Receivership of Coral Beach & Tennis Club, and Horizons and Cottages is to end on Friday, with either the mortgage holder, Swedbank AB New York, taking over of the leasehold, or its purchase by a third unnamed party.

KPMG had been appointed receivers of the Coral Beach along with Horizons in September of this year, and then began to actively seek a purchaser.

In the commercial courts yesterday, Puisne Judge Stephen Hellman presided during a brief hearing where the application for the discharge of the receivership of Coral Beach and Horizons was made.

Lawyer David Kessaram, speaking for Swedbank — the plaintiffs in this application — told Justice Hellman that on Friday, either the mortgagee will take over the property or it will be sold to a third party.

Mr Kessaram told the judge: “We can’t say at this stage which is going to happen.”

He continued: “Come what may, receivership is going to come to an end.

“It is not opposed. The defendants do not object,” he said.

Mr Kessaram then asked for the receivership to be discharged, and Justice Hellman agreed to the application.

This is the latest chapter in the Paget properties’ struggle to find a developer. The exclusive beach and tennis club along with its neighbouring cottage colony was purchased by a New York-based firm called Brickman. Lawyer Kevin Taylor, representing Brickman, was in court yesterday to listen to the application.

According to its website, Brickman was formed in 1992, and is 100 percent owned by its principals Bruce S Brickman and Kathy Corton. The website states among its strategies are purchasing distressed assets — loans and real estate owned — from financial institutions, and purchasing high quality, multi tenant, small floor plate office buildings in major markets.

According to Royal Gazette stories that have followed the saga, Brickman had purchased a 200-year lease for the 26-acre resort and cottage colony in 2007, with a loan which ended up being held by Swedbank. The lease was purchased from the properties’ owner, a company that in turn is owned by George Wardman.

As part of the lease purchase, Brickman had agreed to annual rental payments of $1 million for the Horizon lease and $1 million for the Coral Beach lease for the next 45 years.

However, Brickman scrapped plans to redevelop the club as a Four Seasons 150-room resort and residences, blaming the global economic crisis, and in 2012 began efforts to sell the club to its members at a price tag understood to be $28 million.

A Royal Gazette story at the time stated: “As part of the ‘equity conversion’ plan, members would have to make an investment of $35,000 (resident) or $20,000 (non-resident) and take on at least $5.5 million in debt owed by the club’s US operator, Brickman Associates.”

Members balked at the plan, and in September, the property went into receivership.