Negotiations are underway with a potential buyer for the closed Lantana Colony Club.

The owners of the Sandys property, which shut its doors just over a year ago, are currently talking to two groups interested in a possible deal.

And one of the organisations, who are both from overseas, is about to enter a due diligence period for the potential purchase of the waterside cottage colony.

Yesterday, Paul Leseur, who is in charge of the sale, said both groups wanted to operate the nine-acre site as a resort.

"We are working with them,'' he said. "I think we are making good progress and hopefully it will be sold shortly. It is encouraging.

"We have had a lot of interest in the property. Now we are very close with one of these parties.'' The positive news comes after a possible sale fell through in January with US-based James M. Dwyer Real Estate Investment and Development, who already own the White Sands Hotel.

Lantana, which has a 120-bed capacity, features cottages in a garden setting, small beach and central clubhouse. It has been empty since its closure but has been maintained by the owners.

It closed in mid-season, with the loss of 60 jobs, after owners blamed financial difficulties and low occupancy -- becoming the 41st hotel closure since 1977.

Up to two thirds of the workers have since found new positions.

Mr. Leseur, who is related to owner John Young, said the Lantana property currently on the market is separate from a four-acre residential complex nearby.

The overseas group is expected to enter into a 90-to-100-day due diligence period, involving an inspection of the property. Mr. Leseur said the sale was in its early stages.

Lantana, which was praised for its friendliness and quality of service, lacked the resources of some of the large organisations to compete in Bermuda tourism, according to former general manager Adam Leseur.

At one point it was voted in the top five hotels in Bermuda by a US travel magazine.