NASSAU, Bahamas — Speaking yesterday about the collapse of the deal he announced in May for the government to sell Grand Lucayan Resort to Electra America Hospitality Ltd. (EAHL) for $100 million, Acting Prime Minister Chester Cooper said the art of making a deal is knowing when to move on, and he indicated the government will not name another buyer for the Freeport property until it actually has a final agreement, The Nassau Guardian reported on Wednesday, November 9, in an article written by Jasper Ward.
Cooper said Electra consistently asked for more time.
“We cannot continue to delay, delay,” he told reporters ahead of the weekly Cabinet meeting. “… There [is] credible interest from potential buyers for the resort. We began those conversations.”
Lucayan Renewal Holdings Limited (LRHL), the special purpose vehicle established to sell the property, announced the collapse of the deal in a statement on Monday night.
That statement came six months after the government announced that it had selected Electra as the purchaser and that the developer had committed to a $300 million redevelopment of the resort.
Cooper said in May Electra will create 2,000 construction jobs and 1,000 permanent jobs. He said at the time the government “truly” believed that Electra will be good for Grand Bahama.
Officials said there would be a 60-day due diligence period and a closing within 120 days.
But Lucayan Renewal Holdings made multiple announcements regarding the extension of the due diligence period.
On Monday, Lucayan Renewal said it continues to work toward successfully closing the sale of the resort to secure the best outcome for Grand Bahama and the Bahamian people.
“Electra America Hospitality Ltd. was chosen overall for its vision and experience and evidence of financial backing,” it said.
“EAHL has advised that shifting global capital markets and related inflationary pressures resulted in higher construction costs and costlier access to credit.
“Accordingly, the company had difficulty securing development financing at terms that would allow it to fully execute the vision outlined in its business plan.” See complete article in The Nassau Guardian at https://thenassauguardian.com/grand-lucayan-buyer-wont-be-named-until-definitive-deal-sealed/
