NASSAU, BAHAMAS — A well-known Grand Bahama-based attorney said yesterday that large contracts such as the one involving sale of the Grand Lucayan resort to the Electra America Hospitality Group for $100 million inevitably take a long time to get right, noting that an agreement on the timing for the creation of a viable Grand Bahama International Airport will need to be arrived at in order to give comfort to the purchaser.
Carey Leonard, the Callenders & Co attorney and partner told Eyewitness News, “I believe that the deal is going to take much longer to close than currently anticipated. I would hope to see a contract signed by the end of the year with some form of construction commencing in late May or early June next year. I have been involved with many large contracts and they inevitably take a long time to get right.”
The initial due diligence period was extended by 15 days, taking it to July 27 however negotiations over the hotel’s sale have been extended by 45 days to September 15.
The government back in May announced that it had accepted the Electra America Hospitality Group’s offer to purchase the Grand Lucayan Resort for $100 million. The group is part of the Electra America conglomerate which has some $7 billion in assets worldwide. The company has committed to an estimated $300 million in renovations and construction plans.
The agreement was said to be subject to a 60-day due diligence period, with closing no later than 120 days. Electra has committed to a luxury lifestyle hotel with approximately 200 rooms and two dozen villas, along with an upscale convention hotel with more than 500 rooms. The company will also open an all-suite family resort with more than 200 condo-hotel-style suites.
Leonard said that he supported the Davis administration’s decision to cancel the contract with ITM/RCCL group.
“From what I can find, the group that the government is now negotiating with are much better suited for Freeport and Grand Bahama as a whole,” he said.
“If the new group completes the purchase and proceeds with the envisaged development, it will be a very positive game changer for the tourist product on Grand Bahama.”
Leonard added: “I would think that some agreement as to the timing for the creation of a viable Grand Bahama International Airport will need to be arrived at in order to give comfort to the purchaser that he can justify the investment of hundreds of millions of dollars required to redevelop the hotel property, as envisaged.”
The government acquired the Grand Bahama International Airport last Spring, bringing the number of airports under the Airport Authority’s ownership to 30. The airport comprises 2,500 acres, inclusive of an 11,000-foot runway. The Davis administration has said that it is eyeing a world-class airport for the island.
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