Credit crisis grounds luxury realty project

It was planned as the most lavish millionaire's hideaway yet on a Caribbean island already crammed with spectacular beach-front mansions.

The offer of a palatial residence in the Four Seasons complex in Barbados, overlooking white coral sands, presented a rare chance for music moguls- turned-reality TV stars Simon Cowell and Andrew Lloyd Webber to gain a toehold on the island's exclusive "platinum coast", where Tony Blair, retail tycoon Sir Philip Green and film director Michael Winner regularly holiday in a climate that is 28 degrees Celsius and sunny almost all year round.

They are among several investors who have paid deposits on villas in the development, which cost up to $30 million (Dh110 million) each. The plans showed the best properties would come with an infinity pool on the terrace, a cinema, gym and even a cellar. A neighbouring Four Seasons hotel would provide room service and access to butlers, housekeepers, chefs, waiters, gardeners and night watchmen for an extra cost.

But that pampered dream, offered by established British developer and hotelier Mike Pemberton and his business partner Robin Paterson, does not look likely to be fulfilled in the near future. Construction on the project stopped at the height of the credit crunch in February. Now, the Prime Minister of Barbados, David Thompson, has stepped in to mediate in an attempt to get the project back on track.

Meetings

Thompson is understood to have held meetings with frustrated investors in the scheme on a recent official visit to London, where he attended the World Travel Market trade fair.

The high-level political intervention comes because it is not just the future holiday plans of the rich and famous at stake.

Thompson is concerned about the effect on the economy of an island that relies on British tourism and has been hit hard by the credit crunch.

"The prime minister has held talks with a number of people and has heard the concerns of those who have invested," said his spokesman Natasha King. "He has had discussions with those involved and he has tried to chart a way forward. Obviously, this is a project the government of Barbados would like to see come to fruition. We are hopeful things will turn around."

Cowell, who has a home in Holland Park in west London as well as a mansion in Los Angeles, is understood to remain patient with the developers but is keen for an end to the uncertainty. "Simon is relaxed about it and is hoping it will be sorted out sooner rather than later," said a spokesman for the X Factor executive producer.

But last week there was no sign of work restarting imminently. Scaffolding stood rusting on the shells of the villas and a warm Caribbean breeze blew through the unfinished roofs and unglazed windows of the beach-front homes that have been earmarked for Cowell and Lloyd Webber.

Viewed from Batts Rock beach, a popular tree-shaded spot for locals, the ambition of the 32-acre project is clear. Expensive coral block walls line the cavernous living areas and the largest properties stretch across 2,000 square metres.

Cinnamon 88 is the development vehicle set up by Paterson and Pemberton, both of whom have homes in Barbados. When work stopped, the developers issued a statement: "The global crisis, coupled with uncertainty about recovery time of the world economy, has resulted in a review of the scale and design, together with timelines for the hotel development."

Since then, a number of banks have examined the business with a view to investing, but none have yet gone public and at least one is known to have turned it down.