The final funding agreements for The Bermudiana development on South Shore are expected to be reached before the end of the month and construction work should start on the project in May.

This according to Robert MacLellan, chief executive officer of developer MacLellan & Associates, which plans to transform the old Grand Atlantic site in Warwick into a luxury condominium hotel.

The developers have also been in talks with the site’s vendors, the Bermuda Housing Corporation, about the possibility of having some of the America’s Cup teams stay in a few of the apartment blocks on a short-term basis.

Mr MacLellan told The Royal Gazette that the America’s Cup link-up was feasible because the developers had always planned to undertake the full resort conversion works on a phased basis.

“It is unfortunate that the debt finance component for the project has taken so long to be sourced”, said Mr MacLellan. “Initially, we had expected greater support from some of the local Bermuda-based financial institutions but we had to reach out to international sources, which usually involves a longer and more complex process.

“I am happy to confirm that we are now in final-stage negotiations with a US-based pension fund for the debt finance component and I am confident of having the completed terms agreed this month.”

The equity finance component for The Bermudiana project was fully committed to by Swiss investors in April 2015, just before the Bermuda Government outlined the fiscal concessions for the project.

Planning permission for the conversion design and resort facilities has already been granted, which developers say would allow a local contractor to commence work on site in May of this year.

Mr MacLellan added: “Unlike many other British Overseas Territories, Bermuda grants fiscal concessions for resort projects by specific act of parliament, rather than by simple cabinet resolution, and this can lengthen the overall project financing process.

“I expect to have that formal grant of fiscal concessions completed shortly for The Bermudiana, in similar fashion to other recent projects.”

The Bermudiana Beach Resort is believed to be the first example of residential property being converted in to a resort in Bermuda.

The Bermudiana condo hotel project involves only the 78 condos currently built.

The redevelopment will be undertaken in a series of phases and is expected to net condo owners a “reasonable rental income” when they are not in residence.

After the conversion, eight condos become resort public areas and operations areas, and the 70 remaining condos provide 104 hotel suites and rooms.

Phase one is planned to include all the resort facilities, with a minimum of 21 condos or 31 hotel suites and rooms. The new development will include 100 hotel suites as well as a bar, restaurant, spa and swimming pool for patrons.