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According to DPM, Grand Lucayan’s previous transaction required a $ 33 million loan and a $ 100 million cash concession – Eye Witness News.

Nassau, Bahamas The Bahamas Port Investment Limited (BPI), in addition to purchasing the Grand Lukayan Hotel for $ 50 million, Deputy Prime Minister Chester Cooper, a $ 33 million loan funded by taxpayers, said in parliament today.

Cooper has sent a notice to the Electra America Hospitality Group regarding the sale of Grand Lucayan. Canceled by the Davis administration.

He states: “The board of directors of (Lukayan Renewal Holdings Limited) did not believe the proposal would be in the best interests of the government or the Bahamian people, and publicly said so. The administration agreed to say it gently. “

Cooper goes on to say: “By November 2020, BPI’s” best and final offer “to buy hotel assets was $ 50 million, and the government donated $ 100 million in cash concessions to BPI over a 12-year period. To be clear, this meant that the Bahamian government was asked to pay buyers directly about $ 10 million a year to support the redevelopment of real estate. This is in addition to other concessions and warnings. “

“For example, out of a $ 50 million purchase price, BPI demanded a prepaid $ 12 million concession payment credited to the purchase price. The $ 50 million selling price includes government financing to BPI. It was. “

He added: Room Breakers Kay Hotel by mid-2022. “

Cooper said in a previous proposal that buyers wanted a $ 33 million mortgage from the government to buy real estate, and the government would buy $ 100 million in cash concessions in addition to countless tax incentives. I explained that I was supposed to repay it.

By September last year, he said the hotel had received a total of approximately $ 150 million in direct government subsidies.

“We estimate that the entire process will spend millions more on overhead costs, and even in its current trajectory, another $ 10 to $ 15 million will be spent before the transaction completes.”

According to Cooper, the government expects the Grand Lucayan Resort’s deal with the Electra America Hospitality Group to be completed by September at the latest, with refurbishment and new construction beginning by January 1, 2023.

He said: “This transaction will be completed by September at the latest and will be refurbished and refurbished by January 1, 2023. Construction will be phased in and some components of the resort will be open at all times.

“Electra intends to maintain the current minimum staffing currently in operation during the construction phase. All refurbishment and construction is expected to be completed by January 1, 2025. “

Cooper said: “The first refurbished hotel went live in early 2024. The casino refurbishment is expected to be completed in the summer of 2024, with other refurbishments and new constructions going from early 2025 to the summer of 2025.”

He said the rebuilding and reopening of the resort would create about 2,000 construction jobs and 1,000 permanent jobs, with at least 80% of all jobs going to the Bahamas.

Electra is currently conducting an economic impact assessment to determine the level of economic growth, but the government estimates that total direct investment in real estate will be in the $ 400 million range.

https://ewnews.com/bad-deal-dpm-says-former-deal-for-grand-lucayan-called-for-33m-loan-and-100-m-in-cash-concessions?utm_source=rss&utm_medium=rss&utm_campaign=bad-deal-dpm-says-former-deal-for-grand-lucayan-called-for-33m-loan-and-100-m-in-cash-concessions According to DPM, Grand Lucayan’s previous transaction required a $ 33 million loan and a $ 100 million cash concession – Eye Witness News.

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