By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A Grand Bahama Port Authority (GBPA) purchaser wanted to double the island’s hotel room inventory by 2,000 rooms, and was even interested in negotiating with the Government to privatise Bahamasair.
Documents obtained by Tribune Business reveal that the group led by a member of the family that founded the world-renowned Ryanair airline, and a UK-based boutique investment house, wanted to work with the Government on a 10-year “comprehensive economic development plan” for Grand Bahama.
In reality, the ‘business plan’ being touted by Kell Ryan and Highgrove Securities was little different from previous proposals submitted for Freeport’s economic revival by the likes of Fleming Family & Partners (FFP).
An October 21, 2014, letter drafted by Highgrove Securities’ Simon Whittley talks of developing a variety of heavy and light manufacturing industries in Freeport, plus the agriculture and services sectors.
The document, addressed to Sir Baltron Bethel, Prime Minister Perry Christie’s senior policy adviser, was never sent, but gives Freeport’s 3,500 Grand Bahama Port Authority (GBPA) licensees and 60,000 residents an idea of the proposals being submitted by various would-be purchasers in a bid to determine their future.
The Ryan/Highgrove group proposed further developing Freeport’s existing petro-chemical, shipping and engineering sectors on the heavy industry side, plus green energy and light manufacturing.
Farming and horticulture were also on their menu, along with medical research and tourism, distribution and logistics, financial services, education, retirement homes and tourism and second home ownership.
“Highgrove would commission a master plan in conjunction with the Government to allocate land for specific development opportunities,” the draft letter said. “We have identified a number of locations that would be suitable for low density, five-star resort development aimed at the high net worth vacationers, and other areas which would ideally suit three and four-star hotel developments, adding in the region of 2,000 hotel rooms to the island’s capacity.”
The Highgrove/Ryan draft then pledged to work closely with resort and hospitality brands such as the Starwood Group, Hard Rock Cafe, Cipriani, Zuma, Le Petit Maison, Blue Marlin, Mr Chow and Nikki Beach.
The proposal said the group had identified land suitable for industrial, mixed commercial and horticulture use other than the 701-acre Sea/Air Business Centre.
Suggesting that they needed to further assess Freeport’s infrastructure needs, the Highgrove/Ryan proposal added: “One such priority already identified is to upgrade the Grand Bahama Highway linking the airport over the new bridge to the resort destinations east of the waterway, the building of a new international arrival/departure terminal (non-US destinations) at the airport, and to encourage a golf tourism upgrade and refurbish the four existing golf courses on the island.”
The draft letter suggested these projects could be started in tandem with the proposed master plan, and the report being produced by the Government by the McKinsey & Co consulting firm.
The Highgrove/Ryan proposal, known as ‘Project Sunrise’ and to be undertaken by a vehicle called Hawksbill Property Holdings Ltd, made little to no headway in convincing the GBPA’s principals, the Hayward and St George families, to sell.
Tribune Business revealed back in February that the St Georges were “very resistant” to the Highgrove/Ryan offer and “pretty dismayed by what has been presented”, questioning whether the prospective purchaser had both acquisition financing and the monies necessary to develop Freeport.
However, the individual trustees for the late Sir Jack Hayward’s family trusts, Ian Barry and Richard DeVries, appeared to have found a better prospect on whom they - and possibly the St Georges - seemed keen on dealing with.
That purchaser, as revealed earlier this week by Tribune Business, was BlackRock, a global private equity firm with more than $4.5 trillion in assets under management.
But, while the BlackRock deal seemed ‘hot’ in March-May 2015, the purported ‘removal’ of Mr Barry and Mr DeVries as trustees and subsequent new legal battle within the Hayward estate seem to have scuttled it and left Freeport with the opportunity cost of ‘what might have been’.
Kell Ryan, meanwhile, was interested in discussing more than just the GBPA with the Government. Based on his family’s aviation background, there is little surprise that the conversation also included Bahamasair.
“Highgrove/Ryan would be interested in discussing further a proposal to privatise Bahamasair,” the draft letter read.
“Ensuring sufficient airlift is a vital component in the drive to deliver economic growth. As Kell Ryan explained during our meeting, the effect on the local economy where Ryanair flies to is visible and measurable.
“The airport facilities need investment to include a new international terminal and enhanced cargo handling facilities to support the storage and distribution hub planned [at the Sea/Air Business Centre].”
Comments
Economist 8 years, 4 months ago
Read the Fleming plan and you will see a considerable amount of flam. Little substance.
Perfect partners for Babak and a disaster for Grand Bahama.
The_Oracle 8 years, 4 months ago
Easy to come up with plans when one looks at the infrastructure but Government idiocy and personal agendas/profit motive scuttle damn near everything. Is not the Government trying right now to convince Hutch property holdings to buy out the private ownership and turn the regulatory aspect over to them? What would happen then to the magic city? The private shareholders better watch out, it is fine to sleep in paradise when everything is great, foolhardy to do so when it is not.
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