The 280-room Treasure Island resort has gone on the market in a forced sale for US$15.45 million.
The company that owns the Seven Mile Beach property, Restoration Cayman Ltd., was put under receivership in November.
Secured creditor Scotiabank decided late last week to put the resort up for sale.
Real estate firm Re/Max listed Treasure Island at US$15.45 million following valuations from two independent quantity surveyors.
Kim Lund, owner of the real estate agency, acknowledged it was a knock-down price for a property of that size on Seven Mile Beach.
The Marriott resort, less than a mile away on West Bay Road, went on the market in January and is expected to sell for just over $100 million.
But while the Marriott has had significant recent upgrades and has the association with a world-renowned brand, Treasure Island is in a state of disrepair, with roughly a third of the rooms currently out of commission, says Mr. Lund.
“It needs a lot of work. When you look at the building and what needs to be done,” he said, “there is money that needs to be put into that property.”
He said the receivers were required to get independent valuations to sell the resort at fair market value.
“People knew this was coming and there seems to be a lot of interest already. We believe it will sell quickly,” he added.
Mr. Lund believes the sale of Treasure Island, which has 280 rooms and space for eight commercial outlets, represents an opportunity for someone to invest in upgrading the property and bringing something new to Seven Mile Beach. “It is in a great location, and if someone comes in and invests in the property and makes it a more viable entity, that bodes well for tourism,” he said.
Tourism Minister Moses Kirkconnell said the resort currently catered largely to extended stay guests, so the negative impact on available room stock for tourists would be minimal.
He added. “The property is situated in a prime location on the Seven Mile Beach corridor which could present potential buyers with an attractive proposition for future development.”
Harry Lalli, general manager of Treasure Island, did not return phone calls on Monday and has not commented on the situation at the resort since it went into receivership in November. Neither Tammy Fu nor Eleanor Fisher, of receivers Zolfo Cooper, responded to requests for comment.
A press release in November on behalf of the receivers said Restoration Cayman, the legal owner of Treasure Island, had been put under receivership by virtue of “powers contained in the security agreements entered into between the secured lender, Scotiabank & Trust and the company.”