Troubled Coral Beach sold to US firm
The troubled Coral Beach and Tennis Club has been taken over by US investors.
New York-based CBC 2013, a subsidiary of Three Wall Capital and ROC Group, has taken over the resort, just over a week after it came out of receivership.
Alan Kenders, CEO of Three Wall Capital, said: “We are thrilled to be taking over Horizons and Cottages and Coral Beach and Tennis Club in Bermuda.
“Both Bermuda and Coral Beach Club have been synonymous with luxury, service and hospitality for a number of years.
“As the new owners of Coral Beach Club we seek to pay homage to the past yet firmly embrace the standards the world has come to expect in 2014
“We intend to create a product all Bermuda can be proud of.”
Three Wall Capital is boutique hotel investment firm with interests including the Mayflower Inn and Spa in Connecticut and the newly-opened New York luxury property The Quin.
The Mayflower Inn has won a prestige Conde Nast Traveller’s Readers’ Choice Award as best in America. ROC Group is a New York investment firm focused on real estate.
Premier Craig Cannonier said: “Today marks another vote of confidence for Bermuda and our tourism product. The sale of the Coral Beach and Tennis Club and Horizons and Cottages to Three Wall Capital and ROC Group is further evidence that the country is moving in the right direction.
“Both properties are vital to our tourist economy.”
Joint receiver Charles Thresh, of accountants KPMG, said: “Following a ten-month receivership period, it is extremely satisfying to have completed the sale of the operations of both the Coral Beach and Tennis Club and Horizons and Cottages on a going concern basis.”
The resort went into receivership in September after the lease was bought by New York-based Brickman in 2007.
Brickman had a 200-year lease for the 26-acre property, bought with a loan held by Swedbank.
But plans by the firm to redevelop the club as a Four Seasons 150-room resort were scrapped by Brickman, which blamed the global financial crisis.
A 2012 bid by Brickman to sell the club to its members with a price tag understood to be $28 million fell through and Coral Beach went into receivership.
Professional services firm KPMG were appointed receivers and began looking for a new buyer.
Earlier this month, the receivership was formally ended after a hearing in the commercial courts.
Lawyers for Swedbank AB New York, which held the mortgage on the property, said then that by Friday, December 13, the property would be taken over by Swedbank or it would be sold to a third party.
Three Wall Capital was founded in 2008 and is led by Mr Kanders, a former managing director of Lehman Brothers investment bank in the US, which went bankrupt in 2008, helping to trigger the global financial crisis.
Three Wall Capital has completed more than $400 million in transactions in the past 36 months in both advisory and principal investor roles.
ROC Group, founded in 1991 by Roderick O’Connor, specialises in buying up real estate assets held by banks, government agencies and other financial institutions in the US.