Last week Sol Kerzner was in South Africa for the launch of the School of Tourism & Hospitality at Johannesburg University, a project to which Kerzner International has contributed R20 million (US$3.13 million) and which he sees as an opportunity for the company and the family to give something back to the country for its future. Yesterday Kerzner International Limited and its wholly owned subsidiary Kerzner International North America, Inc (KINA) announced they were commencing a cash tender offer to purchase their outstanding 8.875% Senior Subordinated Notes due 2011. Whilst Sol Kerzner, who turned 70 last month, has ceded management of Kerzner International to son Butch, he is still very much involved with company projects.

In South Africa Kerzner is hoping to develop one of its luxury One & Only hotels on the V&A waterfront in Cape Town. The project has been delayed by litigation over zoning agreements between the Cape Town city council and the V&A. The matter is at present before the Supreme Court and it is hoped that judgement will be made soon. Another project that has been delayed is the development of the Millennium Dome site in London, put on hold by the limitations of the UK Gambling Act 2005. Kerzner holds one UK gaming licence for a small casino in Northampton.

Plans that are going according to schedule are the nearly US$1 billion Phase III expansion of the Atlantis casino resort on Paradise Island in The Bahamas, the joint venture with the Dubai government for Atlantis, The Palm, and the US$300 million casino resort in Morocco. A former project, the Mohegan Sun in Connecticut, was handed over to the Mohegan tribe five years ago but Kerzner retains a financial interest and revenues from arguably the most profitable gaming operation in North America.

The company may already have projects in the pipeline for some US$3.5 billion but that won’t stop Sol Kerzner keeping his eye out for further opportunities. It is, after all, what he has done so successfully all his life. (E-09.13.05)

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