Atlantis Resort - More Kerzner Expansions Possible

By Tameka Lundy

(Reprinted from The Bahama Journal, April 12, 2006)

Although the expansive third leg of the mystical themed Atlantis Resort on Paradise Island is only at the mid-point, already there are hints being dropped about possible further expansion plans for the upscale property.

Mincing no words on Monday, Prime Minister Perry Christie said what many people have been pondering in their minds about the importance of Sol Kerzner's vision to the future of The Bahamas.

Before an audience of Kerzner executives - Sol and Butch included - government representatives and clerics, Mr. Christie said the country has placed a great deal of reliance in the continuity of the vision that Mr. Kerzner has and has backed it with accompanying resources.

Based on that notion, the prime minister appeared to muse about subsequent expansion plans for Atlantis beyond phase III that is currently underway.

"As we move to the future, this third phase really leads us into the vision or the question as to what is in Sol Kerzner's head for phase four and for that matter, given the scope of this, phase five. That therefore means that he is going to be with us for some time, at least I hope so, most certainly for Butch to be able to wear his shoes," Mr. Christie said.

The Kerzners would have invested well beyond a billion dollars into their Paradise Island property at the end of the current development.

The government and tourism leaders have picked no bones about the positive impact that the company's investment has had on the country's bread and butter industry; leading the way in training and wooing visitors in droves.

The expansion will feature two new towers: a 600-room all suite hotel tower and a condo hotel tower, The Residences at Atlantis, which officials say will take advantage of the prime beach property that it sits on.

Phase III will also feature a new waterslide attraction, a dolphin facility, a ballroom that is expected to be the largest, not only in the Bahamas but the Caribbean, and a new spa and sports centre.

The older Kerzner also paid homage to the partnership that his company has sealed with The Bahamas.

Additionally, he conceded that while the project is exciting, there is a whole range of complexities that make it challenging.

"It's just a host of issues when you see something like this being developed that one deals with every day and there's no way that we could succeed with what we're doing without the cooperation and understanding of government," he said.

Kerzner currently employs 7,000 Bahamians and by the end of phase III, that number is projected to rise to 10,000. That in and of itself, Prime Minister Christie admitted, is reason enough for him to be so effusive in his praise about the Kerzner investment.

"One need only travel in the region and look at developments there and then come back to the Bahamas, and feel good for what is happening here….The country has placed a great deal of reliance in the continuity of the vision of Sol Kerzner. The country has placed a great deal of resources behind the Kerzner organization," he said.

Kerzner International, which is considered a leading international developer and operator of destination resorts, casinos and luxury hotels, reported in its last results for the fourth quarter of 2005 that net income was $7.1 million, compared to net income of $8.4 million in the same period last year.

Butch Kerzner, chief executive officer, said strong performance of the Paradise Island operations drove the progress. At the time he reasoned that the record results, combined with the continued strong levels of demand for Atlantis and a solid balance sheet, serve as a powerful foundation for our next wave of growth on Paradise Island, the Phase III expansion.

Aquaventure is the first piece of Kerzner's billion-dollar expansion of Atlantis that includes the Residences of Atlantis condo hotel. Aquaventure stretches over 63 acres or rivers, rapids, water escalators, waves, water slides and a man-made lagoon for dolphin encounters called Dolphin Cay.

In another significant development, last month Kerzner announced that the company is being sold for $3.6 billion to a group of investors, which includes both Kerzners.

The company said in a press release that it is being acquired by the investor group for $76.00 in cash per outstanding ordinary share. Following the announcement, Kerzner's shares rose 11 percent.

The investor group also includes Istithmar, which is a significant shareholder of the company; Whitehall Street Global Real Estate Limited Partnership 2005; Colony Capital LLC; Providence Equity Partners, Inc.; and the related companies, L.P., which is affiliated with one of the company's directors.

Upon completion of the transaction, the company will become a privately held company and its common stock will no longer be traded on The New York Stock Exchange.

Return to Residences at Atlantis featured property listing here.