Jolly Beach for Pensions: Gov’t Proposes Bold Real Estate Investment to Secure Social Security
The Antigua and Barbuda government is moving ahead with a bold investment plan that would see the Jolly Beach Resort transferred to the Social Security Board as part of a long-term strategy to boost the pension scheme’s sustainability.
Prime Minister Gaston Browne announced that the 315-room beachfront property, spanning 27 acres and valued at EC$67 million, will be transferred to Social Security to offset a portion of a longstanding government debt. The debt stems from a $330 million bond issued in 2010, which has remained a non-performing asset on the Social Security books for more than a decade.
The proposed strategy involves selling the existing hotel units through the Citizenship by Investment Programme (CIP) at EC$900,000 per unit. This is expected to raise approximately EC$200 million, after administrative costs. An additional EC$75 million would then be invested to construct 200 new units on the property, with each unit projected to sell at EC$1.3 million—generating a further EC$200 million in net revenue.
In total, the government projects EC$400 million in revenue over ten years, averaging EC$40 million annually. Browne argued that this model significantly outperforms traditional fixed deposits, which yield about two percent annually.
The hotel’s operations would also factor into the revenue stream. Social Security could retain ownership and operate the resort, potentially increasing net earnings from the current EC$4 million to EC$10 million per year. Annual homeowner fees of EC$1,000 per unit are expected to contribute an additional EC$6 million annually toward maintenance.
Prime Minister Browne said that, even under conservative estimates, the real estate strategy would deliver superior returns compared to conventional low-yield investments. He also stressed that in the event of underperformance, the government would guarantee the value of the asset, offering a safeguard for the pension fund.
Critics of the plan have expressed concern over the risks of tying pension stability to tourism-related real estate. However, the government insists that stringent oversight measures—including independent audits, parliamentary reporting, and risk caps—will ensure accountability and prudent management.
The Prime Minister defended the move as part of a broader effort to diversify the Social Security portfolio and avoid past mistakes. He criticised previous administrations for failing to implement reforms or build an effective investment strategy, which contributed to the scheme’s past insolvency.
With Social Security now considered solvent following earlier reforms, the government sees the Jolly Beach plan as a strategic next step in securing long-term pension viability while revitalising a major tourism asset.
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Unstable impulsive indecisive leadership, make up as you go along, jolly beach shall be touted to be the panacea of all financial problems.
Fanatics shall hail Gaston as brilliant for such impulsive behavior.
Imagine if they used this to provide social housing to residents of Antigua or… crazier idea continue to run the hotel and make it better
This fool is at it again with the peoples money. I told y’all this dummy had already made up his mind when he challenged Lovell to a foolish debate. This man listen to no one.
Here we go again folks..Gatson Browne and his stupid decisions..and again, at the expense of tax payers money. Just like the Alpha, the foolish lait2020 deal, the Antigua Airways debacle, where he claimed he got “duped”, and every other stupid decision he has made over the past 11 years.
And oh, his decisions wasn’t too good in COVID either. He almost collapsed the economy with his foolish stay at home policies, in which he teargas his own citizens because they protest his draconian policies. Dumb dumb dumb, and dumber.
* decision, not decisions*
Arm, i thought that the article was saying we could go to jollybeach to live when we turn 65
The critics have no basis for their attacks. This island is driven by tourism, so to argue that our pensioners should not get more benefit from that sector, makes no sense. The success or failure oi SS is already tied to tourism. They claim that GB is a failure yet argue a government bond, initiated, in 2010, by the UPP, is better for SS than an investment in Jolly Beach. The private bond pays no interest for its first ten years and does not pay start (on paper)paying principal until 2030, yet its believed more valuable than an investment in Jolly Beach. They attacked him when he touted local ownership of banks. Events on the ground (speak to the share holders on ACB, ECAB)have shown he was right. Some may wish to argue the negatives during the transition but even the Trinidad owned bank had teething issues from its acquisition of Royal bank (see events in Saint Lucia)They attacked his move re Alfa Nero some calling it crazy. Interestingly US authorities are now using the same methods (see Amadea yacht). A&B treasury has netted some 20 million US, that GB critics close their yes to with some suggesting the money should be sent to Ukraine. They laughed at his push for housing, yet new home owners are now smiling at their new digs
What’s very disturbing @ Islanman26, is that it now seems that Browne’s inner circle of cabinet members are afraid of challenging ANY of his financial and political decisions.
They seem daunted, PUSILLANIMOUS, cowed and timorous by the Prime Minister.
You only have to look cross the pond in the US to find that Trump has his very own detractors that challenges his many wrongdoings; and in the UK Kier Starmer aldo has his detractors in the Labour party members, that take him to task on his disruptive policies, and so much so that Starmer has had to make a couple of U-turns in recent weeks.
However, our Prime Minister acts like he’s an all seeing and all knowing type of Guru that could NEVER be wrong.
His cabinet are weaker than weak, and his followers treat him like some sort of cult leader; and let us not forget those who’ve made vast gains by staying quiet, while the country continues to suffer. Heartbreaking!!!
“strategy involves selling the existing (315) hotel units… at EC$900,000 per unit. This is expected to raise approximately EC$200 million, after administrative costs.”
315 units x 900k == $283 M
Waooh ! This is 83M “administrative costs”.. for 315 sales!
Approx $265 000 administrative cost per sale! Expensive bureaucracy!
@Brix.
When I speak out against GB, some may think I hate the man, I don’t, but I’ve long known that this man is all talk, just from looking at many of his decisions, it is clear that he doesn’t have the island of Antigua at heart.. This man is as pompous and as selfish as they come, and for that I know he’s wrong for the future of Antigua and to be it’s leader going forward.
Many would say that Antigua has made great strides in the last 11 years, but I’ll be the first to let them know that Antigua should have been 10-15 years ahead of where they are today, if we had a unselfish leader in office. Antigua would have been way further, given the resources that were at the hands of this Government.
There has never been a time in Antigua’s history where more money and investments were coming into Antigua than the years between 2013-2020, where money was flying like rain after the economic recovery of America and the world by extension. I know this, because that’s when many of us in the diaspora made our moves to be part of the major investments that were happening across the Caribbean.
So I know Antigua was ripe for a big move, but Gatson Browne squandered it,and here he is 11 years later trying to blame the UPP.
This man couldn’t have come into office at a better time, couldn’t. And that’s why I have no respect for anything he says these days, because I know it’s all about pointing fingers to try and escape his own ineptitude.
So that’s why I speak out against this PM, because he squandered the many golden opportunities that were at his disposal.
All of the taxes that should have been collected from businesses, he didn’t collect them (to help his cronies if guess?). All the SS monies that were paid by workers to their employers, those moneys were not turned in ( for what reason he didn’t go after those companies?). He raise taxes and duties on those same tax payers after he failed to recoup those SS monies, in a effort to make up for his lack of a spine. This man with his own foolish decisions has crippled Antigua’s economy.
So yes, I’ll speak out against him all day.
@Islanman26 – stop with the lies. Social security has its own legal department. If you took the time to check the records you will see them taking employers to court