This article is from the Australian Property Journal archive
SABINA Corporation has decided not to go ahead with investing in the $1.6 billion Port St George Resort Project in Long Island, Bahamas.
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:”;
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin-top:0cm;
mso-para-margin-right:0cm;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0cm;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:”Calibri”,”sans-serif”;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:”Times New Roman”;
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}
In August Sabina and its consultancy arm, G8 Consultants Pty Ltd signed a letter of intent to establish a “merger” between the resort developer P.S.G. Limited, by purchasing a 30% stake in the project.
Sabina chairman Peter Chen said after carrying out detail due diligence assessment and reviewed the master plan, G8 Consultants have recommended a number of changes to make it viable and has also arranged full funding for the project from China.
“A letter of intent had been issued by the funder to confirm its interest in providing the full funding for the whole project; with an initial first tranche of $US35 million to pay for the land acquisition.
“Ian Moorcroft, the Principal of PSG who is based in UK, had encountered some internal disagreement amongst its shareholders and was unable to proceed with the original conditions stipulated by Sabina.
“As a consequence, Sabina was offered the opportunity to buy 100% of the site and to take on the development on its own. The board has resolved to decline the offer and to withdraw from the venture completely since its stipulated terms including a `private placement cannot be met by PSG,” Chen said.
Instead Chen said Sabina will focus on the two smaller projects on hand, the Wellness Resort & Eco Village ($22 million) and Kooralbyn Village ($10 million).
Property Review