By the Caribbean Journal staff
Brookfield Asset Management will assume Kerzner International’s ownership interests in the Atlantis Paradise Island resort, along with the interest in the One&Only Ocean Club resort, which is also on the country’s Paradise Island.
Kerzner has entered into an agreement in principle with its corporate lenders, including a fund owned by Brookfield, which will oversee ownership of these assets subject to management contracts with the company.
Asset manager Brookfield has agreed to exchange $175 million in debt for the equity of the companies, which also include the One & Only Palmilla resort in Mexico.
“This transaction will permit Kerzner to move forward as a management company, allowing us to get back to doing what we do best — designing and managing world-class destination and luxury resorts under the Atlantis and One&Only brands,” said Kernzer Chairman and CEO Sol Kerzner. “As part of this agreement, Kernzer will enter into a management contract with Brookfield to continue managing the day-to-day operations at Atlantis Paradise Island, One&Only Ocean Club and One&Only Palmilla.
Kerzner said that, as manager of these locations, the company would control all aspects of running the businesses and that they would “continue to operate as they always have.”
The company will continue to own the Atlantis and One&Only brand names and retains the right to develop more resorts under those names.
“For some time now, we have been actively engaged in constructive discussions with our various lender groups in order to improve our company’s capital structure, optimize the value of our assets and position Kerzner for sustainable long-term growth as a global management company,” Kerzner said. “Today’s announcement is an important step towards that goal, allowing Kerzner to substantially reduce debt and streamline our balance sheet and operating structure.
Brookfield has approximately $150 billion in assets, with a focus on real estate investment.