THE popular Terra Nova Hotel & Restaurant has all but been snapped up by Guardian Life, the local arm of Trinidad powerhouse Guardian Holdings.
No cash will change hands. Instead, the deal will see the Terra Nova become part of the assets handed to Guardian Life following its $1.1 billion deal in May 1999, for the individual life and pensions portfolios of Jamaica Mutual Life Assurance Society, Dyoll Life and Crown Eagle.
In 1997, the current operator of the Terra Nova, Jamaica Hotels & Tourism Association president James Samuels led a group trying to acquire the property but said the $300 million price tag was too steep. Mr. Samuels was unavailable yesterday. A Financial Sector Adjustment Company (FINSAC) spokesman confirmed that a deal had been struck and was awaiting Cabinet approval. The spokesman confirmed that it was a regional life insurer with interests in Jamaica and that no cash would change hands.
Part of the May 1999 deal, saw Guardian and local insurance firm First Life, which acquired the group life and health portfolios of the three failed companies, agree that assets totalling $5.5 billion would be transferred to Guardian Life and First Life.
Some $3.5 billion worth of the assets, were in the form of a government debt. Guardian Life has also had other assets such as the former Corporate Group Centre, which was valued at $240 million and has been renamed Guardian Life Centre, and the Mutual Life building at Premier Plaza, St. Andrew.
The Terra Nova was also a former Mutual Life property and is likely to be some compensation for Guardian Life, which also wanted the popular Boscobel Beach as part of its portfolio.
Another hotel set to change hands was thought to be Club Jamaica, which could be taken over by the Urban Development Corporation (UDC) for around US$4.5 million, according to industry sources yesterday.
The Terra Nova was among hotels put up for sale by Christie and Company. Christie's prepared information packages for distribution to investors interested in buying such properties as FINSAC's 49.4 per cent shareholding in the Jamaica Grande, as well as Crowne Plaza and Terra Nova Hotels.
Boscobel Beach was also said to be on that list.
An international real estate consortium from the UK and US is said to be the front runner in buying Boscobel Beach Hotel but it has decided to "revisit" its offer. This comes as a result of Jamaica Hotels Limited, operator of the Boscobel Beach decision to close the hotel temporarily, effective July 23 to carry out major renovations to some of the hotel's facilities.
Issa Hotels & Resorts is expected to partner with the consortium. A source close to the sale negotiations said this week: "We have used Trevor Horwell's extensive contacts in the UK to obtain a worthy bidder for Boscobel Beach Hotel. It is hoped that Issa Hotels and Resorts will secure the management and marketing contract, while the Group acquires the bricks and mortar.
"Although a bid was submitted the group has decided that it has to revisit its offer in light of recent changes taking place at the hotel.
