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From:TheBahamasWeekly.com Bahamas Information Services Updates
Statement by Rt. Hon. Hubert A. Ingraham On Transfer of Ownership of Kerzner International Properties Paradise Island House of Assembly
29 November,
2011
Mr. Speaker:
Early this afternoon Kerzner
International announced the reorganization of its business operations
internationally including The Bahamas.
As I informed the press a few
hours ago, Kerzner International proposes to transfer its ownership
of the Atlantis Resort and Paradise Island properties, including the
One and Only Ocean Club, to Brookfield Asset Management, a Canadian
publicly-traded company with some $159 billion in assets. Brookfield
is a well known Canadian Company with many years of operating experience
and more than $69 billion of property assets giving them special expertise
in real estate.
I advise Honourable Members
that I have met with representatives of Brookfield on two occasions
and held a number of additional meetings with Mr. Sol Kerzner in connection
with the proposed change in ownership of the Paradise Island properties.
I confirm that the Atlantis
Resort and the One and Only Ocean Club will continue to be managed and
operated by Kerzner International.
As Honourable members will
recall, Kerzner International, which first entered The Bahamas as Sun
International in 1994 at a low point in our tourism performance, has
been overwhelmingly responsible for the revitalization and expansion
of the Bahamian tourism sector. Its development on Paradise Island created
the premier warm weather destination in our region.
As the employer of nearly 8,000 Bahamians, Kerzner International is the single largest private sector employer in The Bahamas. It accounts for some 5% of our employed labour force. The 8,000 direct jobs at Kerzner attract an annual payroll of approximately $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 – 20,000 jobs; 15% of all jobs in our economy, are related directly to the operations of Kerzner International in The Bahamas.
Additional contributions to
the Bahamian economy from Kerzner’s operations include:
Kerzner has also been a generous
contributor to community and charitable causes most recently making
a generous contribution to hurricane relief following the passage of
Hurricane Irene.
The Resort has been a reliable
partner with the Government in the development and maintenance of public
spaces. Indeed, Kerzner has expended some $26 million on contributions
to public parks and recreational space development, annual Independence
Celebrations and Hurricane Relief. Kerzner International has also
committed to make contributions of several million dollars toward the
development of community programmes such as the Clifton Heritage National
Park and the redevelopment of downtown Nassau. And, it is also underwriting
most of the costs associated with the reclamation of Montagu Beach and
the enhancement of the beach facilities at that popular Bahamian recreational
space.
And, Honourable Members will
recall Kerzner’s contribution to training programmes with The Bahamas
Technical and Vocational Institute.
Mr. Speaker:
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.
Honourable Members are aware
that the Government has always maintained excellent relations with Kerzner
International as owner and operator of its Paradise Island properties
and looks forward to the continuation of that relationship with Kerzner
as operator and manager.
We likewise look forward to
a strong working relationship with Brookfield.
I note that Kerzner’s transfer
of its Bahamian assets to Brookfield will result in the conversion of
that Company’s $175 million loan to Kerzner International into equity.
Brookfield will now stand in Kerzner’s shoes in relation to Atlantis’
debt.
I wish to express the thanks and gratitude of the Government and the people of The Bahamas to Sol Kerzner for his many and varied contributions to The Bahamas most especially so in the creation of jobs, growing and expanding our tourism plant and making his attraction at Paradise Island a must see for hundreds of thousands of people.
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