Grand Lucayan sales agreement tabled in House

Deputy Prime Minister and Minister of Finance, Peter Turnquest.

The terms of the government’s acquisition of the Our Lucaya property in Freeport, Grand Bahama were laid out in a resolution tabled in Parliament yesterday by Deputy Prime Minister and Minister of Finance, Peter Turnquest.

According to the documents tabled, a special purpose vehicle (SPV) – Lucayan Renewal Holdings Limited – has been established, which is owned by the government for the purpose of the property.

The purchase price of the property amounts to $65 million and is to be paid by way of a $10 million deposit, an additional payment of $20 million due and paid upon the completion date and the $35million balance is to be paid by seven tranches of bonds of $5 million. This is to be payable quarterly at a rate at four per cent per year.

Turnquest reiterated the government’s commitment to rescuing Grand Bahama’s troubled economy.

“Notwithstanding the 400 employees attached to that property are small and medium sized business individuals who derive their livelihood from that entity,” Turnquest said.

“We are talking about Bahamians who depend on that economic activity and that  is why we are doing it.”

According to the resolution tabled, the government is financing the initial $30 million of the purchase price by an advance from the Contingency Fund authorized by the finance minister and proposes to guarantee the loan to the SPV in the sum of $35 million from the vendors to pay the balance of the purchase price and to guarantee the said loan upon the terms and conditions laid out in the guarantee.