John Sprovieri, CEO of US-based Auscrete Corporation which is eyeing Jamaica for housing development, said it is targeting mainly middle-income units ranging in price from US$55,000 to US$65,000 starting in the Montego Bay area.

On April 5, Auscrete which is headquartered in Rufus, Oregon, announced it signed an agreement with Jamaican local partner, the Howard Mills-led PN&N Enterprise Ltd, for the construction of 1,500 homes, with a total value of US$135 million, on a number of Jamaican estates which PN&N is expected to acquire over seven years.

Auscrete is a manufacturer of “green” housing using hybrid concrete. The company indicates that its proprietary technology, using injected bubble aggregates in sand and cement, impacts heating and cooling, thereby saving energy.

The builder is bullish on the island despite a recorded contraction in residential housing in 2015, which itself may be connected to demand.

The Jamaica Observer was unable to reach PN&N principal Howard Mills, but Auscrete head John Sprovieri said he expects to begin construction in early 2017.

Sprovieri said: “Our main thrust is the middle-income buyers but we also are looking to construct lower-income housing, particularly in the area of multi-housing units, with typically one to two bedrooms with the occasional three bed units. They will range from US$55,000 to US$65,000 depending on the lot purchase price.”

PN&N is a property developer in Jamaica and the construction agreement is contingent upon acquisition of land.

The intent is to begin in St James near Montego Bay, Sprovieri said. It is expected that a manufacturing arm will also be opened.

Sprovieri noted that Auscrete’s plant “can typically deliver our building products up to 1,000 miles — so the company can build anywhere on Jamaica from one plant” .

For the Jamaican project, he added, Auscrete is now in “organisational mode”.

In relation to Montego Bay, Sprovieri said, “What I can say is that the particular property mentioned is in the north west, a few miles out of Montego Bay. They will be on an estate with green space and attractive presentation. The plan is to pre-build a variety of models and that way we can sell existing homes that the customer can feel.”

Homes will be between 1,100 and 1,500 square feet and typically be detached single and two-storey, although there will be some multi-unit housing, Auscrete indicated.

Howard Mills, president of PN&N Jamaica, was quoted in a company release as saying: “Auscrete’s homes are a perfect fit for Jamaica,” as concrete has been the main construction material here for many years.