Canadian company buys out major hotel in The Bahamas

Prime Minister Hubert Ingraham says Kerzner International has announced plans to transfer its ownership of the Atlantis Resorts and Paradise Island properties to the Canadian-based company, Brookfield.

Ingraham told legislators that Kerzner International is also transferring its ownership of the One and Only Ocean Club to Brookfield, a Canadian publicly traded company with some US$159 billion in assets.

He said that Brookfield has many years of operating experience and more that US$69 billion of property assets giving them special expertise in real estate.

Ingraham said that Kerzner's transfer of its Bahamian assets to Brookfield will result in the conversion of that company's US$175-million loan to Kerzner International into equity.

"Brookfield will now stand in Kerzner's shoes in relation to Atlantis' debt," he said, noting that he has already met with representatives of Brookfield and Sol Kerzner on the proposed change in ownership of the properties here.

"I confirm that the Atlantis Resort and the One and Only Ocean Club will continue to be managed and operated by Kerzner International," Ingraham said, noting that Kerzner International, which first entered The Bahamas as Sun International in 1994, has been overwhelmingly responsible for the revitalisation and expansion of the Bahamian tourism sector.

He said that as the employer of nearly 8,000 Bahamians, Kerzner International is the single largest private-sector employer in The Bahamas, accounting for five per cent of the entire labour force.

"The 8,000 direct jobs at Kerzner attract an annual payroll of approximately US$189 million. Each direct job at Kerzner creates an additional 1.25 to 1.5 indirect jobs in the economy - 10,000 to 12,000. In all therefore, some 18,000 to 20,000 jobs; 15 per cent of all jobs in our economy are related directly to the operations of Kerzner International in The Bahamas," Ingraham said.

He said that in addition, the company spends more than US$200 million in local purchases of goods and services and has been a reliable partner with the government in the development and maintenance of public spaces.

Ingraham said that the acquisition of the Kerzner International's Bahamian properties fits into the vision of Brookfield which has a strong cash flow and balance sheet, permitting it to provide essential financial capital at a time of global economic and financial uncertainty.

"This is especially important given our interest in ensuring that the new ownership of Atlantis will provide continued security of employment for the 8,000 Bahamians employed there.

"I have been assured that Brookfield shares Kerzner's commitment to continue future capital expenditure and maintenance of the Resort at levels sustained over the years, and further investing the same levels of resources into local and international marketing to support tourism in The Bahamas and to ensure the brand's visibility," Ingraham told legislators, adding that the government was looking forward to a strong working relationship with Brookfield.