Preferred bidder emerges for Palmyra
Published:Wednesday | August 28, 2013 | 12:00 AM
Jon Haldane, managing director of the firm Sheldon Good & Company Limited, confirmed Tuesday that a preferred buyer has been found for the unfinished Palmyra condominium complex in Montego Bay.
However, he says discussions will continue with all selected bidders until the main prospect has signed on the dotted line and the sale has been approved by all parties involved.
Palmyra was placed in receivership by National Commercial Bank Jamaica and RBC Royal Bank Jamaica.
Well-placed sources tell Wed-nesday Business that the preferred buyer is a Mexican company.
"We are currently negotiating with a number of parties, and until that process is completed, that is all we have to say. We have signed confidentiality agreements. Until we have finalised with someone, all contracts must be looked at," said Haldane.
Sources close to the talks indicate that a deal may happen within two weeks.
Previous efforts to sell the property at auction last year were unsuccessful.
Palmyra was taken over in July 2011 by NCB and RBC, which accused the developers of defaulting on US$110 million of principal loans - US$22 million of which was financed by RBC while the other US$88 million was arranged by NCB.
Conceptualised by developer Robert Trotta, construction of the condo complex was launched in November 2005.
Palmyra is designed as a 288-room hotel/condominium complex encompassing three towers, two of which were completed.
INCOMPLETE CONSTRUCTION
At takeover, it had 103 owners of individual condos, with 97 units remaining for sale on the two completed blocks, known as Sabal Tower and Silver Tower.
The shell of a high-rise hotel designed for 88 studio suites, called Sentry Tower, and 11 three-bedroom villas were at varying stages of completion.
The receiver for the property is Ken Tomlinson of Business Recovery Services Limited. Sheldon Good is associated with Racebrook Marketing Concepts, the company hired to market the Palmyra.
Trotta sued the banks earlier this year to recover the property, and is claiming losses of US$110 million.
NCB has said it will defend the lawsuit, and that the bank would be taking steps to recover the loan.