Kingston Live Entertainment (KLE) group said this week that groundbreaking is imminent for Bessa, a resort project which has been in gestation since 2013.

Described as a lifestyle-themed boutique villa community, the project is a joint venture with Sagicor Life Jamaica.

It is slated for an eight-acre ocean and river-front property in St Mary, and planned to feature 45 units, inclusive of bedroom swim-up suites, condos and four-bedroom villas.

On Monday in the second quarter report filtered through the Jamaica Stock Exchange, KLE directors said the project has “progressed beyond major preliminary milestones”.

“With all the phase one tenders in, the contract award and groundbreaking will now commence.”

Queries directed at company CEO Gary Matalon and Chief Executive Officer of Sagicor Investments Jamaica Rohan Miller as to a specific time frame for construction were not successful. Miller said all aspects of the project were being managed by KLE. Matalon did not respond to messages.

Directors, via the JSE, noted that “although no financial benefit will accrue in the short to medium term until the project is completed, the expectations are that this will be one of the flagship projects of the company on completion”.

KLE’s role is one of managing the existing partnership.

The group entered into a partnership agreement with Sagicor Life for the purpose of carrying out the project. Originally, KLE was expected to invest the sum of US$350,007 in cash.

However, in 2013 the Board of Directors of KLE decided to reduce its direct funding to a maximum of US$100,007.

They therefore “invited a small group of investors to assume the risk and reward of participating in the Bessa Partnership to the extent of US$250,000”, as outlined in the KLE annual report.

“The participants entered into a participation agreement with KLE, whereby KLE would receive the investment funds paid in by the participants, pay it into the Bessa partnership, and manage the process of accounting to the participants for any returns earned on those funds,” the report adds.

It also notes that “KLE does not assume the risk of this investment, and it is expressly acknowledged by the participants that they undertake this investment at their own risk”.

KLE’s liability to the participants only arises in respect of any failure by it to properly account to the participants in respect of funds received, it was noted.

In its financials, the entertainment company disclosed that it expects an annual administration fee equal to one per cent of each participant’s invested amount, as well as a bonus payment equal to 15 per cent of the profit earned by each participant on their investment “where the profit exceeds a specified hurdle rate (that is, the 12-month United States dollar LIBOR obtaining as at the date in respect of which the final audited financial statements of the Partnership have been prepared, plus four per cent).”