The hoped-for sale of the defunct Grand Atlantic housing development in Warwick has not materialised, according to Craig Cannonier, the Minister of Public Works.

A memorandum of understanding between Bermudiana Beach Resorts and the Bermuda Housing Corporation expired in March last year but was extended by the BHC because it was believed they were “close to closing on the deal”, Mr Cannonier told the House of Assembly.

The BHC is seeking now to put out a request for interest, the minister said, in response to questions from Progressive Labour Party MP Wayne Furbert.

Mr Cannonier added that despite the MOU being extended, it was not easy to secure financing for hotel construction.

“It was just another opportunity for us to put some sugar into this lemon situation,” Mr Cannonier said.