An exclusive spa and resort due to open for business next year has been put up for sale for $18.5 million.

The Lantana resort in Sandys is on the market even though it has been closed for business since the late 1990s and has been undergoing redevelopment since February 2005.

An ambitious scheme to create a resort that will boast 40 hotel suites, six private residences, six yacht club villas, 17 beachfront villas, and a 25,000 sq. ft spa and conference centre was unveiled 18 months ago and the breaking of ground on the project took place last year.

The reason why the still unopened 9.6 acre resort has now been put on the market through Bermuda realty company Coldwell Banker is not known, however the Royal Gazette has learned that the resort has been marketed for sale in the US for a number of months.

Repeated attempts by this newspaper to contact Lantana's spokesman Douglas Tufts in Ontario, Canada, to discuss the situation have so far proved unsuccessful. A company representative on Island said any comments regarding the sale would need to come from Mr. Tufts. The Lantana was listed on the itinerary of the Abercrombie and Kent Destination Club as a resort where its club members would be able to spend vacation time. However, last month Tanner & Haley, the company's new identity, voluntarily filed to reorganise under Chapter 11 of the US Bankruptcy Code.

The destination club pioneer has stated it remains in operation and intends to fulfil its commitments to members once it is on a "sound financial footing".

What impact Tanner & Haley's bankruptcy filing has had on the Lantana's plans, if any, is not known.

Tourism Department permanent secretary Marc Telemaque last night confirmed the Tourism Ministry had been made aware of the sale of the resort.

And John Harvey, CEO of the Bermuda Hotel Association, said he was also aware of the sale but had no idea as to why the resort was on the market. The Lantana was one of the first cottage colony resorts and opened in the 1950s having been developed by the late John Young, who died in May aged 90.

Right up until Mr. Young reluctantly shut Lantana's doors in 1998 the resort kept its reputation for friendliness and excellent service.

It has been closed since then, but work began last year on the redevelopment of six private residences and 14 hotel spa suites.

The Lantana development team consisting of American principals Don Burkett, David Wilk and Laird Bunch acquired the property in June 2004 and quickly announced their intention to create a world class resort facility with a 25-berth slip marina, gourmet restaurant and yacht club, tennis club and an enlarged man-made beach.

Speaking last August, Mr. Bunch announced: "The private residences have been pre-sold, and marketing has started on the yacht club and beachfront villas at the new sales office located at the property."

It had been anticipated that the new resort would open for business in late 2007.