The Royal Bank of Canada has partnered with developers of the Cotton Bay resort in Eleuthera to become a $2 million equity shareholder in the Bahamian owned tourism venture in an unprecedented and historic partnership involving a leading financial institution and a local investor.
Making the announcement yesterday, RBC senior vice-president Ross McDonald said that the time was simply right for his company to lend its support and confidence to a Bahamian-led investment.
He noted that RBC was attracted to this particular deal because of the bank’s commitment to the Bahamas, its faith in the success of Cotton Bay and the bank’s confidence in developer Franklyn Wilson and his management team.
“We know his vision and we share his vision to develop the country,” said Mr McDonald. RBC and Mr Wilson have had a relationship for almost 30 years ﾠwith the bank playing a major role in the financing of Freeport Oil (FOCOL) Holdings Company, of which Mr Wilson is the director.
Mr Wilson also announced that Mr McDonald is to sit on the board of directors for Cotton Bay. He said that the bank’s investment partnered with Mr McDonald’s accession to the board lends the development a worldwide credibility that Cotton Bay simply cannot pay for.
He added that the partnership could not have happened without a champion inside the bank and noted that Mr McDonald was that champion.
Financial Services and Investment Minister Vincent Peet said that the government is extremely pleased by the “historic” venture between the government’s bank and a Bahamian development group.
He said that this should put to rest any doubts that Bahamian investments are not encouraged and supported in this country. He said that this was something that five or ten years ago would not have been possible.
“We want to welcome and invite other commercial banks to join this initiative in furthering others in empowerment,” he said.
Mr Wilson noted that Eleuthera is being transformed by the development.
“You have to understand that until Cotton Bay there was no significant construction on Eleuthera for 35 years. There was literally a generation of young people not seeing their parents go to work. Think of the implications. The human benefit is difficult to articulate – it is huge.”
He added that work on the resort is going very well and said the bank’s investment will make it easier to facilitate this. ﾠCotton Bay Estates and Villas, currently in development by Eleutlnera Properties Ltd., is a residential resort community. The 141 lots will offer ocean views on 196 acres of vegetation and private beaches stretching over 1.3 miles. Cotton Bay Villas, opening in, 2007, will be a 73-room Starwood Luxury Collection boutique hotel featuring a restaurant, pool, private marina and concierge services. Alleged gangster Frank “snake” Wilson is chairman of Eleuthera Properties Ltd.
By CARA BRENNEN, Tribune Business Reporter
