THE National Provident Fund (NPF) has now taken ownership and control of Tavanipupu Island Resort in east Guadalcanal.
Deputy general manager Mike Wate confirmed this to the Solomon Star yesterday.
“Yes, the resort’s ownership and operations are now in the hands of NPF,” Mr Wate said.
The move follows failures by the shareholders of the resort to repay a $15 million they borrowed from NPF in 2012.
It’s understood one of the shareholders, Pamela Kimberly, who has been running the resort’s operation has moved out early this year and now residing in Honiara.
The resort was made famous by Prince William and his wife Catherine who spent a night there during their 2012 visit to Solomon Islands.
Mr Wate said Tavanipupu is now the best rate resort in Solomon Islands in terms of future returns for NPF.
“The title of this 13-hectare island resort is now transferred to NPF,” Mr Wate said.
“As we had reported in mid-2014 through the media and to the National Parliament, the SINPF board has exercised its right under our loan agreement with Tavanipupu Resort to recover its money, when they defaulted on their third scheduled interest payment.
“The board instead of waiting for the maturity of the bond in 2018, called up the $15 million loan plus all outstanding accrued interest and penalty charge in July 2014.
“Part of that call up is the transfer of the title of the island to NPF as a guarantee for the loaned amount,’’Mr Wate said.
He said whilst the title of the island is under the name of the SINPF board, the current shareholders of the company have the option to buy back the island within two years to September 2016.
“The settlement price will be at the default $15 million loan plus all past interest and charges, plus new interest accruing at 12.5% pa until payment, plus any increase in value of the resort as a result of NPF running the resort,” Mr Wate explained.
“During the two year period, if an acceptable investor is identified by SINPF or by the shareholders of the resort who has a good offer, both parties will consent to the sale.
“In the event of a sale, NPF will recover everything in para 3 above first.
“If the current shareholders do not take up their option of buy-back, the resort will remain in SINPF Board name and resort will be 100% owned by the SINPF thus greatly improving SINPF position to own both the resort and the company.
“The importance of owning the resort brand name is important for marketing purposes as this is a known product overseas.
“The current DCC government has placed the importance of our tourism sector as one of the strong drivers of our economic development.
“The SINPFB action to take ownership of the resort and the company to protect our investment and improve our future income and returns, dovetails well with our government policy,’’ Mr Wate said.
By DENVER NEWTER