By Gareth Finighan
Coral Beach & Tennis Club and Horizons & Cottages have been sold to a subsiduary of New York-based Three Wall Capital in partnership with ROC Group.
Two flagship Bermuda resorts have been snapped up by a New York-based boutique hotel investment firm.
The Coral Beach & Tennis Club and its sister property, Horizons & Cottages, went into receivership earlier this year. In September receivers KPMG sought a new buyer.
A spokesman for the properties has confirmed that a sale had been agreed with a subsidiary of Three Wall Capital, CBC 2013 LLC, taking over the properties in partnership with ROC Group, an investment firm also based in New York.
KPMG managing director Charles Thresh said: “Following a ten-month receivership period, it is extremely satisfying to have concluded the sale of the operations of both the Coral Beach & Tennis Club and Horizons & Cottages on a going-concern basis.
“The Coral Beach & Tennis Club is a landmark Bermuda property and Members’ Club, and is of significant importance to the Bermuda economy. As such, it is particularly pleasing to have been able to operate the club successfully on a “business as usual” basis and achieve this sale, putting the club and properties in the hands of new owners to secure a long term future.
“We would like to thank all of the loyal staff for their unwavering efforts and support throughout the receivership period, at what can be a difficult and uncertain time for employees. We also extend our thanks to the dedicated membership of the Club, and its suppliers, whose continued patronage and support was vital throughout.
“We wish the new owners, CBC 2013 LLC, every success with their acquisition.”
Three Wall Capital CEO Alan Kanders said: “We are thrilled to be taking over Horizons & Cottages and Coral Beach & Tennis Club in Bermuda.
“Both Bermuda and Coral Beach Club have been synonymous with luxury, service and hospitality for a number of years. As the new owners of Coral Beach Club we seek to pay homage to the past yet firmly embrace the standards the world has come to expect in 2014, we intend to create a product all Bermuda can be proud of.”
Mr Kanders is a former managing director of Lehman Brothers, the New York global investment bank which collapsed in 2008, In a letter to members, Mr Kanders and Roderick O’Conner of ROC Group added: “This purchase will enable our many loyal members to finally have the comfort and stability one comes to expect from their club.
“The Coral Beach & Tennis Club is an amazing facility and we are honoured to be the new stewards of this world class property. We have many plans for the future of CBC which we are anxious to share with our members in the New Year. It is our intention to open channels of communication with all those who have questions.”
The final price of the purchase was not disclosed yesterday. When investors were first invited to submit bids back in September, a spokesman for real estate agent Jones Lang LaSalle said that no set price had been attached, adding: “It is whatever the market will bear.”
The sale was welcomed by Premier Craig Cannonier, who said: “Today marks another vote of confidence for Bermuda and our tourism product. The sale of the Coral Beach & Tennis Club and Horizons & Cottages to the Three Wall Capital and the ROC Group is further evidence that the country is moving in the right direction. Both properties are vital to our tourism industry.”