Nassau, The Bahamas (hospitalitybusinessnews.com) According to a report in the Tribune, a deal “in principle” has been stuck between Andrew Farkas (Island Capital Group) and Sol Kerzner with the Export-Import Bank of China to take over the $3.5B project on Nassau’s Cable Beach..
The Tribune states that “this will ultimately lead to the two billionaire investors being exclusively responsible for the restructuring, financing, completion, opening and operating of the beleaguered $3.5 billion resort on Cable Beach. It would bring to an abrupt end any further actions by Supreme Court appointed receivers.”
Representatives of Island Capital have already been in China and are said to have an agreement completed except for the final signatures.
Farkas and Kerzner have done business before. In fact when Kerzner took Atlantis private some of Farkas’s companies were investors. Additionally both men did business in Dubai.
Farkas came to prominence when he started and built Insignia Financial Group, one of the largest owners and operators of multi-family housing units in the US, according to The Real Deal, The New York Real Estate News. “The company at one time controlled some 350,000 homes and 200 million square feet of commercial space before it was sold,”
Currently, Farkas is also behind Island Global Yachting which manages the Marina at Resorts World in Bimini, among others. At one time he had an agreement for a Marina at the British Colonial Hilton but that never came to be. Perhaps, as the Hilton is now owned by China Construction, this will be an in for him to re-kindle that deal.
For Kerzner this would be payback. After starting Atlantis on Paradise Island he decided to take it private. When the credit crunch hit he was unable to get refinancing and Bookfield Capital, out of Toronto Canada, took the hotels on Paradise Island over. Coming back and competing against the company that he started would bring lots of satisfaction.