Kovats ‘not selling’ despite $3bn lawsuit dispute

By YOURI KEMP

Tribune Business Reporter

[email protected]

A developer suing the Bahamas government for $3 billion is moving ahead with other projects despite the uncertainty surrounding its interests.

Dr Mirko Kovats is not planning to sell any of his Bahamas-based properties amid his $3bn lawsuit against the government – while there have been claims the sellers have not been paid.

Dr Wolfgang Groeger, speaking on behalf of the Kovats family office, told Tribune Business that they would “like to set the record straight” on some of the misunderstandings about their interests in the Bahamas.

He said of Treasure Cay’s vendors and the purchase of the property: “Mr. Charles Nafie (project architect) has been paid 100 percent and exactly as agreed.”

Dr Groeger was responding to complaints from a salesperson who was employed by Charles J Nafie Architecture and Design that he had not been paid for his appearances.

Dr Groeger added: “You appear to confuse the payments owed to Mr.

However, in emails seen by The Tribune, the architect claimed the payments had been made.

Dr Groeger also said: “Treasure Cay’s development is hindered by unnecessary government interference in a ‘private commercial transaction.’

“It is the full responsibility of the Government of The Bahamas for all damages done to The Bahamas, particularly North and Central Abaco stakeholders, including local employment and investors. You should be aware of the lawsuit filed, citing damages of exactly $3,127,157,550.00 that must ultimately be paid.

“Bondholders have been made aware of this contingent sovereign debt risk. US court filings will result in more interesting revelations.”

Turning to another property currently under review, the Southern Ocean property that was claimed to be permanently blocked, Dr Groeger noted that “seven to 10 years and after hearing some sworn witness testimony, there may be a final judgment , at least more.special interest disclosure.

“Please be aware that the 2013 development profit assumptions outlined in the CBRE Information Memorandum filed at the behest of CCIWPP (Canadian Industrial Workers Pension Plan) vendors will be much higher for 2022 or even 2023, no lower…”

He continued: “Real estate prices for 2022 in New Providence are up 30 percent, even in Sandyport, which is in no way comparable to Albany, Southern Ocean and other luxury developments.

“Albany West could generate approximately $500,000,000 in developer profit for Albany/Joe Lewis/CCIWPP, thus strongly supporting our damages calculation.

“We simply took as the basis of our damage claim CBRE’s excellent and professional information memorandum, which consists of three hotel developments, including an apartment hotel, apartments, golf course residences, marina, golf course, village commercial marinas, staff quarters, employing thousands of once fully functional Bahamians.

“Unlike Albany West, a sleepy condo and land subdivision project with the sole purpose of generating hundreds of millions in quick cash.”

Regarding the equally controversial The View at Love Beach project, Dr Groeger said: “We are in the process of ‘modernising’ the overall design of the development, working with a successful Miami developer to become more ‘contemporary’ in South Florida.’ style.

“The current volatility of rising prices and unreliable supplies and costs of construction materials, as well as financing costs deterring potential buyers, result in us monitoring developments in 2023.

“While in the design development stage, the start of construction will be decided by the markets.”

Despite the challenges facing these respective projects, Dr Kovats does not plan to sell any of his properties in the Bahamas and plans to “develop all properties including Treasure Cay and Southern Ocean in due course”.

“We are here to stay,” said Dr Groeger. “We strongly believe in the potential of the Bahamas, being aware of the significant improvement potentials that we expect to come one way or the other.

“We are uncorrupted and non-political, which naturally makes things more challenging.

“The financing of any project is not a problem, but it may depend on the findings of the ‘vetting’ of the history of some actors.

“We believe that 2023 – the year of our 50th anniversary of independence – will be a wonderful ‘new day’ for our beautiful Bahamas and its wonderful people.”