One deposit made for Bermudiana Resort condo
The Bermudiana Beach Resort has officially secured a single deposit on one condominium out of its inventory of 94 units for sale, only months before its deadline for opening.
However, the Ministry of Public Works insisted that “the level of interest we are witnessing is high”.
Tours for potential buyers started in earnest in mid-January, with construction at the site expected to finish this July.
The Warwick resort, which was once an affordable housing development that failed to get buyers, is held by a Bermuda Housing Corporation subsidiary.
A statement from the public works ministry last week said: “We are happy to share that while we have officially secured one deposit on a condominium unit, the level of interest we are witnessing is high.
“Our sales team is actively engaging potential buyers through bi-weekly Sunday tours, which have been consistently oversubscribed, necessitating additional tours during weekdays to accommodate the demand.
“Upon completion of sales, we are projecting a total net revenue of $68.2 million. This figure reflects the project's financial viability and potential to contribute significantly to the local economy.”
Last summer, MPs were told that in total more than $92 million would be spent on the Bermudiana Beach Resort.
The Royal Gazette asked the Ministry of Public Works for additional details on the Bermudiana resort in Warwick, which remained unanswered as of press time last night.
We sought to clarify whether money from sales went directly to the Bermuda Housing Corporation, and if it would then be used to pay off the loan for its $35 million government guarantee.
We asked if, in the event that the condo units were not all sold, how the loan would be paid off, or if the Government would be on the hook for the $35 million?
We also requested a figure for the total amount of taxpayer funds that had gone into the resort as of this year.
Lieutenant-Colonel David Burch, the Minister of Public Works, told the House that between the costs of the original Grand Atlantic affordable housing property and costs for converting the property into a hotel, just over $64 million had been spent on the site.
Colonel Burch said that it was estimated that another $28,280,510 would be needed to complete the work, including $19.6 million for construction and $8.6 million for fixtures, furniture and other hotel amenities.
Asked at the time, how he could be sure taxpayers would make their money back, he said the hotel would be a success, with the BHC reaping some of the rewards to the benefit of the public.
Condos sold to overseas buyers can be occupied for up to 90 days a year.
The suites will be rented for the remainder of the year as tourist accommodation by Hilton Hotels, which has branded the resort as a luxury hotel in its Tapestry Collection.
Substantial public money has gone into the resort. The BHC initially committed $7.4 million to get the project under way — and a government guarantee of $25 million was approved last week, bringing the commitment to $35 million.
The former Grand Atlantic development, opened to the public in 2011, only managed to sell two of its units to Bermuda residents, with would-be buyers complaining about the asking price.
After a two-year fallow period, the site got the green light from legislators to grant concessions for a condo hotel.
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