NASSAU, Bahamas — Weeks after stating on August 4 that the parties involved in the sale of the Grand Lucayan resort in Freeport have agreed to a 45-day extension to “complete requisite legal documentation”, Lucayan Renewal Holdings Limited (LRHL) said on Friday that 45-day extension, which expired on September 15, had been for “due diligence” and, by virtue of this, the final closing date was also extended to November 15, The Nassau Guardian reported on Monday, September 26, in an article written by Candia Dames.
The new announcement of a November 15 closing date is a full two months’ extension from the closing announced by officials in May.
On May 11, Acting Prime Minister and Minister of Tourism, Investments and Aviation Chester Cooper announced that the government has agreed to sell Grand Lucayan to Electra America Hospitality Group for $100 million, adding that 2,000 construction jobs and 1,000 permanent jobs will be made available as a result.
Electra committed to a $300 million development of the property, which the Minnis administration bought from Hutchison Whampoa in August 2018 for $65 million.
LRHL, the special purpose vehicle set up to oversee the sale, said on Friday, “negotiations toward a successful deal on the Grand Lucayan resort continue to progress satisfactorily”.
Lucayan Renewal said, “It was announced in the first week of August in a joint statement with Electra America Hospitality Group that the due diligence period was extended by 45 days to September 15.
“By virtue of this, the final closing date was also extended to November 15, 2022. We note that the recent seven-day extension did not impact the agreed November closing date.”
It added, “We anticipate that the sales process will be completed consistent with our revised timelines. The Board of LRHL remains committed to ensuring that a credible plan and shared vision for the resort is realized – a plan that will provide jobs, entrepreneurial opportunities and strengthen Grand Bahama’s economy.”
LRHL also said, “We remain on track for a successful purchase and signing of a heads of agreement in the best interest of the people of Grand Bahama. There are matters connected to the transaction that are still being negotiated; we look forward to briefing the public as soon as negotiations are concluded.”
The recent statement did not include a comment from Electra.
In the August 4 statement, Russ Urban, CEO, Electra America Hospitality Group, said, “We are excited about Grand Bahama Island and, as we move forward with closing the deal, we reassure the people of Grand Bahama of our commitment to developing a world-class resort and collaborating on community development initiatives.” See complete article in The Nassau Guardian at https://thenassauguardian.com/grand-lucayan-deal-closing-put-off-by-two-months/
