The Bahama Journal has confirmed that Lehman Brothers, the propertyﾒs mortgagee, signed the $40 million deal with World Investments Holdings (WIH), a U.S-based firm. Lehman is represented by attorney Valentine Grimes.
Jethro Miller, attorney for WIH, confirmed the signing, but did not go into details of the contract, indicating that it would be appropriate for the government and the new owners to do so.
WIH plans to complete the purchase in 60 days, and begin a major renovation project, which will include getting the casino and towers opened within eight months.
The Bahama Journal has also learnt that there are plans to develop a water theme park at the property, which would be used by guests and residents.
World Investments Holdings managed to beat the Ireland-based Harcourt group for the deal, which comes several weeks after Prime Minister Perry Christie announced in the House of Assembly that the sale was about to happen any day.
The closure of the Royal Oasis resulted in more than 1,000 Bahamians losing their jobs and contributed to driving unemployment in Grand Bahama up from 9.3 percent in 2004 to 11 percent in 2005.
When he led debate on the budget on June 7, the prime minister said government negotiators were meeting in New York with concerned parties and he had just been informed of an agreement for sale before announcing it.
“I therefore look forward to working out the details with the new owners as that transaction progresses to a completion,” he said at the time, “and most certainly, Mr. Speaker, look forward to how we deal with that issue.”
Later, the prime minister said that there were continuing negotiations between the government, Lehman Brothers and two sets of potential buyers.
Week before last, the Royal Oasis issue was dealt with in a Cabinet meeting as the government moved to bring resolution to the matter.
The continued closure of the property had been widely viewed as a sign of a lackluster economy in Grand Bahama and government officials had said selling the resort was a priority.
Political observers and government insiders had also admitted that failure to sell the resort before the next general election would have been a major political distraction for the government, and would have negatively impacted its chances of victory in Grand Bahama.
Minister of Tourism Obie Wilchcombe could not be reached last night for comment on the latest development, but only recently, he noted the importance of getting the property sold when he spoke with The Bahama Journal.
“[The resort] has been a very strong provider of Freeport and of Grand Bahama, so what we need to ensure is that [the negotiations] move very quickly and it creates new opportunities. What weﾒre hoping to do is bring a new experience,” he said at the time.
He noted that workers at the International Bazaar, taxi drivers, and straw and food vendors have all been negatively impacted by the closure of the resort.
“Thatﾒs why itﾒs imperative that we move quickly – as quickly as we possibly can – to make the sale happen,” Minister Wilchcombe said.
By: Candia Dames, The Bahama Journal
