Liquidators for CLICO (Bahamas) are close to cementing the sale of 41.16 acres in Wellington Preserve, a move that will recover nearly $5 million.
According to documents filed in the U.S. Bankruptcy court in the Southern District of Florida, the proposed "Garber sale" should be approved within the next 30 days, pending a due diligence period.
Ronald Neiwirth, the U.S.-based attorney acting for the insolvent insurer's Bahamian liquidator Craig A. 'Tony' Gomez, has executed a new purchase and sale agreement (PSA) with Symon V. Garber.
"Consequently, the relief sought seeks a second order further amending the confirmed second amended plan of liquidation in two particular areas: First, to authorize the debtor to enter into the proposed PSA with Garber and to close the transaction contemplated by the Garber PSA; and second, to provide that the debtor shall continue to market the remaining 242 acres of land whether as one parcel or as several," the court document said.
The net proceeds, it concluded, minus closing costs and other fees, will go towards the liquidating estate of CLICO Enterprises as partial payment of principal on account of its allowed unsecured claim.
This latest sale follows the "J-5 and Tanen" transaction on May 12, when the liquidator sold a 138.3-acre tract at Wellington Preserve for $13.384 million, the majority of which will be returned to the insolvent insurer's Bahamian subsidiary, CLICO Enterprises.
Guardian Business understands that the $13 million sale, finalized with a prominent individual in the equestrian world, should have a "domino effect" and help generate future sales.
Wellington Preserve is considered by many to be ideal farm and horse-breeding land.
"I know what our real estate broker tells us, that once that domino fell, others might want to bask in his limelight to be part of it," Neiwirth revealed. "This is hopefully part of an avalanche to get rid of the remaining property."
While there is still 240 acres to go, he noted that there are already many interested parties in the remaining plots of land. In this latest $4.7 million deal, Neiwirth said the price per acre is "considerably higher" than the larger 138-acre transaction.
That deal went for under $100,000 per acre, he added, and this latest sale is going for approximately $115,000 per acre - an improvement of nearly 20 percent.
He told Guardian Business that Wellington Preserve has "bottomed out in terms of price", and the strategy of parceling up smaller pieces of land at higher prices is paying off.
Neiwirth credits Gomez, a partner at Baker Tilly Gomez, with spearheading this plan to sell off little farms and horse ranches in bunches of 20 to 40 acres.
"His strategy seems to be working very nicely," he added.
"This is basically very well off horse country, for people who have millions, but even when you have millions you don't want to throw $20 million or $30 million into places to keep your horses. You're not really living there."
CLICO Enterprises is owed around $73 million by the Florida-based real estate project.
Neiwirth said a total recovery of $40 million is indeed possible, which would be approximately 55 percent of what's owed to policyholders and creditors.
CLICO Enterprises is the entity through which CLICO (Bahamas) invested funds into Wellington Preserve.

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