The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

RoyalFidelity has been hired to raise $10 million in financing for Sir Franklyn Wilson’s partnership with Tiger Woods in the Jack’s Bay development, Tribune Business can reveal.

Sir Franklyn confirmed the move to Tribune Business yesterday, adding that the project “represents a new day for Eleuthera” following recent developments that will aid its progress.

The Sunshine Holdings chairman was speaking after he and his fellow investors hosted an event at Jack’s Bay, for which Mr Woods was present, on Wednesday. Guests included Bahamas residents, including capital markets players, and persons from abroad.

He added that the project would “not be interested in raising less” than $10 million via RoyalFidelity, and suggested that Jack’s Bay might seek more depending on market appetite.

“I can confirm that we have retained a corporate finance house to provide investment banking services for us,” Sir Franklyn told Tribune Business. “They have reported to us a degree of confidence that the offering, when made, will probably be well received.

“That was before some more recent developments that the public will learn about very shortly, and which we firmly believe represent a new day for Eleuthera. We are very optimistic. We believe the best days of Eleuthera are ahead of it.”

Tribune Business contacted Sir Franklyn after learning he had been pitching Bahamas-based finance houses and investment banks with his plans for the Jack’s Bay project, seeking to raise capital in the local markets.

Suggesting that he would be seeking more than $10 million, he added: “We’d not be interested in less. We may do more, but won’t be interested in less. We’ll see what plays out.”

Representatives from Bahamian investment banks and money managers were among those invited to Jack’s Bay on Wednesday, and Sir Franklyn confirmed: “We did have the privilege of hosting a good number of people from here and abroad.

“Some were from the capital markets, and others were international related to the development. The country will have specifics very shortly, and it’s because of that I say we’re very optimistic.”

The partnership with Tiger Woods golf course design firm, TGR Design, to develop a private club at Jack’s Bay - part of the Cotton Bay development, located at Rock Sound - was unveiled in March 2017.

Besides Mr Woods’ company, the other major international developer partner is US-based Beacon Land Development. Jack’s Bay Developers, the entity Sir Franklyn heads, is effectively a subsidiary of Eleuthera Properties Ltd, the company formed to develop the nearby Seashells at Cotton Bay development.

While the Sunshine Holdings group is Eleuthera Properties’ largest shareholder, its other investors include the likes of Colina, BAF Financial, the John Bull Group of Companies and Royal Bank of Canada (RBC).

Besides the corporate investors, the Anglican Church has been “gifted” shares in Eleuthera Properties Ltd, while the estates of the late John Morley and Billy Lowe were also among the shareholders.

Eleuthera links to the investors are through the estates of the late Albert Sands and Whitfield Kemp. Another Eleuthera shareholder is businessman Lawrence Griffin from Governor’s Harbour, while Sir Orville Turnquest, the former governor-general, and his family are also invested.

Sir Franklyn yesterday told Tribune Business that Jack’s Bay would ensure south Eleuthera’s economic future will be brighter “than it has been in the last 35 years”.

Having been personally involved with efforts to redevelop and re-open Cotton Bay since 1985, the Sunshine Holdings chairman said the lessons learned across the administrations of four different prime ministers will stand Jack’s Bay in good stead.

“We are very optimistic that the future of south Eleuthera will be a lot better than it has been in the last 35 years,” Sir Franklyn told this newspaper. “The economy of south Eleuthera has really been in a state of continual decline for 35 years; that’s the reality.

“I’ve worked very, very hard for over 30 years to try and change that. During that period of time, we’ve learnt a great deal about why the Family Islands have not developed, and the challenges that cause the continued migration of people from those Family Islands to New Providence.”

Asked to explain these challenges, he added: “Doing business in the islands is inherently more difficult than doing business in New Providence. It’s substantially more costly, and raising financing has historically been nearly impossible. It’s just very, very difficult.”

Sir Franklyn said his Cotton Bay efforts covered the administrations of Sir Lynden Pindling, Hubert Ingraham, Perry Christie and, now, Dr Hubert Minnis. “All have tried to do something and it hasn’t worked because the problems are so intractable,” he added.

“I’m confident that the lessons we have learned have put us in good stead.”

Jack’s Bay is being designed as a private members’ club, and the location for the Caribbean’s first Tiger Woods-designed golf course.

Amenities will include features such as The Pink House, Pink Sand Bar, The Playgrounds and 10-hole, short golf course, designed by TGR Design. Further facilities involve residential resort features such as oceanfront suites, cottages and villas.

Renderings of Jack’s Bay show it is intended to feature a beach club; five founders’ lots; 42 beach club suites; 46 cottages of between 1,20-2,500 square feet; 47 estate lots with room for more later; a golf practice facility; and amenities for riding, hiking, biking and fishing.

One source familiar with the Jack’s Bay plans, speaking on condition of anonymity, told Tribune Business: “I think he [Sir Franklyn] has a more sustainable formula for developing it now, and I think they’re going to do it in modules.

“Some people are going to get houses going, and rather than spend $50 million to develop the whole project, they will spend $5 million on amenities, paving the roads, a spa and activities centre.”

The source added: “The principle of it is fine. It is part of Cotton Bay. It’s a beautiful piece of land; drop dead gorgeous.” They questioned, though, whether there would be sufficient “appetite” for the RoyalFidelity-managed placement among long-term capital managers, such as pension funds and insurance companies, given that resort-based projects are typically viewed as a private equity or venture capital-type deal.