The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The multi-billion dollar Genting Group is assessing various “potential business opportunities” in New Providence after being heavily courted by the Christie administration, Tribune Business has been told, with the Atlantis resort said to be among the options.

Following close behind the Malaysian conglomerate’s investment in Bimini Bay’s casino, sources close to developments said the Government had moved rapidly to interest Genting in potential resort and other investment assets in Nassau.

Describing the prospect of Genting’s deeper involvement in the Bahamas as “a huge coup” if the Government could pull it off, several sources suggested that assets of interest included Brookfield Asset Management’s Atlantis and One & Only Ocean Club resorts on Paradise Island.

Brookfield, which acquired the properties from Kerzner International in the much publicised debt-for-equity swap that resolved the latter’s $2.5 billion crisis, has only extended the original loan agreement with the other lenders until September 2014.

Many observers have interpreted that as a sign Brookfield is planning to exit the properties by ‘flipping’ them to another buyer, a tactic commonly used by private equity and hedge funds, whose main goal is to maximise their upside returns.

The loan extension is likely to have brought Brookfield and its fellow lenders some ‘breathing space’ in determining what to do with Paradise Island, but given their fear of Baha Mar’s arrival in December 2014 and the loan extension deadline, their intention seems obvious.

As a deep-pocketed conglomerate with substantial business interests in gaming, hotels, property and cruise lines, the attraction of Genting as a long-term owner of Atlantis and the One & Only Ocean Club is obvious - at least where the Government is concerned.

“All the senior guys from Brookfield were in this weekend, having meetings and showing people around. They just want to leave,” one source added.

Another added: “Genting is interested in the former Kerzner properties. There have been some initial talks.”

Neither of these developments could be officially confirmed by any of the parties involved, and another well-placed source suggested Brookfield was likely examining its options, including finding new equity partners for Paradise Island.

Genting is also unlikely to have given up on its mega resort and casino ambitions in Florida, but Paradise Island would represent an alternative, close base from which it could target the area’s gaming market.

One source said of Genting: “I know they’ve been looking at many places. I’ve been told they’re looking at particular interests on New Providence full stop. They’ve looked at a number of interests, Paradise Island and Baha Mar, but are just looking.

“They’ve been guests of the Government of the Bahamas and shown a number of potential opportunities. They’re reviewing them.”

Tribune Business was told that Tan Sri Lim Kok Thay, Genting’s chairman and chief executive, had visited the Bahamas twice in six weeks, once for the Bimini Bay deal and then for his birthday and meetings with the Government.

One source said it would be “a huge coup” and “a big plus” for the Bahamas if the Government could convince Genting to expand its investments here, pointing to its huge capital base and potential for further opening up the Asian tourist market via its distribution network.

“I think the Government sees Genting as an A1 investor with tremendous financial backing. I’m sure they’re courting them and encouraging them to look at more than just Bimini,” one source said.

Genting’s holding company, Genting Berhard, is said to be worth $11.3 billion on the Malaysian stock exchange. Its four subsidiaries, all listed either in Malaysia or Hong Kong, have market capitalisations ranging from $2.3 billion to $12.8 billion.