November 29, 2011
PRIME Minister Hubert Ingraham has announced that Kerzner intends to transfer ownership of the Atlantis Resort to Canadian company Brookfield.
The deal, which covers all Kerzner’s Paradise Island properties including the One and Only Ocean Club, will see Sol Kerzner stay on to manage the properties.
The Prime Minister said Brookfield Asset Management, a publicly-traded company with $159 billion in assets, has many years of operating experience and more that $69 billion of property assets – giving them special expertise in real estate.
Kerzner will continue to control all aspects of the operations at the resort and other properties, which are expected to continue running as they always have.
The deal is not expected to affect staff levels or alter the Atlantis brand in any way.
The Tribune understands that the deal is a debt-for-equity swap worth $175 million.
While at an advanced stage, the negotiations are still said to be subject to government approval, which is expected to be granted by the end of the year.
Sol Kerzner is scheduled to address the press at 2pm today.
Mr Ingraham said he will make a fuller statement on the matter when Parliament meets this afternoon.
• 1.45pm: Kerzner has issued a statement quoting Sol Kerzner as saying: "The transaction will permit Kerzner to move forward as a management company, allowing us to get back to doing what we do best – designing and managing world-class destination and luxury resorts under the Atlantis and One&Only brands.
"As part of the arrangement, Kerzner will enter into a management contract with Brookfield to continue managing the day-to-day operations at Atlantis Paradise Island, One&Only Ocean Club and One&Only Palmilla.
"As the manager of these locations, Kerzner will remain in control of all aspects of running these businesses and the resorts will continue running as they always have.
"Kerzner and Brookfield are aligned with regard to the best interests of the business moving forward, including: keeping future capital expenditures and maintenance levels consistent with years past; maintaining current employment levels and investing the same level of resources into local and international marketing to support tourism in the Bahamas and maintain brand visibility."
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