The Atlantis Paradise Island Resort’s financial future is secure this announcement made by the mega resort’s managers who announced Tuesday that they have successfully refinanced the mega resort’s debt and settled on two agreements to ensure the resort’s future success.
The agreements include the completion of a $1.9 billion recapitalisation supported by Brookfield Asset Management Inc. coupled with the appointment of a new property manager.
Managing Director of Brookfield’s Real Estate Finance Partners Andrea Balkin made the announcement during a press conference at the Office of the Prime Minister yesterday, where she expressed happiness with completing what she described as a complicated financial transaction.
“We have obtained a $1.75 billion, seven year loan on the property from a consortium of lenders, Brookfield has invested an additional $200 million of its own capital and as well as the capital of its partners,” she said.
“We’re excited about it because this transaction enables us to put the financing to bed for a period of seven years and enables Mr. (George) Markantonis and his team to really focus on our primary mission which is a first rate hospitality asset which we continue to invest in and which can continue to drive more satisfied guest too. I think the important thing for everybody, particularly our employees and our guest is to know that there will be a seamless transition, the people that everyone is dealing with now will continue to run Atlantis as Brookfield employees for the near term.”
In addition, Brookfield has created a wholly owned subsidiary called Brookfield Hospitality LLC, which will assume management of the mega resort once Brookfield’s contract with Kerzner international expires on September 9.
Mr. Markantonis will head Brookfield Hospitality.
Mr. Markantonis has served as Atlantis’ president and managing director for the past eight years.
Prime Minister and Minister of Finance Perry Christie touted Brookfield’s new arrangement as an enormous manifestation of confidence both in Atlantis as a successful business and in the local economy.
“The size of this transaction is an incredible accomplishment in today’s challenging global economic environment,” he said.
“It confirms the forecast of a bright future for our tourist industry, in which Atlantis is the largest private sector partner with some 8,000 employees. My government has worked cooperatively and tirelessly with Brookfield and its partners to approve and grant the necessary permits for the refinancing transaction on terms and benefits similar to those granted at the time of Brookfield’s acquisition of majority ownership from Kerzner in 2012.”
According to Mr. Christie, Brookfield has further agreed to the following.
“There shall be no reductions in staff at the resort during the current ownership,
the resort will continue to be operated as a world class facility and maintain high standards,” he said.
“Bahamian contractors, labour, materials, supplies etc., would be utilised to the fullest extent at the resort. In making more facilities available for Bahamians, suitable arrangements are being put in place for playtime and preferred fees for members of the Bahamas Golf Federation to utilise the Paradise Island Golf Course.”
The prime minister added that Brookfield and Access Industries will now have to concentrate on upgrading and expanding facilities at both Atlantis and the Ocean Club.
