The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A UK investor has finally closed his long-awaited $5.5 million purchase of Freeport’s Port Lucaya Marketplace, the Prime Minister has disclosed.

Perry Christie, in little-noticed segment of his mid-year Budget debate closing, confirmed that Peter Hunt had completed its acquisition from the Grand Bahama Port Authority’s (GBPA) Bourbon Street Ltd affiliate.

“The Port Lucaya Marketplace, which was recently sold for $5.5 million, will also now undergo significant upgrades, creating additional jobs and entrepreneurial opportunities,” Mr Christie said.

Sources familiar with the situation subsequently confirmed to Tribune Business that the necessary government approvals for Mr Hunt’s acquisition had ultimately been forthcoming, despite a wait of several months.

“Peter Hunt has bought it. They have a lot of plans, and they want to do a lot for Freeport,” one contact, speaking on condition of anonymity, told this newspaper.

Tribune Business revealed last September how the Government was then “finalising” approvals for Mr Hunt’s purchase of what is arguably Freeport’s leading retail and dining location.

However, the approval process then seemed to stall. Khaalis Rolle, minister of state for investments, disclosed to this newspaper at the time that there were some in the Christie administration who felt the Port Lucaya Marketplace should be acquired by a Bahamian investor group rather than a foreigner.

However, despite the delay, the Government has finally come through for Mr Hunt.

Port Lucaya Marketplace features 40 stores and boutiques, 14 restaurants, six bars and three late night bars/lounges, plus three watersports operators.

Targeted at stopover visitors from the Memories and Grand Lucayan hotels, plus guests at other Freeport resorts, cruise ship passengers and locals, the Port Lucaya Marketplace also has room for 110 straw and authentic Bahamian craft vendors.

However, one source told Tribune Business that the Port Lucaya Marketplace’s value had declined significantly since the turn of the century - benefting Mr Hunt, but not the GBPA vendors.

“Fourteen years ago, that was worth $20 million,” the source said. “It’s full of tenants who can’t afford to pay their rent.”

The Prime Minister, meanwhile, once again reiterated he is pinning his economic recovery hopes on a resurgence in foreign direct investment (FDI) plus the Chinese.

The projects he referred to in his mid-year Budget closing, while touting the creation of 7,500 to 8,000 new construction and permanent jobs for Bahamians in 2015, largely consist of existing developers making further investment or upgrades by new owners.

Baha Mar will account for the ‘lion’s share’ of the new employment via 5,000 full-time jobs, with the key ‘new’ project being China State Construction’s development of the five-six acres immediately adjacent to its new property, the British Colonial Hilton.

Describing a $200 million expansion that will be completed over the next 20 months, Mr Christie said: “The project will include 94 condos and an 82 key hotel, six theatres, a skyline nightclub and roof-top bar, restaurants, 50,000 square feet of retail shops, amphitheatre, office centre, entertainment facilities, car park, 100-slip marina and boardwalk.

“The project will provide 200 new construction jobs for Bahamians, and will support 500 new permanent jobs on completion, in addition to the 277 staff presently employed at the hotel and commercial centre.”

Mr Christie’s address did not break down the 7,500-8,000 ‘new jobs’ between construction and permanent. However, given that a healthy construction industry is vital to soaking up illiterate and semi-literate workers, the Government will have to keep the FDI project pipeline moving beyond this latest round.

The Prime Minister, confirming that Access Industries has plans for a $50 million expansion of Paradise Island’s One & Only Ocean Club, said: “The first phase will include a $12 million renovation of the Hartford Wing this summer, with 35 construction employees, adding $1.2 million in taxes through VAT and Business Licence collections, and will maintain current levels of employment of 435 staff following the renovations.”

Mr Christie said Atlantis’s owner, Brookfield Asset Management, invested some $21.4 million in capital improvements last year. It is planning to add 183 jobs as a result of casino gaming reforms and new restaurant additions.

With the former Paradise Island Harbour Resort set to re-open under new owner, Warwick International, and $5.7 million spent on upgrading Comfort Suites, the Prime Minister said Paradise Island has enjoyed more than $37 million worth of hotel upgrades.

Focusing on western New Providence, Mr Christie said Albany’s $140 million expansion had created 800 construction jobs.

This project will be completed by 2015’s end, and the high-end community will soon add 34 full-time jobs, taking permanent employees to 487.

“This number is expected to expand by 300 over the course of the next three years,” Mr Christie said.

“Also in western New Providence, my Government recently approved the $17 million acquisition by members of the Lyford Cay community of the Lyford Cay Shopping Centre, for the construction thereon of high-end office buildings, retail shops, luxury townhouse and villa residences, memorial park and police station.

“As this project gets underway it will stimulate further economic activity in the western District of New Providence, creating additional jobs and entrepreneurial activities in the near future.”

As for Abaco, Mr Christie said: “The owners of the Baker’s Bay Golf and Ocean Club have 34 new residences currently under construction at a cost of $150 million, and another 30 coming on stream this year subject to manpower availability.

“This critical mass will significantly raise the profile of Abaco and expand employment from the current 796 to 911 by year-end.

“Additional development is planned, with 90 more residences proposed for build out over the next two years. Some 250 additional construction jobs plus a significant number of new operational jobs are projected over the next two years.”