Business

Grand Lucayan sale ‘on track’; due diligence period extended

Parties have agreed to 45-day extension to complete requisite legal documentation

The sale of the Grand Lucayan resort to Electra America Hospitality Group is “steadily progressing and on track for completion”, the board of directors of Lucayan Renewal Holdings Limited said yesterday.

In recent weeks, Opposition Leader Michael Pintard has raised doubts that the project would move forward, noting that the Minnis administration also heard promises from potential buyers that never panned out.

In May, Electra America agreed to purchase the Grand Lucayan resort at a cost of $100 million subject to a 60-day due diligence period, and with a closing no later than 120 days. The board said in a statement yesterday that the time has been extended to iron out legal matters.

“The parties have agreed to a 45-day extension to complete requisite legal documentation. At this time, we anticipate no other material changes and it is still anticipated that renovations will begin during January 2023, as originally announced,” the statement said.

“Lucayan Renewal Holdings and Electra America Hospitality Group remain committed to the revitalization of the tourism industry on Grand Bahama Island.”

Electra America has committed to an estimated $300 million in construction and renovation to rebuild the Grand Bahama resort.

The construction phase is expected to produce 2,000 jobs, with another 1,000 permanent jobs expected once the resort is fully reopened.

Speaking to his company’s commitment to the project, Electra America Hospitality Group Chief Executive Officer Russ Urban said, “We are excited about Grand Bahama Island, and as we move forward with closing the deal, we reassure the people of Grand Bahama of our commitment to developing a world-class resort and collaborating on community development initiatives.”

The Minnis administration bought the property from Hong Kong conglomerate Hutchison Whampoa in August 2018 for $65 million.

In March 2020, the government signed a heads of agreement with Royal Caribbean Cruise Lines (RCCL) and the ITM Group, which promised to invest more than $300 million in the redevelopment of the project and construction of a cruise port; however, the COVID-19 pandemic delayed and changed the terms of the agreement.

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Paige McCartney

Paige joined The Nassau Guardian in 2010 as a television news reporter and anchor. She has covered countless political and social events that have impacted the lives of Bahamians and changed the trajectory of The Bahamas. Paige started working as a business reporter in August 2016. Education: Palm Beach Atlantic University in 2006 with a BA in Radio and Television News

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