(Trinidad Express) Chairman of Colonial Life Insurance Company (CLICO) Gerald Yetming did not disclose that his son, Gerard Yetming, was employed at commercial real estate firm CBRE, which was hired to sell the W Fort Lauderdale hotel in the United States.
Three months before the sale was concluded, after the allegation was made that the son of a CLICO director would “get a large commission”, Yetming told the board that his son was employed at the firm which was chosen to conduct the sale. The issue was brought before the CLICO board, in the form of a note, and was dealt with at a board meeting.
The Sunday Express was told that it was an “open secret in the market” that the hotel would be sold and real estate brokers were lobbying CLICO for the job. On October 23, the South Florida Business Journal reported: “The three-year-old W Fort Lauderdale Hotel & Residences is for sale.” It was also reported that CBRE was conducting the transaction and had marketing material on the property which featured 346 hotel rooms and 171 condo-hotels on the Fort Lauderdale beach. However, it was months later before the familial relationship reached the CLICO board. CLICO’s board minutes for June, obtained by the Sunday Express, under ‘Other Business’ stated: “The board considered a Note in respect of the appointment of CBRE on the context of the allegation that the son of a CLICO director would “get a large commission” on the sale of the Miami properties. The board considered its rationale for the pervious decision to engage CBRE, which included that CBRE had indicated that it could obtain a higher value for the property that its competitor and agreed to match the competitor’s fees.
The Chairman indicated that after CBRE had approached CLICO with its proposal he had inquired of his son as to whether he was involved in the particular transaction and was assured that he was not.” On the request of the CLICO board, CBRE then submitted a letter to CLICO in April 14, 2014 to indicate that while Gerard Yetming was employed in the company, he was not involved in the transaction.
However, the Sunday Express was told Yetming never declared a conflict of interest in the matter until the allegations were made. In response to a query yesterday, Yetming said CBRE was one of two firms considered for the engagement to sell the W. “There was no issue of conflict to declare. I had no interest and my son, though an employee of CBRE [one of 40,000], was not involved in this transaction. His noninvolvement was obtained orally from CBRE, and confirmed in writing at the request of the CLICO Board,” he answered. The W Hotel was sold for TT$234 million on July 15 to Miami Dolphins owner Stephen Ross’ New York-based Related Fund Management. RRERF FL Condo Owner, a firm affiliated with Ross’ Related Companies, made the purchase.
The W Hotel, developed in 2009, was once managed by Capri Resorts, part of Miami-based DYL Group. During the CLICO Commission, it was revealed that the company was called DYL, the D standing for Duprey (former CL Financial chairman), John Yanopoulos (the CEO of DYL) and CLICO director Geoffrey Leid. It was also revealed that the cost of construction was US$430 million. The sale of the W Hotel, also follows a formal offer made by CLICO and CL Financial to Consolidated Energy Limited (CEL) to sell its 56.53 per cent shareholding in Methanol Holdings Trinidad Ltd last Thursday. Consolidated Energy is a local holding company that combines the interests of German companies Proman, Man Ferrostaal and Helm. It has a 43.47 per cent stake in MHTL. The 56.53 per cent shareholding in MHTL was valued at US$1.175 billion (TT$7.485 billion) by the Europe-based International Court of Arbitration. The sale has to be conducted within 60 days. The Sunday Express learnt that right after the sale is conducted, CEL will put about 40 per cent of its shareholding of MHTL on the market.
