By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Opposition’s finance spokesman yesterday accused the Prime Minister of “deflection” after he failed to answer how much of the $120m Grand Lucayan sales proceeds have been paid to the Government.

Kwasi Thompson, the east Grand Bahama MP, told Tribune Business that Philip Davis KC “didn’t answer the question” he posed during the 2025-2026 Budget debate over how much of the purchase price for the resort has yet to be received from the Miami-headquartered purchaser, Concord Wilshire.

The former minister of state intervened on a ‘point of order’ after Mr Davis, in leading off the Budget debate in the House of Assembly, confirmed that legal fees and other transaction closing costs will be deducted from the purchase price by Lucayan Renewal Holdings, the special purpose vehicle (SPV) that holds the hotel on the Hotel Corporation and the Government’s behalf.

However, the Prime Minister’s remarks provided little to no additional details on the resort’s sale, and nor did they address Mr Thompson’s questions over whether the Government has received the full $120m purchase price and, if a balance remains outstanding, when this will be paid.

Describing public commentary on the Grand Lucayan’s sale as “very interesting”, the Prime Minister said: “Let me provide some clarity around the issues. The Grand Lucayan is not directly owned by the Government of The Bahamas. They [the Opposition] should know that. They ought to.

“It’s owned by a subsidiary of the Hotel Corporation of The Bahamas, Lucayan Renewal Holdings. It was a vehicle created by you, the FNM. This entity was established to oversee operations and the sale of the hotel.

“Once the sale of the hotel is finalised, initial proceeds will be transferred to Lucayan Renewal Holdings. The initial use of these funds would be to settle expenses such as legal fees and other closing costs, including other pre-sale expenses,” Mr Davis added.

“Once all these costs are settled, the residual amount will be transferred to the Hotel Corporation. I am surprised that members of the Opposition seemed unaware of this, given that they were the ones who bought the hotel in the first place and incorporated Lucayan Renewal Holdings.”

Intervening, Mr Thompson asserted: “Let me make it abundantly clear. We are aware. What is more important is has the Government actually received the $120m as was reported? How much of the $120m was received? That’s the ultimate question.

“It makes little sense... The question Grand Bahama is seeking to answer is, if you made a deal for $120m, how much of the $120m was received and when are you going to receive the balance? That’s the ultimate question.” Mr Davis then seemed to refer to a letter sent to him by Michael Pintard, the Opposition’s leader, on the Grand Lucayan but which he had personally not received.

The exchange ended without answers to Mr Thompson’s questions. But well-placed Tribune Business sources, speaking on condition of anonymity, said the Heads of Agreement signed between Concord Wilshire and the Government have yet to be released because numerous underlying agreements involving the developer’s Grand Lucayan partners are still being finalised.

Disclosure now, this newspaper was told, could impact sensitive negotiations with the likes of timeshare, gaming, and golfing partners, but “a public announcement will come in short order. They are all going to be released soon enough”.

It is understood that some, but not all, of the $120m purchase price has been paid to-date, with the Heads of Agreement involving a number of stages where both Concord Wilshire and the Government both have to fulfill their commitments and obligations before it progresses to the next phase.

The Government is thought to have been subsidising the Grand Lucayan’s operations by between $1.2m to $1.5m per month ever since it acquired the resort from CK Property Holdings, Hutchison Whampoa’s real estate arm, six-and-a-half years ago.

Some $17.882m was used for this purpose during the 2022-2023 Budget year and, during the first nine months of the following fiscal period, $16.632m out of the $17m allocated was spent on subsidising the Grand Lucayan. A further $17m was estimated for the current 2024-2025 fiscal year, meaning that the $120m purchase price is unlikely to fully recoup the Government’s holding costs pegged at $63m.

The Grand Lucayan sale includes the 56-acre beachfront resort along with the adjacent 160-acre Reef Golf Course.

The developers say the revived property will feature seven major resort components, including three new hotel buildings and branded timeshare units. Other features include a 35-acre cruise destination open to all cruise lines and guests, a 25,000 square foot indoor/outdoor casino, the conversion of the Reef Golf course to a 160-acre Greg Norman signature golf course, and a 16-slip mega-yacht marina.

Construction is expected to begin within 90 days of obtaining the necessary permits and approvals. The project will be rolled out in phases, creating 1,320 construction jobs and 1,750 permanent positions once the resort is fully operational.