Eight months after a handful of invited guests beheld the potential of Ocean Terraces - the prime property, which sits between the Caves Heights development and Sapodilla Restaurant, and which has remained a shuttered shell for almost 10 years - development seems to have once again gone dormant, with the sign advertising its for-sale condominiums taken down and its gates perpetually closed.
In January, Ocean Terraces had finally joined the real estate listings of upscale properties on New Providence, even as the fight in court over two of the property's units and more than $2 million was due to continue in June.
Guardian Business was not able to ascertain why the luxury condos have once again been taken off the market - probably temporarily - but it is likely that courts have ordered that the sale of the units be stopped until the conclusion of the case. This paper understands that a gag order has been issued, preventing those involved with the case from discussing it.
In January, Ocean Terraces developers Sterling Bank (Bahamas) Ltd. opened three units up to the public for an open house to launch the property. Almost since its inception, the property has been mired in litigation.
Court documents reveal that the first plaintiff, Leo International Holdings Ltd., and second plaintiff, Allure (Bahamas) Ltd., are fighting for the return of a collective $2,117,783, representing 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) Limited into litigation, even as it seemed set to finally get the property to market and occupied.
The property sat barren and desolate as a three-story white shell for close to 10 years, but January's open house, held by Sotheby's International Realty, revealed the resplendent beauty the development was meant to become.

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