The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian developer yesterday disclosed it has generated “well over 500 verified leads” for potential purchasers in its south-western New Providence community just over a week after launching its sales drive.

Robert Myers, principal of the former Adelaide Pines project, which has been renamed Windsor Lakes, told Tribune Business that the project is now only waiting on the Ministry of Works to review its performance bond submission before it can convert ‘reservations’ into actual sales agreements.

With this final approval though to be imminent, he estimated that the developers will invest at least $35m-$40m in building-out all the roads, common areas, gated entrance and other infrastructure required for the project as they eye a “substantial” completion date of end-2024.

Mr Myers, who has partnered with Bahamas resident, Michael Huttman, to develop Windsor Lakes, also disclosed that Park Ridge Securities, the entity that developed Albany, is no longer involved with the project. Documents filed with the National Economic Council (NEC) previously showed it as holding a minority 20 percent interest in the 179 residential lot community that will be located across the street from its own existing development.

“We gave all the permits in place,” Mr Myers told this newspaper. “We have started work, putting in roughing for the roads and common areas and the lakes, plus site clearing etc. We are this year going to build the entrance gate house and one of the storage facilities. We are currently taking reservation agreements, and those will convert to sales agreements once we get the bond in place.

“The bond review is being done by the Ministry of Works, and all those numbers are in. We’re waiting for the bond review, and once that’s complete we post the bond and get subdivision approval. We’re then permitted by law to sell the lots. It’s a very involved process, but it’s understandable.

“Once we get that letter from them [the ministry], which we hope and are told should be this week, then we can post the bond next week and convert our reservation agreements to sales agreements and close on the lot sales.”

The Planning and Subdivision Act requires all developers to provide a financial security, or guarantee, to cover the costs of installing infrastructure for their projects. This must be done before they can sell any lots, and it acts as a safeguard should developers fail to perform, as it will cover the Government’s costs of having to step in and do this while also protecting purchasers from acquiring real estate in a project that has no utilities, roads or other essential infrastructure.

Mr Myers said Windsor Lakes currently can only accept “non-binding” reservation agreements from potential purchasers who want to secure a particular lot site by paying a small deposit ahead of other potential purchasers. All sums involved are being held in escrow until the development receives its final go-ahead from the Ministry of Works.

Reaffirming that the development is targeted at the upper middle and middle income brackets, as New Providence’s population increasingly moves westwards in line with economic expansion and development, he added that initial buyer interest has been “excellent” given that the sales effort launched only last week. Some 42 of the 179 residential lots are multi-family and geared to triplexes.

“We have introductory pricing going out based on it being a new development at the infrastructure stage,” Mr Myers explained. Prices start at $195,000 on the interior lots, and up to “$300,000 and something” on lake front sites depending on their size. “They’re in line with other gated communities. Average lot size is 7,200 square feet. We have some that are 8,000-9,000 square feet, and we have some that are 6,500 and 6,800 square feet,” he added.

“It’s an excellent deal not far above our costs,” he added of the starter prices. “We’ll probably get at least 20 or so lots sold and then have a price increase. Last week we signed six, I believe, and then did another five or six storage units. I haven’t checked in with the guys this week, but assuming we have got verified leads we will have well over 500 new verified leads. I think we’ve seen a very generous interest and people are very excited about the offering.

“We’ve had some people looking at two or three lots and wanting to build in the middle of them. They want a bigger footprint, so we have people reserving multiple lots. I would have liked to see the numbers [the costs] come in a bit lower to make it affordable, but it is what it is. Inflation is a reality, not just in product but properties and the development of properties. Developing properties is getting more and more expensive.”

Mr Myers signalled that Windsor Lakes’ layout has some flexibility. While it includes commercial and light industrial lots, he said the developers were “not going to sell” the latter right now until they obtained a better handle on demand for the storage units.

“We’re going to see what happens with the storage facility,” he added. “If that is oversubscribed we will expand the storage facility and take out the light industrial lots.” There are some 120 storage units, measuring 20 feet by 30 feet, with some climate controlled and to be powered by solar.

“In about two to three months you’ll be able to drive around every single road in the community. All the lakes will be installed, all the roads will be installed, the storage facility will be started and the gate entrance started. There will be a temporary gate for the sales office.”

Mr Myers said he and his development partners were in the process of finalising their estimated infrastructure investment, but said this is projected to be “well over $35m” once everything is completed. The total number of construction jobs that the developers will create themselves is likely to “ebb and flow”, but will “definitely” be in the hundreds.

“When you add all the stuff up it’s expensive,” he added. “On top of the cost of land acquisition and everything else it gets very expensive. The big thing for us is controlling the costs now. The infrastructure cost per lot has got higher and higher with the introduction of new legislation. Now we have to have Environmental Impact Assessments (EIAs), Environmental Management Plans, environmental monitors out here every day.

“It’s gotten very, very expensive on top of doing civil works, engineering, architectural works, when you add all these things up. I think it’s necessary to have this legislation, such as the Planning and Subdivisions Act, but it all makes development more expensive because you have to put up bonds to get all the infrastructure done. It costs a hell of a lot to get development done and that has to be taken into consideration when looking at the cost of doing business.”

Mr Myers also disclosed that Park Ridge Securities, the Albany developer, is no longer among the Windsor Lakes investors. “They’re not involved any more,” he confirmed. “They were initially involved, and decided they had enough to deal with on their own. We mutually agreed that they will no longer be involved, but they’re still very supportive and we will co-exist. We’re neighbours and we need to co-exist.”

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