There will be an internationally recognized construction management firm that will tender and sub-contract construction work to Barbadian-based contractors for the completion of the Four Seasons Project.
This is one of the key announcements from Avinash Persuad, executive chairman of a body representing stakeholders about the latest news of Four Seasons Resort and Residences project set for Barbados.
Though he did not disclose the name of the international firm that will be taking on the role, he explained that it will be sub-contracting work to Barbadian firms, which will in effect bring more jobs to the island.
Speaking to the local media Persuad noted, “Part of the multiple agreements between Paradise, villa owners, Four Seasons, Government and the new lenders is that the work will be carried out on a different basis than before. There will be an internationally recognised construction management firm who will then tender and sub-contract construction work to leading Barbadian-based contractors.”
In February 2009, work at the resort came to a grinding halt after mounting financial difficulties.
“The expectation is that when the work resumes there will be up to 1 000 Barbadian workers on site and the contracts will bring in some BDS$500 million of foreign exchange revenues over the course of the project,” he said.
On July 1st 2010 Prime Minister David Thompson announced that he was signing the Four Seasons Agreement which would get the project back on track.
Persaud explained that the signing by the Government of the guarantee was a condition of ANSA Merchant Bank syndicating part of the loan.
The project has gained international attention from organisations such as the International Monetary Fund and even rating agencies have commented on the significance of the construction halt.
According to local media reports Persaud said, “The condition of the Government guarantee of US$60 million to ANSA Merchant Bank was that the Government will hold a golden share in the project which gives it various rights and vetoes, including the appointment of half of the board of Paradise Beach Limited.” Persaud, will oversee Paradise Beach Limited’s new independent management company along with Colin Scaife, its chief operating officer. Scaife is a British-born construction management expert with substantial experience with Four Seasons and other luxury hotels.
The US$60 million facility from Ansa McAL Merchant Bank and its Barbadian affiliate, Consolidated Finance, allows for a repayment of the Bank of Scotland loan, the acquisition of the Esso land to complete the site, a settlement with creditors, and the recommencement of construction.
Amid a depressed global economy and a slowdown in visitor arrivals, it is being projected that Barbados should witness an increase in property sale transactions.
This disclosure has been made by Aliyah Jaggasar, trustee at RBTT Trust Ltd, which manages its Praetorian Property Fund. In unaudited financial statements for the six months ended March 31, 2010, Jaggassar reported that one “experienced company” is witnessing an 80 per cent increase in serious inquiries in December and January compared with the same time a year ago.
According to Jaggasar that will augur well for the three properties held by the fund in Barbados,” she said in a published report. “The fund has continued to upgrade a selected number of commercial and residential properties in an attempt to preserve values, while it continues to receive significant rental income from its high end properties in the market. “The Bay property in Barbados underwent some renovations that were completed at the end of last year. There have been several showings in the recent weeks and we anticipate it being fully tenanted before the end of this financial year.”
This latest news should be an encouraging sign for local real estate agents and property developers who have highlighted that the previous 18 months did witness a decrease in market prices on the island.
The report said that the fund reported a net income of $3.11 million for the half-year. The net asset value per unit of the fund stood at $6 compared with the market price of $3.85, which still represents a significant opportunity for investors. The accumulated surplus stood at $39.9 million while the total net asset of the fund was $239.9 million.
The report said the decrease in tourist arrivals to the Caribbean continues, with several of those economies which are dependent on the tourism sector still feeling the adverse effects of the slowdown in global markets. “Updated tourism statistics for 2009—as at February 2, 2010—reflect declines in overall arrivals for all jurisdictions, except Jamaica and Curacao, where the fund currently holds no properties. “Caribbean economies continue to await stronger recovery in the United States, United Kingdom and other source markets to positively impact their key sectors,” the report stated, citing the Caribbean Tourism Organisation as its source.
Just about a month after the news that a major multi-million dollar town centre is planned for Nestfield, St. Lucy, the Barbados Government has revealed that yet another major development is planned for the island’s northern most parish.
In fact, the Pickering Housing and Town Centre Development is expected to generate hundreds of millions of dollars in revenue.
According to Prime Minister David Thompson, the massive development project will also employ hundreds of people and stimulate the socio-economic development of the entire northern section of Barbados.
Prime Minister Thompson made the remarks, as he addressed persons gathered for a ground breaking ceremony to mark Phase 1 of the Pickering Housing and Town Centre Development.
At a time when foreign investment is desperately needed, this project will generate US $800 million, of which US $500 million will be from sales to non-residents. The project will employ some 600 persons at the peak of construction and provide sustainable employment opportunities for 300 persons to support residential and business aspects of the development,” the Prime Minister revealed.
Among other things, the project will feature a heritage site, 1200 residential homes, a commercial centre, fish farm, a civic complex, lakes, parks, an amphitheatre, a waste treatment plant, a school and gift shops.
The Prime Minister said the venture would comprise one of the largest residential projects to be undertaken on the island and that it was consistent with Government’s policy of ensuring that the tourism industry becomes everybody’s business.
Prime Minister Thompson noted that government would realise increasing revenue in the construction phase, from payroll taxes, property taxes, Value Added Tax (VAT), income tax and transport services.
“It will, therefore, capitalise on the enormous potential of this beautiful parish. It will involve the opening up of heritage sites and the careful enhancement of existing sites like River Bay, Cove Bay and Archers Bay. Major development will also take place at Harrison’s Point and North Point,” Mr. Thompson disclosed.
He further told the gathering that it would also result in the expansion of Speighstown, Six Men’s, Half Moon Fort and the surrounding areas.
“The ripple effect in my view of this project, will reach beyond the boundaries of St. Lucy, and affect all areas of the north of Barbados,” he said, stressing that the project was designed to ensure that St. Lucy ceases to be among the “Cinderella parishes” of Barbados.
He said ultimately it would lead to making life better for Barbadians everywhere and reducing traffic congestion in and around Bridgetown.
