Friday, May 4, 2012
Friday, May 4, 2012
Statement by the government of The Bahamas on the sale of Atlantis Paradise Island:
Kerzner International Holdings Ltd has successfully completed its comprehensive global restructuring process, affecting both its assets here in The Bahamas, as well as elsewhere in the world.
This process has resulted in substantially all of its Paradise Island assets, including the Atlantis Resorts & Casino and the One & Only Ocean Club, being transferred to Brookfield Asset Management Inc, in exchange for Kerzner being released from approximately $175 million debt owed to Brookfield.
Additionally, pursuant to two management agreements, the Atlantis Management Agreement and Ocean Club Management Agreement, Kerzner will continue its premier management of the flagship Atlantis properties on Paradise Island for a minimum of three to six years and the One & Only Ocean Club on Paradise Island for a minimum fifteen years, subject to meeting certain performance hurdles. Kerzner will continue to control all aspects of the running of the properties.
The management agreements also provide that existing employees will continue to be employed by Brookfield.
Having been formally satisfied that Kerzner’s syndicate of lenders had agreed to Brookfield acquiring the ownership interest in the Paradise Island assets, the government of The Bahamas has provided the requisite approvals for the restructuring transaction, on three conditions, namely that Brookfield:
a) retains a minimum staff complement of the 8,000 employees;
b) continues a minimum annual investment in the Atlantis Resort of $50 million; and
c) continues the resort brand marketing at least at the previous level.
The government welcomes Brookfield–a recognized global conglomerate, to The Bahamas. Brookfield has assets under management of approximately $150 billion and has an over 100-year history of owning and operating assets with a focus on real estate, infrastructure, renewable power and private equity.
Brookfield also specifically has over $83 billion of property assets and decades of operating experience in real estate investments which span the globe.
The government will now continue to facilitate the transfer of ownership, a transition which is expected to be seamless, having regard to Kerzner’s continued management role.