Purchase offer made on Holman Grand hotel

Ryan Ross
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Less than a week after the Holman Grand hotel closed, the provincial government has confirmed someone has offered to buy it.

Less than a week after the Holman Grand hotel closed, the provincial government has confirmed someone has offered to buy it.

On Friday, Innovation Minister Al Roach said he didn't have much information about a potential deal, other than Cominar REIT, which owns the land the hotel is on, contacted the province to say someone had submitted an expression of interest.

"Like everybody we're going to have to wait to hear from Cominar and whoever the purchaser is," he said.

Homburg Invest Inc., which owns the hotel, has been under creditor protection for more than a year and has been working with court-appointed monitor Deloitte & Touche as it restructures.

In July Homburg Invest Inc. announced plans to start trying to sell the hotel.

Cominar REIT owns Dyne Holdings, which in turn owns the land under the Holman Grand and leases it to the hotel.

That lease has been cited in reports from the monitor as part of the reason for sustained losses at the hotel.

Roach said the purchase will be a package to buy both the hotel and the land, although he didn't know any specific details related to the sale.

"I haven't seen an offer," he said.

Despite not having much information at this point, Roach said any purchaser would eventually have to contact the government.

"We do hold some lending money on that property."

That money amounts to about $16 million Homburg Invest Inc. borrowed from the province to build the hotel.

The P.E.I. government has a mortgage guarantee on the amount Homburg Invest Inc. borrowed.

rross@theguardian.pe.ca

twitter.com/ryanrross

Organizations: Homburg Invest Inc., Holman Grand hotel, Cominar REIT Dyne Holdings

Geographic location: P.E.I.

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Comments

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Recent comments

  • Chet
    November 10, 2012 - 05:56

    I do not recall Roach telling the public this hotel was for sale. I will not be shocked when we see how outrageous the deal is for the purchaser.

  • grumpie
    November 09, 2012 - 20:48

    well PEI, should get twenty five cents on the dollar, oh well, Alberta will give you the other seventy fife cents, they shouldnt though, after all how many of you condem Alberta over the oil sands, where the money will come from.

  • oh a guarantee from a bankrupt entity
    November 09, 2012 - 20:06

    "We do hold some lending money on that property" says roaches, what the heck does that sentence mean???? Well vote Liberal we have a former bank teller as Finance Minister and a traffic cop who should be writing tickets lending out millions. Accountants and lawyers throw away rule books and join government stealing from immigrant applicants, lending money where banks won't and the future is even dimmer. Poor Ghiz , the conflict between vice and virtue was never grimmer. thanks eh

  • The hotel is more worthless than the Ghiz government
    November 09, 2012 - 19:04

    So the government loaned $16 million for a $24 million hotel built on leased land that opened last summer, was assessed by the government as worth $9m this spring and this fall is bankrupt and closed?

  • Don't sell
    November 09, 2012 - 17:41

    The provincial government thinks they need to spend $16 million on a new office building for themselves. They are now the proud owner of $16 million worth of units that are spitting distance from province house. Take the room #s off the doors and put name plates on them. Lemonade from lemons.

  • Concerned Taxpayer
    November 09, 2012 - 16:47

    Was this the plan all along?

  • Slyfox
    November 09, 2012 - 15:29

    16 million owed to government +3 million owed to contractors + 1.5 million for the land=20.5 million to break even.Can not see that happening.Tighten your belt a little more taxpayers your going to be paying the difference.

  • Morons
    November 09, 2012 - 15:01

    According to this article the land lease is one of the reasons for the sustained losses at the hotel. What kind of moron lends $16 million to a company to build a hotel on land they don't even own? Heads must roll! In addition the hotel has apparently been appraised at less than $10 million and $3 million is still owed to the contractors. Where is all the taxpayer money Mr Roach and Mr Ghiz ?

  • it's the receiver selling the dump
    November 09, 2012 - 14:15

    Al Roaches knows nothing about allot of things. .........The receiver is conducting the disposal of the bum properties but the liens will have to be paid before transfer of title can occur. thanks eh