Kerzner International Holdings unloaded three resort properties, including the 3,300-room Atlantis Paradise Island, its flagship property in the Bahamas, to Toronto-based Brookfield Asset Management as part of a debt-restructuring deal.
In addition to Atlantis, Brookfield has acquired the One&Only Ocean Club, Bahamas and One&Only Palmilla in Los Cabos, Mexico.
Brookfield, a real estate conglomerate and one of Kerzner's lenders, assumes $175 million of Kerzner's debt in a debt-for-equity swap.
According to published reports, Kerzner has some $2.6 billion in mortgage debt.
"For some time now, we have been actively engaged in constructive discussions with our various lender groups to improve our company's capital structure, optimize the value of our assets and position Kerzner for sustainable long-term growth as a global management company," Chairman and CEO Sol Kerzner said.
Kerzner will remain in control of all aspects of running the businesses, and the resorts will continue to operate as they always have, a statement said.
Kerzner will continue to manage the three properties.
"Kerzner International has shifted its forward business strategy from that of owner/operator to that of a management company, under which it will continue to grow the Atlantis and One&Only brands worldwide," Kerzner said in the statement.
This includes capital expenditures, keeping the properties up to date, creating new facilities and restaurants and continuing marketing programs "to create a platform for future growth," according to Kerzner.
Kerzner International is the largest employer in the Bahamas, with more than 8,000 employees, accounting for 5% of the labor force and an annual payroll of $189 million.
Those jobs will remain secure despite the shift in ownership, according to Bahamas Prime Minister Hubert Ingraham.
Ingraham told the House of Assembly in Nassau that Brookfield's cash flow and balance sheet "permit it to provide essential financial capital at a time of global economic and financial uncertainty, which will ensure the continued employment of the Kerzner staff."
Kerzner International entered the Bahamas as Sun International in 1994, acquiring the Paradise Island Resort owned by entertainer Merv Griffin.
Atlantis opened in 1998 with 2,300 rooms and the largest manmade marine aquarium in the world.
The casino became the largest in the Caribbean and was the pioneer at the time for being the first casino with sprawling windows.
In 2007 the resort underwent a $1 billion expansion, including adding the Cove Atlantic condo-hotel, the Reef Atlantis dolphin center and the 63-acre Aquaventure water park.
Follow Gay Nagle Myers on Twitter @gnmtravelweekly.