Eleuthera. It has funded projects in Ireland and London, and recently funded a share of the land acquisition for a major redevelopment of an iconic neighbourhood in South Boston.