The Jumeirah Group could be replaced by a North American hotel brand to run a $1 billion resort at Morgan's Point, it emerged yesterday.

Craig Christensen, one of the three owners of Southlands Ltd., confirmed the resort project is "moving forward". However, this could be without Jumeirah.

Mr. Christensen said Southlands Ltd. has now partnered with an internationally-recognised development group, which is likely to want to bring their own preferred brand to the table.

The identity of the developers will be revealed with an official announcement "within the next three weeks", he said.

However, it is understood an 'agreement in principle' is in place.

"They are experienced developers who have built the best resorts by far, in the regions where they have undertaken projects," said Mr. Christensen. "We are talking five-star and higher, the top echelon here."

He said the reputation of the developers was such that the partnership would attract international capital.

"Having a developer on board is going to be critical in turning things around at Morgan's Point and in obtaining finance, because the financiers have looked at the developer as a bankable person with whom they have had previous relationships with," said Mr. Christensen.

"Because of their reputation they are able to attract capital to the table. You are not going to finance any projects in today's market without an experienced and reputable developer."

But asked whether Southlands owners Brian Duperreault, Nelson Hunt and himself would have come up with the capital otherwise, Mr. Christensen said credit was already in place.

"The interesting thing is, we have interest in finance here already without that developer partner on board, because of the nature and excitement that this project delivers to the world market," he said. "But an extreme amount of hard work and effort in travelling has resulted in us being able to identify funding for the project."

He added: "We certainly have people interested in putting the capital on the table."

When asked whether Jumeirah was still on board to manage the new resort, Mr. Christensen said: "Not necessarily. Our development partners have their own branded partners they prefer. It is more likely to be a far more recognisable North American brand at this stage, bearing in mind the economic climate and where the majority of our tourists come from.

"Jumeirah still want to be involved, very much so. We've got a great relationship with them. But we don't necessarily believe they have the necessary marketing reach into the North American market that we require at this stage."

Mr. Chistensen said that the choice of hotel operator would be a mutual decision between Southlands Ltd. and the developers. "Jointly we will decide on the appropriate branded partner to bring to the table," he said. "And we will come up with a new name for the hotel."

Regarding contractors, Mr. Christensen said they were likely to be brought in from other regions as "fully-bonded contractors" were required, but that some local contractors may also be needed.

"I don't know if we have anyone here who has that horsepower to have that type of security bond," he said. "But the developers may also partner with a local group. Morgan's Point is a major development so there is likely to be more than one contract being offered. We have the hotel to build, the marina and the golf course."

Mr. Christensen said he understood Government was on the verge of awarding a contract following an RFP (Request for Proposal) for the multimillion dollar environmental clean-up.

Government has said previously that the clean-up of pollutants and dumped chemicals at the former US baseland will be borne by taxpayers. "I understand a contract is due to be awarded shortly," said Mr. Christensen.

However, he said the environmental remediation of the site would not hold up plans for the hotel, which may be built simultaneously. "We've identified areas to develop the hotel which are outside of the polluted areas, so the clean-up should not create a major impediment to start construction," he said.

Southlands Ltd. hopes to break ground by summer 2010.

"The timescale really starts at the moment we can get title to Morgan's Point," said Mr. Christensen. "We hope it will be very soon. We've had discussions with Government, which is to get Southlands in the exchange."

He said the resort will cost "north of $1 billion" and is likely to feature two five- to six-star hotels with a similar capacity to the Fairmont Southampton. In addition, there are plans for 400 residential units, some of which will be of fractional ownership in a private residence club.

Mr. Christensen said it was hoped the marina could also be developed on a scale to accommodate 80-100ft 'mega-yachts'.

"We've had studies done as to the profile and movement of the mega-yachts in the Caribbean and North American region, and how many of them move to the Mediterranean in the summer," he said. "We think Bermuda could be an ideal place for them to sojourn. The Island could be their base in the summer months.

"This would be spectacular for Bermuda tourism because of the demographic profile and spend of these passengers."

Mr. Christensen said the initial blueprint for the resort also includes a "world-class branded spa" and an 18-hole golf course.

"We will have a world-class golf course," he said. "The Government is desirous of having it at trophy level, which is in excess of championship level over 7,000 yards. "It would certainly be capable of taking a PGA event."

He added the vicinity of Morgan's Point to the water would also mean a variety of watersports on offer. "We are all excited about this project," he said.