NASSAU, BAHAMAS — A Royal Caribbean executive stated yesterday that the company’s investment in its beach club development is likely to surpass the initially projected $165 million outlined in its Heads of Agreement (HOA) with the government, with equity raise to Bahamian investors to collectively hold a 49 percent equity ownership in the development expected by the end of the second quarter or early third quarter of this year.
The government signed a Heads of Agreement for the Royal Caribbean beach club destination on Paradise Island on Monday along with a groundbreaking ceremony.
Schneider highlighted that one percent of the annual gross revenue of the Royal Beach Club will be allocated to a National Investment Fund. Additionally, Bahamians will have the opportunity to invest in the project owning up to 49 percent equity, with the remainder held by RCI.
Schneider elaborated: “The equity structure comprises the land and investment contributed by us, with the government’s contribution being the Crown land. An equity formula will be published. We’ve already conducted a land appraisal, which wasn’t made public as the HOA wasn’t signed. The total investment is expected to exceed the $165 million outlined in the HOA.”
“We couldn’t proceed with the equity raise until the HOA and the lease amendment were signed. The lease amendment reduced our original seven-acre lease to four acres. The goal for the equity raise is by the end of Q2 or early Q3,” said Schneider.
