Even as the West Bay Street property now known as Ocean Terraces finally joins the real estate listings of upscale properties on New Providence, the fight in court over two of the property's units and more than $2 million will continue in six month's time.
Only last week Ocean Terraces developers Sterling Bank (Bahamas) Ltd. opened three units up to the public for an open house to launch the prime property, which had remained a shuttered shell for almost 10 years. The property, almost since its inception, has been mired in litigation. It continues even as Sterling Bank (Bahamas) Ltd. has brought the property to market.
Meantime court documents revealed that first plaintiff, Leo International Holdings Ltd., and second plaintiff, Allure (Bahamas) Ltd., are fighting for the return of a collective $2,117,783, damages for trespassing, fraudulent misrepresentation, interests, costs and "such further or other relief as the honorable court deems just".
Leo claimed that it had purchased two units from North Andros Assets Limited (NAAL), which owned the property under a debenture with Cordell Funding LLLP, for just over $2 million. Allure then claimed to have spent almost $100,000 on furniture to outfit the two units.
However, when NAAL allegedly defaulted on its loan obligations to Cordell it was claimed that NAAL entered into agreements with Leo and Allure without the knowledge of Cordell.
After obtaining vacant possession of the property, Cordell sold the property to The Palm West Bay "by its power of sale as contained in the debenture".
In a statement of claim, it was argued that NAAL, "always knew that under the provisions of the mortgage, construction and loan agreement, they were expressly precluded from, inter alia, encumbering the said property or entering into any partnerships without the written consent of the second defendant (Cordell); of which the terms and agreements were not disclosed to the first plaintiff (Leo)".
Now, the debacle over the NAAL deal with Leo and Allure has pulled Sterling Asset Management Limited and Ocean Terraces by Sterling Bank (Bahamas) Ltd. into litigation, even as it is set to finally get the property to market and occupied.

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