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DBJ pushes to sell former Hedonism III
Published: Friday | December 16, 2011 1 Comment
A model at the former Hedonism III in Runaway Bay, St Ann. - File
The Development Bank of Jamaica (DBJ), through its agent PricewaterhouseCoopers (PwC), has embarked on a campaign both locally and overseas to push through sale of the assets of Runaway Bay Developments Limited, the company that owns SuperFun Beach Resort and Spa, the former Hedonism III in St Ann.
As part of the thrust, potential investors are being wooed with incentives such as tax breaks and import duty exemptions of between 10 and 15 years, although this depends on the number of hotel rooms that they take up. For hotels of 350 rooms or more, tax and import duties exemptions may be offered for up to 15 years, while those with less may be offered those incentives for up to 10 years.
readiness to sell
Emphasising their state of readiness to go to market, PwC's Wilfred Baghaloo, one of whom is dealing with the sale, told the Financial Gleaner on Monday that "we are about to place the property in the international newspapers," noting, however, that offers were being invited from both local and international investors.
The information memorandum produced by PwC for the sale also contain information detailing other benefits to those who take up the offer. It explained, for example, that "... no restriction exists under Jamaican law on the repatriation of capital, profits or dividends arising from investments (ie, by way of shares or the participation in the capital of a company) undertaken in Jamaica by foreign investors."
It added: "Neither does there exist any requirement for the registration of capital intended for investment in Jamaica with the Bank of Jamaica."
The property, which was placed in receivership earlier this year by first-ranked creditors to recover a debt of US$20 million, incorporates a 225-room hotel sited on 10.033 acres of land, as well as an adjoining property located on 3.176 acres. Those are the sole assets of Runaway Bay Developments Limited.
The DBJ holds controlling interest of 54.35 per cent in Runaway Bay Developments, Scotia DBG Investments owns 30.43 per cent, and SuperClubs, through Village Resorts, owns 15.22 per cent.
The hotel, located on a beachfront, has three swimming pools, three whirlpool hot tubs, a water slide, three bars, four restaurants, tennis and basketball courts, a fitness centre and night-club. It is managed by SuperClubs as SuperFun Beach Resort and Spa under an operating lease. PwC said earlier this year that the management contract would remain in effect until the property is sold.
Investors have the option of purchasing the property and renewing the lease with the existing operator, or finding a new operator under the existing or a new business model.
The hotel began operating in 1999 under the Hedonism III brand, known for adult entertainment, including at least two controversial nude mass weddings. The latest brand is a more conservative one oriented towards the family.
business@gleanerjm.com
Published: Friday | December 16, 2011 1 Comment
A model at the former Hedonism III in Runaway Bay, St Ann. - File
The Development Bank of Jamaica (DBJ), through its agent PricewaterhouseCoopers (PwC), has embarked on a campaign both locally and overseas to push through sale of the assets of Runaway Bay Developments Limited, the company that owns SuperFun Beach Resort and Spa, the former Hedonism III in St Ann.
As part of the thrust, potential investors are being wooed with incentives such as tax breaks and import duty exemptions of between 10 and 15 years, although this depends on the number of hotel rooms that they take up. For hotels of 350 rooms or more, tax and import duties exemptions may be offered for up to 15 years, while those with less may be offered those incentives for up to 10 years.
readiness to sell
Emphasising their state of readiness to go to market, PwC's Wilfred Baghaloo, one of whom is dealing with the sale, told the Financial Gleaner on Monday that "we are about to place the property in the international newspapers," noting, however, that offers were being invited from both local and international investors.
The information memorandum produced by PwC for the sale also contain information detailing other benefits to those who take up the offer. It explained, for example, that "... no restriction exists under Jamaican law on the repatriation of capital, profits or dividends arising from investments (ie, by way of shares or the participation in the capital of a company) undertaken in Jamaica by foreign investors."
It added: "Neither does there exist any requirement for the registration of capital intended for investment in Jamaica with the Bank of Jamaica."
The property, which was placed in receivership earlier this year by first-ranked creditors to recover a debt of US$20 million, incorporates a 225-room hotel sited on 10.033 acres of land, as well as an adjoining property located on 3.176 acres. Those are the sole assets of Runaway Bay Developments Limited.
The DBJ holds controlling interest of 54.35 per cent in Runaway Bay Developments, Scotia DBG Investments owns 30.43 per cent, and SuperClubs, through Village Resorts, owns 15.22 per cent.
The hotel, located on a beachfront, has three swimming pools, three whirlpool hot tubs, a water slide, three bars, four restaurants, tennis and basketball courts, a fitness centre and night-club. It is managed by SuperClubs as SuperFun Beach Resort and Spa under an operating lease. PwC said earlier this year that the management contract would remain in effect until the property is sold.
Investors have the option of purchasing the property and renewing the lease with the existing operator, or finding a new operator under the existing or a new business model.
The hotel began operating in 1999 under the Hedonism III brand, known for adult entertainment, including at least two controversial nude mass weddings. The latest brand is a more conservative one oriented towards the family.
business@gleanerjm.com
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