Barbados TravelAdvisor

The saga surrounding the sale of the now ruined King’s Beach Hotel is about to come to a happy, but incomplete ending.

In an arrangement being managed by Scotiabank Barbados, a deal for the acquisition of the St. Peter property for $32 million is to be sealed on September 13, Barbados TODAY has confirmed.

But investigations also revealed that in a new twist to the long running affair, three non nationals resident in Barbados, Anthony Reid, Michael L. Challis, and Marcus J.F. Clarke, who allegedly pulled out of a May 30, 2008 contract to buy the property for almost $65 million, will now be sued for about $33 million in damages.

This, sources connected to the deal said, would be pursued next month on completion of the current sale to Atlantic Paradise Limited, which owns The Great House, an upscale “two storey plantation style home” located to the south of the hotel.

These developments were confirmed by King’s Beach Hotel owner Martin Richards, who said he was happy there would finally be some closure to the matter, and that like his neighbours he was disappointed to see the hotel fall into disrepair, a matter he said was not his responsibility since he had turned responsibility over to the bank so a new buyer could be found.

Richards said he was aware of the sale of the hotel property by next month, and that while the property would have to be knocked down, he was uncertain if previous plans to construct 32 luxury condos would be continued by the new owners.

“The property was supposed to have been sold to Marcus Clarke, Anthony Reid and Michael Challis in 2008, they didn’t complete their contract and as a result the Bank of Nova Scotia was asked by me to try and sell the property,” he said

“In the first instance they entered into a contract with BJ Investments, which I opposed and that was dealt with in the High Court ... and (it) refused the bank’s application to sell.

“So the situation continued, that took a year to resolve and subsequently the bank has now entered into another sale agreement, which does not have to be sanctioned by the court, and the property will be sold on the 13th of September, 2011 to Atlantic Paradise Limited, who I understand is connected to the ownership of The Great House, the neighbouring property to the south of the hotel,” Richards added.

The owner said he was “pleased in a sense that the property has been sold and that something’s positive is going to happen to Kings Beach, albeit I am not quite sure what the new owner’s plans are”.

But he was “disappointed”, however, “that the original contract for sale for $65 million was not completed and actually would have resulted in a higher sales price being achieved”.

“I see this figure the property has been sold for as probably being realistic in this market, but I think that hadn’t it been for the fact that the King’s Beach hasn’t had a whole series of articles written about it that we may have achieved a better price for it,” he stated.

“From speculation and rumour comes concern and I believe it is quite likely that a number of interested purchasers would have stayed clear, but on the 13th of September the property will be conveyed by the bank acting in its capacity as first mortgagee and that will provide some closure to the situation.”

Richards did not want to go into detail about the pending moves to claim damages from the previous purchasers, but said it would be pursued.

“It provides closure, but of course the three people that didn’t complete the contract we intend to make sure that they will now be held responsible for the difference between what they contracted to buy it for and what it has actually been sold for,” he said.

“They are being sued for specific performance of their contract and when the bank completes the sale that litigation will continue, only now that damages will be sought rather than specific performance of the contract.”

Richards also demised media reports, which he said suggested he had allowed the hotel to become “run down”.

“It’s not been my responsibility to do anything to it because I had that responsibility taken away, firstly by the appointment of a receiver that was then removed and then by virtue of the bank’s debenture and their possession order,” he said.

“I share the frustrations, as the owner of King’s Beach, of the neighbours, in that the property has been allowed to get into such disrepair. But for the two to three years the property hasn’t been in my possession. I share the frustrations of the neighbouring land owners because of course I am one myself and it is a shame to see the King’s Beach Hotel in the state it’s in.”