Harcourt Developments is set to pay €25 million for a Bahamas resort that has been the subject of a dispute between timeshare investors and its previous owner.

The company, whose principals include developer Pat Doherty and former broadcaster Mike Murphy, has agreed to buy the Royal Oasis Resort on Grand Bahama for $33 million (€25 million).

Royal Oasis has lain idle since it was damaged by Hurricane Frances in August 2004. Harcourt originally bid for it last year but talks halted when the parties failed to agree on various conditions. The company re-entered talks to buy the 427-acre property earlier this year. The deal is expected to take several months to complete.

Last year, timeshare investors in the resort threatened to take resort owner Driftwood Freeport to court in an effort to get some form of compensation.

The timeshare investors' agreements were with Driftwood. There were reports yesterday that Harcourt issued a statement to local media pointing out that it could not be held liable for debts owed by the resort's previous owners. However, it was not possible to confirm yesterday if the company had issued the statement.

In 2004, the Bahamian government paid over $8 million in salaries, social insurance and compensation to workers who were left unemployed as a result of the resort's closure in the wake of Hurricane Frances.

Locals have welcomed the Harcourt deal, as the Royal Oasis is the region's second-biggest resort and its closure was hitting tourism, one of the area's biggest employers.

Harcourt already owns a condominium development at Suffolk Court in Grand Bahama and a luxury hotel in Carlisle Bay, Antigua. It has a large land bank in west Dublin and is one of three backers of the €39 million Luas light rail extension to Saggart.