By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government is moving rapidly to seal the Grand Lucayan’s sale to a $10bn Miami-based developer with hopes for a Heads of Agreement signing as early as this Thursday.

Multiple sources, speaking on condition of anonymity because they are not allowed to comment publicly, told Tribune Business that the Davis administration and representatives for Concord Wilshire, the prospective “master developer” for Grand Bahama’s ‘anchor’ resort property, are in the final stages of reviewing legal documents in anticipation that a deal could be closed imminently on May 15.

This newspaper was told that Concord Wilshire, which has acquired or undertaken several Florida-based resort renovation projects worth hundreds of millions of dollars during its 33-year history, has teamed with multiple development and operating partners to transform the Grand Lucayan site into a six-resort property akin to Atlantis and Baha Mar.

“I think they’re coming to a head on this,” one source told this newspaper of talks between the Government and Concord Wilshire. “They’ll be ready to sign on the 15th. All the legal documents are under review. Generally, it’s all good. Yes, it’s what Grand Bahama and Freeport need, yes, they do have the money, and, yes, they have the partners.”

Confirming that companies spearheaded by Australian professional golfer, Greg Norman, will be involved in designing and managing the new resort’s golf courses, the source said Concord Wilshire has involved numerous partners for the planned resort properties that include hotels targeted at casino, golf, marina, fractional and timeshare ownership, and other tourism niche markets.

“It’s a true mixed-use resort,” they said. “The first time Freeport has had that concept all managed under one head. There are six different resorts - the golfing resort, gaming resort, a timeshare component including fractional. It’s the first time that Freeport will have a true, distinct, varied destination that we have looked for for so long, and not depend on one single entity.

“The idea is that Concord Wilshire will have their own money, self-finance, and bring the best brands. They are not only talking it, but actually doing it. It’s an Atlantis merged with Baha Mar, but dialled in for Freeport in a way that is proportionate but required. It gives the city the sustainability it’s not had for years.”

Resolving the Grand Lucayan’s fate, and securing a buyer who could do for Freeport what the late Sir Sol Kerzner achieved for Nassau and the wider Bahamian tourism product, is viewed as vital to reviving both the second city and wider Grand Bahama economy through providing the necessary room inventory to attract greater airlift to the island.

Many Grand Bahama residents and other observers, sceptical after both the Royal Caribbean/ITM Group and Electra America purchase offers foundered, will likely only believe a Grand Lucayan deal has been achieved when they see it. However, Among  understands a sales agreement has been signed, and a deposit paid and in place, for many months.

Tribune Business previously reported that the purchaser is represented by Thomas Dean, of the Dupuch & Turnquest law firm, while attorney Donna Harding-Lee is acting for Lucayan Renewal Holdings, the Government-owned special purpose vehicle (SPV) that was used to acquire the resort in September 2018 from Cheung Kong Property Holdings, the real estate arm of Hong Kong conglomerate, Hutchison Whampoa.

The Grand Lucayan was acquired from Cheung Kong (CK) Property Holdings by the Minnis administration for $65m to head-off the resort’s threatened closure by its former owner.

Efforts to find a private buyer for the resort, including the Royal Caribbean/ITM Group deal submitted to the former administration and the bid by Electra America Hospitality Group, have thus far failed to secure a purchaser. And, in the meantime, the Bahamian taxpayer has been forced to subsidise the Grand Lucayan’s annual losses to sustain its operations.

The 2024-2025 Budget provides a $17m subsidy for the resort and its immediate holding company, Lucayan Renewal Holdings, which matches the current fiscal year’s allocation. However, the $17m provided for the 2023-2024 Budget year was virtually exhausted at end-March 2024, with some $16.632m having been spent, meaning that Bahamian taxpayers will almost certainly incur cost overruns.

And, given that the Government provided Lucayan Renewal Holdings with $17.882m in the 2022-2023 fiscal year, the resort is set to cost taxpayers close to $54m by the time the upcoming fiscal year closes at end-June 2025. Given this subsidy run rate, taxpayer exposure to the Grand Lucayan now likely exceeds $200m with much of this sum unlikely to be recovered via a sale.

Among the projects that Concord Wilshire has been involved with is the development of the Diplomat Golf Resort on Hallandale Beach, Florida, featuring 938 hotel keys and 250 residential condo units in partnership with Greg Norman’s company, which handled the golf course revamp. The entire project involved a $548m revamp.

Other Florida resort developments include the Diplomat Resort on Hollywood Beach, featuring 1,000 hotel keys and 200,000 square feet of meeting space, in a $535m investment that also had connections to Atlantis owner, Brookfield.