Negotiations between a US timeshare developer which was planning to takeover the St. George's Club have broken down over financing for the deal.

US timeshare developer Great Vacations Resorts was unable to secure local funding for the project and now St. George's Club developer-owner Alistair Woolf is looking for a new buyer.

Great Vacations Resorts had originally planned to fully purchase Mr. Woolf's interest in the east end timeshare and signed a letter of intent in September.

After Great Vacations could not come up with the money, Mr. Woolf and the company worked out a joint venture agreement in early December.

Under the 50-50 arrangement Great Vacations would have been responsible for marketing, developing and managing the club, while Mr. Woolf would have been responsible for government relations, planning approvals and the mortgage relationship with Gibbons Deposit Company.

Gibbons Deposit apparently turned down Great Vacations proposal for financing their part of the deal, and the company was unable to proceed further.

"I regret the deal fell down on the financing issue,'' Mr. Woolf said. "All other terms had been finalised. We have gone on from there and are dealing with other parties.'' Mr. Woolf has since advertised the timeshare in five industry magazines and said he has so far received 35 inquiries which he would be considering.

Bert Blicher of Great Vacations told The Royal Gazette negotiations had broken down two weeks ago.

"We had the financing,'' he said. "We were set to close the deal.'' The company was still ready to begin negotiations with Mr. Woolf again.

"We did not part as enemies,'' he said.

Mr. Woolf agreed. "The door is open if the financing issue is resolved.'' Great Vacations was originally owned by Mr. Blicher, Herb Alfree and Russ Brown of RBC Enterprises, a timeshare sales and marketing operation with 12 resorts in the US and 250 employees.

Mr. Brown has since sold his interests in Great Vacations to the Mr. Blicher and Mr. Alfree who wanted to focus the company on timeshare development an RBC spokesperson said.

Tourism Minister David Dodwell expressed disappointment that the deal had not been completed.

"I'm disappointed that the deal had not come to fruition,'' he said, adding that he was aware of a "major player'' in the timeshare and vaction club business which had expressed interest in taking over St. George's Club.