The Guyana Marriott Hotel is still aiming for a December opening however the long-awaited US$27 million debt financing agreement between Atlantic Hotel Inc (AHI) and Republic Bank Ltd (RBL) of Trinidad has yet to be finalized.
Executive Director of the National Industrial and Commercial Investments Limited (NICIL), Winston Brassington disclosed yesterday that the Trinidadian bank is “close to finalising the documentation for this financing.”
The paperwork is currently holding up the Hong Kong businessmen, Victor How Chung Chan and Xu Han, from finalising their one-off payment of US$8 million for their 67% equity in the hotel. Brassington stated that once the security documentation for the US$27 million debt financing was finalised the two investors would be making their payment. He did not disclose when he expected the
security documentation to be concluded. Once this is done the ownership of the hotel project would be concluded. Until such time AHI, the special purpose company set up by the Guyana Government, will maintain controlling interest in the project.
Brassington told Stabroek News that both investors have visited the project in the past with the most recent being in July. He did not comment on the investors’ feedback on the length of time the project has taken to be completed, nor did he convey any concerns the investors shared over the project as it stands presently.
After months of non-disclosure the private investors were finally revealed in May. Once the investors were named the long-awaited approval of the debt financing by Republic Bank was supposed to be concluded. It is unclear at this stage why this process has taken so long and if the bank has any concerns over the project.
In all, Brassington has said, NICIL is responsible for putting just under US$20M into the project, including US$4M in equity.
In May, a joint statement by AHI and RBL disclosed the completion of the financial arrangements by Republic Bank for a syndicated borrowing of US$27M.
According to AHI and RBL, Ace Square Management Ltd, an affiliate company of ACE Square Investments Ltd, was selected to operate the Entertainment Complex and secure the outfitting cost, estimated at a minimum of US$4M. Additionally, they said Ace Square Management Ltd will guarantee a minimum financial performance of the Entertainment Complex, consistent with the October 31, 2012 Feasibility Study conducted by HVS International, which found that the project has an overall rate of return of 11%.
The controversial hotel project, which has faced intense criticism and scrutiny, was last scheduled to be opened by August and is now slated for a Christmas opening. There was a slowdown in the work that was being done at the Kingston site leading up to August, however there has been a spurt in the last few weeks with the exterior fence being constructed and work ongoing with the drainage.
AHI and RBL identified Hong Kong businessmen Chan and Han as the beneficial owners of the shares in ACE Square Investments Ltd, and the owners of the shares in ACE Square Investments Ltd, through a BVI-registered holding company, Big Splendor Limited.
They described Chan as having diverse and substantial investment interests in both Hong Kong and China. He was listed as an Executive Director of the REXLOT Group and the single largest shareholder and Founder and Director of the REX Resources Group. The former is said to be the leading lottery system and distribution company in China, with extensive operations in China’s lottery market, through its local subsidiaries and international joint ventures, while the latter is said to be primarily engaged in gold, coal, rare earth and other metals, mining exploration and development, both in China and internationally.
