The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The prime minister will today announce the heads of agreement signing for the $2bn revival of the former Ginn project in Grand Bahama's West End, sources said last night.

Well-placed Tribune Business contacts suggested Dr Hubert Minnis plans to make a big impact before Parliament breaks for the summer recess, with the deal with Toronto-based developer, Skyline Investments, said to have been signed quietly last week.

The prime minister will unveil the developer's commitments and plans for the former Ginn sur mer property, with its purchase and hand-over of the development said to be scheduled for a September 3 close.

Tribune Business exclusively revealed that Skyline Investments, which is behind the Grand Palm Beach Acquisitions Ltd vehicle, was the prospective buyer back in September 2017. It has already held Town Meetings in West End to introduce its plans to locals, and increased chatter among realtors has preceded the closing.

One missive, by the Island Property Group, states: "International developer Skyline Investments is taking over the former Ginn development on West End, Grand Bahama. They are acquiring the 2,012 acre development as well as the 550-acre Old Bahama Bay Resort. The new development will be called Grand Bahama Bay.

"Skyline's vision is to create a self-maintained, secluded, high-end, low impact innovation community that will provide guests with an unparalleled Bahamian work and life experience..... Skyline will use modern innovations and green technology to make sure it remains that way."

The Island Property Group added: "The initial goals are to bring in the Marriott hotel and the Ritz hotel, as well as a casino and finish the world-class Arnold Palmer Golf course. They are also going to add 72 slips to the existing marina.

"A resident can have an appetising breakfast at one of the site's luxury dinning options, shop at the central commercial district, visit a doctor in the nearby modern health facilities, all just a 25 minute flight from the on-site airport to the executive airport in Fort Lauderdale, Florida.

"To further capitalise on these benefits, a smart city will act as a headquarters to high tech start-ups, personal businesses and consultancies. With over $2 billion to be invested, this project will enhance the West End community and help make western Grand Bahama a vibrant hospitality hub. They are poised to become a major player in the Bahamas hospitality industry."

Skyline Investments, which has $500m in assets and a focus on hotel/resort developments, previously said it plans to develop a new 120-room hotel, add 75 marina slips and upgrade the airport and golf course within the first 24 months post-acquisition.

It also wants to develop a 'Smart City' that will act as a headquarters for high technology start‐ups, personal businesses and consultancies.

Tribune Business sources previously suggested that Skyline's negotiations have involved the added complication of dealing with two vendors. What would have been the core project was owned by Lubert-Adler, the Philadelphia-based investment bank that was Ginn's financing partner.

It held 280 acres that were earmarked as the site for the hotels and casino, and its landholdings also include key amenities such as the airport, marina and utilities.

Lubert-Adler also controlled the Old Bahama Bay Resort, the golf course, the existing marina, commercial facilities such as the restaurants and retail, and associated operational facilities.

But a Credit Suisse-led lending syndicate took possession of the remaining 1,476 acres at the former Ginn sur mer project after Ginn Development Company defaulted on its $276 million loan.

It effectively inherited the real estate component of the Ginn project, and hired Replay Resorts to master plan the property. Lubert Adler and Credit Suisse have worked together in the belief this is the best way to maximise their exit price - and potential recovery - by selling the former Ginn sur mer as one.

Skyline Investments, which is listed on the Tel Aviv Stock Exchange, describes itself on its website as having $500 million in assets. It specialises in real estate investment and development related to the hotel/resort industry.

It describes itself as "sourcing new acquisition opportunities to grow and diversify its cash flow in North America", with an emphasis on geographical diversification.

Current properties include the Hyatt Regency at The Arcade in Cleveland; the Renaissance Cleveland Hotel; Bear Valley Ski Resort in California, plus a variety of mixed-use resort developments throughout Canada.