The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Grand Lucayan’s Board yesterday defended itself from accusations that it had given “a reprehensible slap in the face” to Bahamian realtors over the property’s impending sale.

Christine Wallace-Whitfield, the Bahamas Real Estate Association’s (BREA) president, in a statement blasted Lucayan Renewal Holdings, the government-controlled vehicle that currently owns the resort, for ignoring Bahamian professionals and using a foreign firm to list and market the property.

However, Michael Scott, the Grand Lucayan’s chairman, said the board had “dealt with this issue before”. He revealed that Colliers, the Canadian-headquartered realtor that was selected to list and market the resort worldwide, and administer the sales process, was “operating through a local agent” that is based in The Bahamas.

“They, Colliers, have a local relationship,” Mr Scott told Tribune Business in response to BREA’s concerns. “That point was raised before and we dealt with it. Colliers are operating through a local agent. I don’t remember who they are.”

He directed this newspaper to fellow board member, Ed Rahming, who confirmed the local agent for Colliers is Sterling Bahamas Realty. “Those are the guys Colliers got engaged through, a local agent,” the Bahamian accountant confirmed.

But Ms Wallace-Whitfield, in her statement on behalf of BREA, said: “There are more than 700 licensed real estate professionals in The Bahamas, many with firms that have the best international affiliations as well as other local firms that work in conjunction with international based firms in the world.

“For a holding company that is a representative of the government of The Bahamas to ignore those 700-plus individuals and world-class, internationally affiliated firms to list what may be the largest single sales transaction of the year is reprehensible’ a real slap in the face.”

The BREA statement said that according its its rules, and the laws of The Bahamas, all real estate transactions within the country - including those involving sales to foreign entities - must involve the services of a licensed Bahamian broker.

“We are, at this very moment, dealing with infractions by foreigners coming into the country and selling Bahamian property,” said Ms Wallace-Whitfield. She added that her phone had been ringing constantly since the Grand Lucayan’s sale was announced due to confirmation that the process was co-ordinated through Colliers International, a company based in Toronto, Canada, with offices throughout the world but not in The Bahamas.

“Please do not misunderstand us on this,” Ms Wallace-Whitfield said. “BREA is thrilled that the Grand Lucayan will have a new owner, and that Royal Caribbean International, which has been a good friend of The Bahamas for 50 years, will be part of the new ownership.

“The cruise line’s marketing reach is legendary and we are eager to see the project plans which Royal Caribbean and its partner, ITM Group, have. We have no qualms whatsoever with the sale. We believe that it will provide the economic engine that will drive Freeport and Grand Bahama farther than it has ever gone before. More than a restoration, it will be a re-birth and we congratulate all parties involved, but we remain adamant that a Bahamian real estate firm should have been involved.”

Ms Wallace-Whitfield said that less than 24 hours after news broke of the Letter of Intent (LOI) signing, the BREA board voted to register its “shock, disappointment and dismay” that the transaction was handed to a foreign company.

Most well-known real estate franchises have Bahamian affiliate offices, including Better Homes and Gardens Real Estate; Christie’s; Coldwell Banker; Engel & Volkers; ERA; Luxury Portfolio; NAI Commercial; and Sotheby’s. Other firms throughout The Bahamas have international relationships to assist them.