The owners of 9 Beaches are now advertising internationally for investor partners to carry out a planned $80 million redevelopment of the resort.The 18-acre West End resort, which closed in 2010, is among at least half a dozen Bermuda tourism properties that are struggling to find investment funding or buyers in the tough global economy.It’s being marketed by Rego Sotheby’s International Realty and Jones Lang LaSalle, who are also agents for the South Shore site of the former Sonesta resort, which has now been put up for bid.“This is to close an equity gap,” said David Dodwell, one of the 9 Beaches owners. “It is a capital call to raise additional funds to allow us to do the redevelopment, it is not a sale.”The 9 Beaches resort is owned by IRC Sandys, which also includes Russ Urban, Mike Mellor, and Tom Childers. Nordica of Canada is a development partner.Mr Dodwell said they decided at this stage to look beyond the group to find additional capital given the tough economic climate.The offering includes the assets and development rights of the 9 Beaches property, including assumption of a 240-year lease from Government, already constructed improvements, a Special Development Order (SDO) and substantial concessions, including tax abatement, duty relief for construction and other materials and additional incentives subject to formal request.Payments for the 240-year lease are $1 million a year for the first seven years and a final payment of BD$8M in year eight, and one nominal “peppercorn” each year thereafter.The current SDO and master plan envisions 69 hotel units and 114 condos available to overseas and local buyers.“The property is currently improved with 84 cottages including 26 that are entirely over water,” the listing says. “Other improvements and infrastructure including water systems are in place and available for reuse or redevelopment.”The listing notes: “Originally characterised as an eco-resort, it focused on the peninsula’s natural beauty by offering efficient cottages either with direct ocean views or located directly on the water.“The current leaseholders have completed significant work to plan, entitle and master plan a new project on the site aimed at providing a high quality resort for tourists and more affordable purchase options for Bermudian and international buyers, a market segment with high demand and little supply.“In 2010, Government approved an SDO for 9 Beaches including density of hotel and hotel/residential units, permission for basic amenities and a baseline understanding between the current leaseholders and the Government regarding infrastructure and quality.“The Government, in line with Bermuda’s need and desire for new hotel product, approves of the completion of 69 hotel units, most of which are refurbished cottages per the current plan, prior to delivery of for-sale residential product. The SDO enables the subdivision of the property into six parcels allowing the future sale of developed product and phases.”The listing says the current leaseholders are in “advanced stages of planning and have assembled the necessary government approvals short of applying for building permits”.And using the existing cottages and other structures at 9 Beaches, the new developer would have additional construction savings.“Construction cost savings and the structured lease payment schedule lower upfront investment costs and increase the potential for favourable return on investment, especially when time-value-of-money is taken into consideration,” the listing says.“Given the advantages 9 Beaches creates, the developer of the property will be able to build new product at a discount to competing projects. In turn, the developer may offer product at a more favourable price point, deepening the pool of buyers to push into the larger middle-class income buyer pool including a substantial supply of local buyers.”The plan presented to Government includes four phases and just the first phase needs to occur in specific order and produce a minimum of 69 hotel units.New construction during phase one may be minimised by refurbishing existing cottage structures. The other phases may occur as the developer and market conditions dictate.The listing adds: “The current leaseholders are amenable to partnering with investors to continue the existing or a modified master plan for the property. 9 Beaches presents an extraordinary opportunity to bring an established or new boutique concept and hotel flag to Bermuda.”Cost assumptions outlined in the Rego Jones Lang LaSalle brochure include: Cottage upgrades — $195,000 per unit, amenities $2 million, hotel bar and restaurant — $1.9 million, club bar and restaurant $2.9 million, marina — $700,000, hotel reception and office — $700,000, and condo/villa construction costs of $300 to $350 a square foot.