Who is Robert FX Sillerman? He is very big stuff, a media and entertainment billionaire in the
And so we come to
Greg Norman at the 2003 groundbreaking ceremony
The hotel was originally projected in 2003 to be coming on stream in 2006.
Local dignitaries at the 2003 groundbreaking
In the event, the golf course and club house were both ready by 2006. But, not any part of the hotel or villas.
Club house and golf course at its 2006 opening
Late last year, even before the markets crashed and the world economies began to be exposed to fears of recession and depression, catastrophe struck. In August, we learned that the entire project was suspended indefinitely. All the hoopla about the resort being branded as a Baccarat Hotel has fallen through. I have my doubts that Baccarat is any longer associated with the closed hotel project. Once the announcement was made of Baccarat’s involvement, a website had immediately gone up. Over last summer, the website went completely inactive. Now the Baccarat hotels website does not even link to or mention anything about Baccarat Anguilla. Nor does the Temenos Anguilla website have any mention of the Baccarat hotel. All references to it have been removed.
Feverish moves during the last half of 2008 to obtain the necessary further financing to complete the project do not appear to have resulted in any real progress. And, now the world economies are sliding into a depression that is estimated by many commentators to be likely to last for at least the next year, perhaps two or three years. Meetings between the principals of Temenos and the government of Anguilla as recently as this month have not produced any news of new funding coming on stream to permit the project to pick up steam again. The construction company, Ashtrom, have departed, and the imported Chinese workers packed and housed 20 to a container are slowly trickling back to
Meanwhile, in December 2008, the Hon Victor Banks presented a budget for
So, I wondered, what has really happened to block Flag Luxury Properties out of the Minister of Finance’s
Credit Suisse was the last lender to the project that I could find. They put in a reported US$180 million in March 2006. Sillerman reportedly came up with additional financing for the project at the same time. The project was originally estimated to cost some US$200 million. So far, a reputed US$500 million has been invested.
Flag Luxury is owned by a company called FX Luxury. Flag Luxury, FX Luxury and FX Real Estate are so intertwined that I have been unable, even after multiple readings of this website, to untangle the relationships. Perhaps you can do better.
From yet another site, we learn who the directors of FX Real Estate are. They are, principally, Robert FX Sillerman as Chairman and CEO, Paul C Kavanos as President, and Barry A Shier as Chief Operating Officer. Sillerman is the founder of SFX Entertainment from which he made most of his money, upto and including its sale to Clear Channel Communications in August 2000. Kavanos is the founder of Flag, and previously developed Ritz-Carltons in the
More searching of the internet reveals that FX Real Estate is not doing well. In the past year alone, its shares have dropped in value from US$8.00 to 10c.
FX Real Estate
An SEC filing of 5 November 2008 tells us that FX Real Estate appears to have lost its option to acquire the Elvis Presley Estate.
Subsequently, a December 2008 release informs us that FX Real Estate has defaulted on a US$475 million loan from Credit Suisse. As a result, the company appears to be at risk of losing its Las Vegas properties. It seems to me that these business reverses must negatively impact Mr Sillerman's ability to find the further resources needed to revive the Flag project in Anguilla.
Various government press conferences and speeches in the House of Assembly in November and December of last year indicate that some five to six million
All in all, it is not surprising that the Hon Minister of Finance has ceased to factor into his projections for income in 2009 the Flag Luxury Properties hotel development project at
The likelihood is that Sillerman & Co have much more important business to attend to than little old
Now, the word on the street is that the remaining golf course workers have not been paid for weeks, and are very upset and worried about their future. Who can blame them?
So, who is thinking of playing golf now?