Bermuda land-holding company Solar Enterprises could be close to selling off undeveloped property it has owned in East Caicos since the mid-1970s if it can prove its boundary on the North coast reaches the high water mark.

But it is not the first time the company has sought to sell off the land which is its main asset. In 1998 the company was near to striking a deal with an American investor for nearly $7.1 million but that fell through for unspecified reasons.

Although the company, in its last annual report, indicated that it would ideally seek to sell the property for an overall price of $8.2 million, its real estate agent - Rego Realtors - had expressed the "informal view" that a more realistic price in the current market would be $5 million.

But the company reported that the lower selling price would still "produce a more than reasonable return on investment even after satisfying the real estate agent's commission" and other payments, for Solar's 72 shareholders.

Yesterday company president James Pearman told The Royal Gazette that the company - which was set up some 26 years ago to hold the property and has freehold title to 1,175.5 acres, or one-sixth of the island of East Caicos - could have another "interested buyer" for the property if it can prove that its boundary goes to the high water mark.

Although the interested party is in talks with Rego Realtors, Mr. Pearman said he did not know their identity.

Solar Enterprises, which listed on the Bermuda Stock Exchange in 1993 and traded from a high of $2.50 in 1997 down to its current low of $1.50, is the only freehold owner of property in East Caicos with the rest of the undeveloped island being owned by the Crown.

Although the land was bought with the intention of developing it, Mr. Pearman said that had not happened because of funding constraints.

Earlier this year, the company - which is one of the least traded on the Bermuda Stock Exchange with no shares changing hands since October, 1998 - could have faced a cash crunch with its annual report through March 31, 2002 and filed last week with the BSX, showing that current assets amounted to $24,133 but that current liabilities stood at $46,183.

But the company launched a share offering earlier in the year in order to give the company the funds to cover its annual expenses although it was still left with a $258,268.00 deficit.

Mr. Pearman said the share offering closed in September and although not all of the shares offered had been bought up, the company had secured enough funding to stay in operation "for some time".

Meanwhile the hope is that the company, in the next two years, will either sell the land or all the shares of the company.

Mr. Pearman said the sale could be struck as a share deal, instead of a land deal, because no stamp duty would be payable on a share sale.

As for what would happen to the company after the sale of the land, Mr. Pearman said that was a "bridge not yet crossed" but it would probably result in a shareholder dividend being declared.