The Bahamas Investment Authority (BIA) rejected the $22 million bid of developer LM Property Development Company Ltd. to purchase shares in the “unsold portion of a development known as Treasure Cay”.
A Tribune report in July revealed that the bid was unsuccessful, but it was never revealed what that bid included.
A BIA letter on the rejected bid does not include an explanation for the rejection of the proposed purchase of all but one share in Treasure Cay Limited for $22,325,000.00 to develop a 150-condo/hotel, 350-room, three- to four-star hotel; 50-room and approximately 50-cottage five-star hotel, new marina, commercial center, shopping center, restaurants and bars, on Treasure Cay, Great Abaco.
The letter from the BIA explains that the approval needed from The Central Bank of The Bahamas to purchase the shares was also refused.
The Tribune article outlines that this bid for the property goes back a number of years, with agreements between the seller and proposed purchaser signed.
That letter from the BIA to LM was dated June 16.
The BIA letter reads: “Please be advised that the National Economic Council has concluded on the project proposal of LM Property Development Company Ltd., as follows: Noted the application by LM Property for the acquisition and development of Treasure Cay Resort.
“Refused the application of LM Property Development Company Ltd., to purchase all shares in Treasure Cay Limited for the total purchase price of $22,325,000.00 to develop a 150-condo/hotel, 350-room, three- to four-star hotel; 50-room and approximately 50-cottage five-star hotel, new marina, commercial center, shopping center, restaurants and bars, on Treasure Cay, Great Abaco; subject to approval of the environmental impact assessment and environmental management plan (and any other required environmental reports or studies) by the Department of Environmental Planning and Protection and all other relevant government agencies prior to the commencement of any construction or other works, the Ministry of Public Works, the Department of Physical Planning, the Ministry of the Environment, and all other relevant government agencies;
“Refused the request for Central Bank of The Bahamas approval for LM Property Development Company Ltd. to purchase all but one of the shares in Treasure Cay Limited as well as the companies owned by Treasure Cay and the investment in the companies for the total purchase of $22,325,000.00, subject to meeting the necessary requirements and normal due diligence of The Central Bank of The Bahamas and all other relevant government agencies; and….
“Refused the application of LM Property Development Company Ltd., to obtain concessions as are available under the Hotels Encouragement Act.
“Refused the application of LM Property Development Company Ltd. to operate a port of entry.”
It is understood that the refusal could be contested, which could drag out the sale of the property, which has been on the market for several years.
The Treasure Cay Beach, Marina and Golf Resort had to focus on rebuilding in the aftermath of Hurricane Dorian and closed the hotel.
The resort’s President Robert Meister told this paper in 2019 that “Every building and asset was either left in ruins or extensively damaged.”