Supplier News

Bahamas – Sol Kerzner linked to Baha Mar rescue package

By Phil - 18 November 2015

South African-born Sol Kerzner, who brought the Atlantis, Paradise Island resort to the Bahamas, has been linked with reviving the stalled $3.5bn Baha Mar resort, which went into receivership in June.

Mr. Kerzner has teamed up with Island Capital Group, owned by property tycoon Andrew Farkas, plus one of the companies that ploughed so much money into Baha Mar; the Export-Import Bank of China, and China State Construction Engineering Corporation, who want to be responsible for the restructuring, financing, completing, opening and operating the resort.

The three entities are believed to have held talks in Beijing to examine the level of debt, the contracts in place, the amount of financing required to get the resort open within nine months and also the threat of legal challenge.

However China Export-Import Bank said that the Kerzner/Farkas rescue bid was just one that it was considering.

The project’s original developer, Sarkis Izmirlian’s Baha Mar, opted not to comment on Mr Kerzner’s involvement with his former partners other than to say that his company remained the project’s ‘sole owner.’

A spokesperson said: “Given that there has been from the outset significant rumours, speculation and misinformation about Baha Mar, the developer, therefore, does not comment on inquiries of this type, and further notes that the developer is the sole owner of Baha Mar.”
Mr. Kerzner has a proven track record in the Bahamas.

One analyst said: “I believe that thousands of unemployed Bahamians and contractors may be jumping around with joy. Sol Kerzner revitalised the Bahamas and our reputation in the 1990s. I wait with bated breath to see if the reports are confirmed that Mr Kerzner has joined with Mr Farkas to save us yet again.”

Bahamas Prime Minister Perry Christie was also impressed by Mr. Kerzner as a potential candidate. He said the Export-Import Bank of China (EXIM) knew the urgency of the situation and was expected to make a decision on a possible investor ‘imminently.’

Last month, 2,000 Baha Mar workers were laid off.

“We do know that they have asked for a period of time to make that decision because it is very clear that there has been an unusual amount of interest on the part of operators of resorts and casinos to become involved in this site here,” the Prime Minister said. “We do know that a decision must be made imminently. And we expect it to be made imminently. They were to put out a statement to the effect that they were talking with many persons including Sol Kerzner’s group,” Mr. Christie added. “They are talking to people who can bring great excitement to his destination. I am very impressed with the names of the operations and the names of the individuals who are talking with them. They include also huge Chinese operators.”

Gowon Bowe, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, said of Mr. Kerzner. “He’s a known commodity. He comes from a construction background. From that perspective, he has a strong knowledge of what would have to transpire in terms of completing it form a construction perspective. In terms of having the complete package, an understanding of hotel operations and what it takes to be successful, he certainly can’t be looked away from when considering any prospective bid. He has all the skill sets and a proven track record. He’s certainly proven to be successful in the Bahamas, and understands marketing the brand and marketing the Bahamas.”