800 acres on East Coast earmarked for “city” development

Feb 20, 2020 News

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– investors cagey as sod turned on US$100M two-hotel project at Ogle

– specialty hospital, another gated community announced

Investors of an ambitious two-hotel project at Ogle are confident that they have the experience to make it happen.

While not immediately confirming that it will be Hilton-branded as disclosed by Government officials last week, the investors, which included New York-based Guyanese, Edmon Braithwaite, said that negotiations are advanced with international hotel brands.
Braithwaite and his partners, including US developer, Mike Elliott of Energy Real Estate Solutions (ERES), have purchased almost 21 acres of lands at Ogle, behind the former headquarters of the Guyana Sugar Corporation, where they intend to put up two hotels, a mini golf course, pool and other amenities, including retail space.
This new venture, according to the state-owned National Industrial and Commercial Investments Limited (NICIL) would have seen the lands being sold for some $26M per acre, above what state evaluators would have assessed the lands for.
NICIL’s Business Development Officer, Rachael Henry, made it clear yesterday that the impending elections have no bearings on the decision now to announce and turn the sod on the project.
Last week, a similar event was held for the AC Marriott Hotel, at lands alongside the Ogle Access Road.
That 150-room hotel would cost US$75M and is being developed by John Aboud, a Syrian who has made Trinidad his home. He purchased 2.61 acres for over $26M per acre.
The timing of the projects has the Opposition suspicious with questions raised about whether the developers actually had permission from the Marriott and Hilton owners.
However, Henry yesterday again insisted that NICIL has the capacity to conduct its due diligence and has several layers before its Board of Directors gave the blessings.
In fact, the developers have timelines to make their projects a reality or face the lands being seized.
In the case of the project by Caribbean Marketing Enterprises Incorporated (CMEI), it was disclosed that Braithwaite was the one who brought together seven investors including Elliott, who has just completed a hotel in Argentina and are involved with ones in Antigua.
Elliott said that his company, ERES is a real estate service, investment and development company with seven offices internationally.
At the event yesterday were Minister of Finance, Winston Jordan, tourism officials and NICIL’s Chief Executive Officer, Colvin Heath-London along with his Board members.
It was disclosed, yesterday, that very shortly, the developers of Windsor Estate will also be launching Phase Two of the gated community project.
Dr. Mahendra Carpen, it was also announced, is also involved in a major project to build a specialty hospital to target heart and other illnesses.
The land for that are between Ogle and Lusignan. It once belonged to the Guyana Sugar Corporation but was transferred to NICIL a few years ago.
According to Henry, yesterday, about 800 acres, formerly sugar lands, are up for development between Ogle and Lusignan.
Meanwhile, Braithwaite made it clear that negotiations for the brands are ongoing and it would not be a good time to confirm.
Last week, officials said that it is Hilton-branded.
Yesterday, Minister Jordan lauded the confidence and traced the development of Guyana over the last five years.
He pointed to the growth rate in 2019, of 4.7 percent, the best since 2014, and with diversification that is taking place with oil now a bonus.
He said that the confidence is such that one bauxite company has signaled interest in building a smelter if natural gas is brought to shore, making energy cost cheaper.
Over the weekend, NICIL disclosed details of the CMEI project on those 20-plus acres.
“The project will include the construction of two branded hotels uniquely positioned in a complex driven by solar power, therein consistent with Guyana‘s “green economy” vision. CMEI will construct the hotels in the 120-130 room range with world class amenities inclusive of a miniature golf course, clubhouse, entertainment centre, swimming pool, solar farm and green space allocation.”
It was disclosed that a solar farm will be built on 7.5 acres of the Ogle property with a club house/entertainment centre and mini-golf course to take up another five.
The two hotels will be on the remaining acres.
The plot is said to be not far from where the AC Marriott site is.
Guyana is facing an unusual, though not unexpected problem…it is running out of hotel rooms fast.
In fact, the government-owned Marriott Hotel at Kingston does not have enough rooms. Its 197 rooms are filled to capacity, a number of them on contracts- a far cry from struggling in 2015 when it was first commissioned and there was no oil.
Other local hotels have reported brisk business too, all thanks to the oil production that has started.
Currently, ExxonMobil, which together with its partners have developed the first oil field in Guyana, is building a headquarters right at Ogle.
That area, with a regional airport close by, is becoming hot property now with other development planned for the area.

 

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