Developers hope to start work 'imminetly, with month's end target, eyeing Christmas 2009 for opening

The $1.3 billion Albany Golf & Beach Resort's developers yesterday told The Tribune that if pre-sales went well, they would start construction of the project's Phase II this year as well. providing a further $400 million boost for this nation's construction industry.

Christopher Anand, Albany's managing partner, said the developers were working to "a pretty aggressive timetable" that would ultimately complete and open the project's hotel, marina, amenities, infrastructure and initial residential units by Christmas 2009.

Acknowledging the Government's work in bringing Albany to fruition, especially over the Christmas holiday period, Mr Anand said Albany hoped to begin construction work "imminently", the ideal start date being "by the end of this month".
-Government has been really proactive, working with us as partners should, and we hope we can begin imminently," Mr Anand said. "The goal would be by the end of this month."It's not a moment too soon. The global economy is not in good.shape."

The 'project site has already been cleared to enable Albany's contractors, who include Bahamian companies Cavalier
s„truction, TARM Corporation and Mosko, to start construction work immediately on infrastructure such as the roads and marina, the golf course, and initial hotel units.

Mr Anand said Albany had estimated that the infrastructure and amenities work would involve $250 million of construction work, and if sales went well, Phase II - the condos, apartments and luxury residences - would begin this year. That, Mr Anand said, was worth another $400 million in construction contracts.

"It's going to be a meaningful impact, at least for the construction industry,” Mr Anand said of Albany. "If our sales go according to plan, we will actually start Phase II this year as well. That's our goal - to start Phase II. Everything's designed: now we just have to sell it."

Phase II will include 10 major apartment buildings situated around the marina, Mr Anand said.
Albany already has commitments from its 80-90 founders, and Mr Anand said the developers hoped the project would be open by Christmas 2009, something he acknowledged was "a pretty aggressive timetable".

Albany was sufficiently well-capitalised, and had financing in place, to not be affected by the global liquidity and credit crunch, Mr Anand added the only potial negative impact this might have, he acknowledged, was on potential real estate buyers being able to access mortgage financing at the right price - or at all.

However, Albany's clients will be among those best-placed to access financing, given that they will be among the lowest credit risk as high-net worth individuals, with access to extensive liquid cash resources of their own. Albany has also been working with several financial institutions to ensure the availability of suitable mortgage products for its potential clients.

Mr Anand said Albany had obtained all its necessary subdivision and Ministry of Works approvals in principle. The 'in principle' relates to the performance bonds that the developers will release to the Ministry oncethe re-routing of south-west Bay Street is resolved. "The bonds are in place. They've not yet been released to the Ministry by us, because we're just waiting to settle the road issue, but that will be formalised pretty quickly.

"With Albany having signed the Hotels Encouragement Act agreement with the Government before Christmas, the only remaining issue to be decided is the price the Government, using funds provided by Albany, will pay to private landholders to acquire property necessary to reroute south-west Bay Street away from the resort development.The Government has already compulsorily acquired the land and owns it, the final act being to pay the landowners their funds and vest the land in the Crown -something that merely involves registering the land.Mr Anand said that the Government had received the appraisals valuing the land to be acquired, and had offered the landowners a price 30 per cent higher than the average price of the two appraisals.

Albany has been projected to inject a cumulative $1 billion in extra gross domestic product (GDP) into the Bahamian economy over its first 12 years of existence, creating a total of 1,100 jobs once it becomes fully operational.
The economic impact assessment, conducted in conjunction with the former government, had shown that the Albany Project would generate 700 permanent, full-time jobs. A further 400 "indirect and induced" jobs would be generated from entrepreneurial ventures and other spin-offs.

The economic study also showed that Albany would generate $400 million in property taxes for the Government during its first 12 years' in existence, with the $1 billion GDP impact over the same timeline coming from both the construction and operational phases.

In 2017, the Albany Project is expected to generate $67 million in annual GDP from ongoing operations alone, according to the economic impact assessment.

Source: The Tribune