Sillerman Resort In Receivership
Lenders holding the mortgage on Robert F.X. Sillerman’s stalled resort development on the Caribbean island of Anguilla have reportedly taken over the project and appointed a receiver to handle its management.
Credit Suisse Group AG, which represents the investors holding the project’s $180 million mortgage, hired the receiver Feb. 1 to handle finding a buyer with the cash flow to finish building the resort, according to the Wall Street Journal.
“The efforts will continue to find new funding and probably new owners for the project,” receiver William Tacon told the Journal. “All options are open to do that.”
Project developer Flag Luxury Properties, described as an affiliate of Sillerman’s FX Real Estate and Entertainment, was unable to secure new lenders or buyers who could invest an additional $125 million to complete the project, the paper said.
The resort, dubbed the Baccarat Hotel and Residences at Temenos, was to include a 32-room hotel, 78 villas for sale and a Greg Norman-designed golf course but the project reportedly went into default in 2008.
Sillerman has reportedly spent $180 million on the project and $200,000 monthly to water the golf course.
Credit Suisse filed a lawsuit against Sillerman in New York court last May asking for $21.4 million related to the partially built resort.
The entertainment mogul also scrapped a plan last summer to build a $475 million, Elvis-themed Las Vegas hotel and casino through FX Real Estate because of the down economy.