By Gemma Q. Casas
Variety News Staff

A FINANCIAL company acquired the cash-strapped government’s debt to one of the principal owners of La Fiesta Mall as early as last month, Variety learned.
Bridge Capital LLC signed a deal, for an undisclosed amount, with the government regarding the lease on the land where the mall was built.
The government will now pay Bridge Capital the amount it owes Cocos Lagoon Development, the original mall owner, which is the balance of the $7.5 million price of the mall acquired by the Babauta administration in 2004 for Northern Marianas College’s Pacific Gateway Project.
Cocos and Nikko Saipan Inc. used to have a joint interest in the property. Both are affiliated with Japan Airlines.
“Bridge Capital took ownership of the interest on the property (La Fiesta) from Cocos,” said Press Secretary Charles P. Reyes Jr.
He said the government remains the real owner of the property because only the debt was acquired.
Gov. Benigno R. Fitial said there are ongoing negotiations to “fully sell” the mall.
Bridge Capital is one of those interested in buying it.
“We’re still negotiating to sell,” he said.
Originally from the U.S. Virgin Islands, Bridge Capital relocated to Saipan to take advantage of the islands’ proximity to key Asian countries.
Bridge Capital is capable of making commercial loans between $1 million and $100 million for large ventures.
It specializes in real estate acquisition, development, financing and corporate lending.
Reyes said the administration wants to dispose of the mall which it considers a liability.
“The main concern here is to get rid of this liability. This is an expensive asset to maintain,” said Reyes. “We want to get this off our hands.”
“(La Fiesta) is a mistake that we inherited from the previous administration.”
The Babauta administration purchased the mall in hopes of establishing an international education industry.
The mall was originally intended to be an extended NMC campus on Saipan but the project did not materialize due to lack of funding.
The assignment of leases and assignment of agreement on the purchase of the buildings and the license to the real property between NMC and Nikko/Cocos were signed on Aug. 18, 2003.
The central government subsequently acquired the mall from NMC to protect its accreditation with the California-based Western Association of Schools and Colleges, which raised concerns about the mall’s huge maintenance expenses.