Cotton Bay Estates & Villas - Weathering The Storm

He described the construction slowdown as a prudent business decision based on the knowledge he had, saying, "I've talked to economists and financiers at various banks, first they were looking at the third quarter '09 for the recovery to start; now they've moved that back towards the end of the fourth quarter."

The Eleutheran had the opportunity recently to speak with Wim Steenbakkers, Managing Director of Cotton Bay Estates & Villas, who was able to provide us with a comprehensive update on the status of the much heralded project. In concept, "Cotton Bay Estates features 114 estate lots, from which buyers may choose ocean view, ocean and Caribbean views or interior home sites on which to build a dream home. Cotton Bay Villas will offer one-, two- and three-bedroom villas available for purchase that will be part of the Starwood Luxury Collection hotel. Designed by Wimberly, Alison, Tong and Goo, in collaboration with Paula Fox Interiors, two-and three-bedroom villas inspired by Eleuthera's natural vegetation and pristine beaches will surround Cotton Bay's 27,000-sq. ft. clubhouse, complete with tennis, swimming, a fitness center, retail, a restaurant and a lounge. Situated on a lake, one-bedroom Zen Suites will allow residents to relax with their feet in the water while lounging on their patios." Initially slated for opening in 2007, Mr. Steenbakkers was clear that the project was in a very deliberate, slow-down phase. Citing the downturn in the US economy and an "enormous glut" in the real estate market, the developer says the current time frame now looks like the end of the fourth quarter 2009 but he also added "We're not tied into that". "The project is at a stage currently where a number of buildings under construction are being closed up with windows, doors and roofs to protect them against the elements." He said in an interview this month. He described the construction slowdown as a prudent business decision based on the knowledge he had, saying, "I've talked to economists and financiers at various banks, first they were looking at the third quarter '09 for the recovery to start; now they've moved that back towards the end of the fourth quarter." Mr. Steenbakkers continued "Let's say we finish at the end of this year - you are in deep trouble, because you are probably towards the bottom of that cycle [referring to the current US economic slump and glut in real estate] - and you're going to have tremendous operating losses… that's why we slowed down the construction completely, because that did not make sense. And it's been said, why don't you go to the European market, but that's a very, very small segment of what our major market is - maybe five (5) or six (6) percent - so the more prudent thing to do is to really slow it all down and weather the storm". The executive insisted that despite lower than expected sales to-date, he sees the outlook in general as good. "We are behind [in sales] - there's no question about that. We had anticipated a greater sales volume, and that is, I think, in part due to what is happening in the economy. The enormous inventory and choices people have - Florida, Bahamas, Turks and Caicos, and the rest of the Caribbean, there's a whole lot out there right now and there's good competition in Central America like Panama, Costa Rica and Mexico." His good outlook however, comes from an analysis of the demographics of his target market, the baby boomers. He sees another great number ready to retire in another year and with that a potential expansion of their market. The executive believes the Cotton Bay project is positioned correctly to be ready when things take off. In regards to the island, Steenbakkers voiced sound commitment to Eleuthera, highlighting its current high popularity and expressing the belief that because of its legacy, many people are looking at the island as a great retirement and vacation destination. Underlining that Cotton Bay is very sensitive when it comes to the Environment he was adamant that their boutique style development is a better fit to the island rather than a mega resort such as Four Seasons in Exuma, saying; "Albert Sands before he passed away had a very good vision to do things - because one of the biggest challenges is getting people to work in the construction as well as later in the very high end service level that these resorts require. He (Albert Sands) said, let's start small, so we (the community) can grow with the development, rather than bringing in all these people from the outside, which would really upset the social fabric of the island." In wrapping up our forthright conversation, Managing Director, Wim Steenbakkers, remarked, that part of what he is doing, is putting together the operational side of the small boutique hotel and resort. He is confident that there are many young Bahamians and Eleutherans who left the island to further their education or to seek better jobs and in the process have been very well trained - just looking for the opportunity to return home. In addition he hopes to capture young people coming out of high school that do not plan to go to college and instill in them the work ethic that is commensurate with what the service level at a hotel as this would require. He ended, "We've already identified a great number of people and there too I am pretty optimistic."

Copyright, The Eleutheran News Agency 2008-2010.

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