The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The “Bahamian elite” were yesterday urged to consider buying Grand Bahama’s Deep Water Cay resort, with the area’s MP saying its sale called into question repeated Government boasts that it was on the verge of a $110 million expansion.

K P Turnquest told Tribune Business that Deep Water Cay’s buyer search contradicted claims by both Prime Minister Perry Christie and Dr Michael Darville, minister for Grand Bahama, that the resort was poised for major growth.

Speaking after the property’s sale was formerly disclosed, Mr Turnquest told Tribune Business: “It’s interesting when juxtaposed against what the Prime Minister and minister for Grand Bahama have been saying about the expansion of this property.”

Mr Christie heavily touted expansion and job creation at the east Grand Bahama bonefishing property during his mid-year Budget presentation back in February 2016.

He had spoken of a “$110 million expansion of the Deep Water Cay Resort at the eastern end of the island, which will create over 100 construction jobs between now and 2018.

“An additional 280 permanent jobs will come on stream when the resort, to be operated by the Six Senses brand, is completed.”

Tribune Business had been told at the time that the Government’s pronouncements were very premature, and Mr Turnquest said yesterday’s developments again raised questions about the accuracy of Mr Christie’s foreign direct investment (FDI) promises.

Pointing out that Deep Water Cay’s sale did not exactly indicate that an expansion was imminent, Mr Turnquest said the Prime Minister had “been prone to make these kind of grandiose promises”, only for little to materialise.

Colliers International, the Canadian-headquartered international realtor, which has marketed both Baha Mar and the British Colonial Hilton to potential buyers in recent years, has been hired to find a purchaser for the 91-acre Deep Water Cay.

Mr Turnquest told Tribune Business that it was important to find the right buyer for Deep Water Cay, which is a private resort island famous with sports and bone fishermen.

“It is my hope that we can interest some Bahamians in that property,” he said. “It is a very unique, upscale property that really has the potential to be developed into a world class destination, taking advantage of all the tourism opportunities that exist in Grand Bahama.

“Hopefully, some of the Bahamian elite who are in possession of the kind of funding and resources that can make this property grow will consider investing in Deep Water Cay and realise its full potential.”

Mr Turnquest described Deep Water Cay as one of eastern Grand Bahama’s key economic anchors and job creators, and expressed concern about potential disruption from the sales process.

“The reality is that Deep Water Cay is responsible for a significant amount of the economic activity and employment in the eastern area, so any disruption or slowdown of that property is going to have a significant effect on the community,” he said.

“Hopefully, they’ll be able to fund a buyer quickly, and the promised expansion takes off. It is very important to us. It is the main economic driver, and any disruption will not only disadvantage constituents in my area but the wider Grand Bahama economy. Bahamian lives are hanging in the balance, and it is not a comfortable place to be.”

Deep Water Cay Holdings, the current owner, was said to have invested $18 million in the property since acquiring it in 2009.

The property’s potential for expansion figures heavily in the Colliers ‘sales pitch’, with ‘approvals in principle’ said to have been given for a masterplan that would “reposition” Deep Water Cay via a “second luxury resort” and more overwater bungalows.

“The approval in principle calls for the construction of 68 resort units, 25 two and three-bedroom cottages, 23 custom-built residences, 20 overwater bungalows and expansion of the existing 4,200-foot runway and more,” the press release announcing Deep Water Cay’s sale said.

“The seller has masterplanned Deep Water Cay for a repositioning of the existing resort, adding a second overwater bungalows, platting residential lots and registering the lots for sale in New York, among other things.”

Mr Turnquest queried whether Bahamian realtors would be involved in Deep Water Cay’s sale, and allowed to market the property either by themselves or in a joint venture with Colliers.

Pointing out that real estate was supposed to be reserved for Bahamians only, he added: “It would be a shame if none of the local realtors gets a benefit from the transaction that will occur.”

The east Grand Bahama MP also questioned what will happen to the investment incentives already granted to Deep Water Cay by the Government in anticipation of its expansion.

“What happens to those concessions now the project presumably is not moving forward?” Mr Turnquest asked. “Will the Government dial back those concessions? How does that work now?”

Deep Water Cay was founded in 1958 by two fishing legends, Palm Beach guide, Gil Drake Sr, and ‘Field & Stream’ editor, A.J. McClane.  

“It’s already an extraordinary property today, but the opportunity for development is huge,” said Colliers International’s South Florida broker, Rich Lillis.  “It’s almost an extension to the South Florida fishing and tourism communities, just a short 40-minute flight away.”   

Located in the proposed 188-square mile East Grand Bahama National Park, a marine preserve, Deep Water Cay has more than 2.5 miles of beachfront.  

“The vision for the property is two luxury resorts, one with overwater bungalows and partial overwater spa, and the other as Fisherman’s Village Resort,” explained Kent Schwarz of Colliers International Hotels.

“Key approvals in principle are in place, and a Heads of Agreement is being finalised that will allow the transfer of these approvals to new ownership. These factors provide Deep Water Cay with the unique marriage of expansion and development opportunities with protected views and marine habitat.”