The Tribune

A luxury residential resort developer believes its Abaco acquisition has “everything money can’t buy”, as it moves to realise on the property’s original vision.

Southworth Development has made The Abaco Club on Winding Bay its second Bahamian resort development, following its PGA Village project on Cat Island.

Headquartered in Massachusetts, Southworth teamed with a group of Abaco Club homeowners to purchase the property from Marriott Vacation Worldwide, in what sources suggested was a $30 million deal.

This is not far from the $28 million price that Marriott previously sought, when it offered the Abaco Club to a homeowners group some 13 months ago.

At the time, the homeowner group, which was embroiled in litigation against Marriott Worldwide, said it did not believe the Abaco Club was worth ‘anywhere near” that sum.

In that lawsuit, the Abaco Club homeowners were seeking a court injunction barring Marriott Vacations from selling the property, based upon their claimed rights with respect to acquiring lots/homes there.

The homeowners had alleged that in its $28 million offer notice, Marriott Vacations did not disclose deferred maintenance obligations; liabilities for membership deposits and underfunded reserves; or future capital injection requirements, which the members believe substantially affect the club’s marketability and value.

More than 30 owners were participating in the lawsuit against Marriott Vacations and The Ritz-Carlton Hotel Company, alleging “desertion” of the property. They had been seeking $10 million in damages.

Happily, that all seems behind the parties now. Southworth said the purchase was an “all cash” deal.

“The Abaco Club has everything money can’t buy,” said David Southworth, president and chief executive of Southworth Development.

“It’s a gorgeous setting, with a well thought-out master plan and a passionate membership. It’s a perfect complement to our existing properties and we look forward to taking this world-class facility to an even higher level.”

Southworth is planning a multi-million dollar renovation of the existing facilities that is set to begin immediately. A new golf practice facility will be added, along with a new marina and boathouse.

There was a suggestion that Southworth is planning for an extra 150 homes to be constructed at a cost of $348 million.

Khaalis Rolle, minister of state for investments, told the Abaco Business Outlook conference in September 2014 that Southworth Development had a a $123 million investment budget earmarked for the Abaco Club.

He added that the Winding Bay-based property would have a total residential construction value of $225 million at full build-out, stating: “The total projected expenditure related to the project is conservatively estimated at $348 million.”

Originally developed by Peter de Savary, the Abaco Club opened in December 2004. In 2008, a Marriott affiliate acquired the property and it was then managed by the Ritz-Carlton.

Michael McCormick, spokesperson for the homeowner consortium partnered with Southworth, said: “We have found the perfect partner in Southworth. Their track record of investing in and developing world-class communities offers us a real sense of security that The Abaco Club on Winding Bay will become the pinnacle of barefoot luxury in the Bahamas.

“Southworth’s 20-plus-year track record speaks for itself, and we are delighted to be joining with them to make an already special place even more desirable.”

Prime Minister Perry Christie said: “We welcome Southworth Development’s involvement in The Abaco Club on Winding Bay and look forward to working with such a renowned group.

“Renewed interest and long-term investment in the property will benefit Great Abaco and the Bahamas in the form of increased home building, tourism and jobs. “

The Abaco Club will be offering three home ownership opportunities, including one-bedroom Cabanas; two-to-four-bedroom custom Cottages and beach-front estate lots. The club will also operate a rental programme which will offer various member homes for temporary use.