Beaming with success from its Ocean Edge Country Club residential resort development in Discovery Bay, St Ann, Sygnus Real Estate Finance Limited is looking at another real estate development in the parish. Our investigations revealed that this new development will be located in Mammee Bay, St Ann, from where the land was bought from Lyttleton “Tanny” Shirley, Chairman of the Factories Corporation of Jamaica.  While Sygnus Group President and CEO, Berisford Grey did not indicate where the company will be doing its next real estate development or the type of development to be undertaken, he told the Jamaica Observer in a recent interview, that the land was already purchased and the project is now in the conceptual phase.  Grey however admitted that Sygnus Real Estate Finance, which is the real estate financing arm of Sygnus Finance Group, is exploring various options for the most optimal way to unlock the maximum value for the Mammee Bay property. A Miami, Florida based consulting firm is now conducting feasibility studies to help determine the best use of the land.  Sygnus Real Estate Finance is considering another development in St Ann in the aftermath of the success of Ocean Edge, which comprises 16 four-bedroom, 2-storey townhouses, which have all been sold out. The Ocean Edge units had a starting price of US$485,000 (approximately J$73 million). Quizzed about the capital outlay for the impending project, Grey indicated that it was too early to tell considering that Sygnus Real Estate Finance, which is a specialty real estate investment company within the Sygnus Group, has just gone into the conceptual phase.  The Sygnus Group President and CEO remarked that the real estate asset class is doing very well in Jamaica, which informs why his company is making these investments in that segment of the market. Residential resort developments attracting investors “Residential resort developments like Ocean Edge are attracting buyers not just from Jamaica but also overseas so we see the resort development asset class as having good potential upside,” Grey lamented. In conclusion, he made the point that Jamaica’s real estate market is coming back and Sygnus intends to take advantage of this fact. Informed sources tell the Caribbean Business Report (CBR), that proceeds from Sygnus Real Estate Finance Initial Public Offer (IPO), which opens today July 23, 2021 and closes on August 20, 2021, will go towards funding this development as well as the recently disclosed multi-billion dollar Logistics Park in the corporate area. The IPO is seeking to raise upwards of four billion dollars. To raise that money, Sygnus is offering up to 207.6 million ordinary shares in the company for a target capital raise of J$3.9 billion. Based on success, the company has indicated it could upsize the offer by a further 38,857,193 ordinary shares, which would raise an additional $600 million. 

Details of the IPO The shares on offer are divided in two classes (J$ Shares and US$ Shares). The subscription price is J$19.30 per J$ Share and US$0.1270 per US$ Share for the general public. However, a discounted price of J$17.90 per J$ Share and US$0.1170 per US$ Share is applicable for existing shareholders and team members and J$18.30 per J$ Share and US$0.1210 per US$ Share for key investors. The lead arranger is Sygnus Capital Limited while the joint lead brokers are Sagicor Investments Jamaica and Scotia Investments Jamaica. Over the past 19 months the company has had a string of successes such as its deployment of an estimated J$5.65 billion across a total of 12 investments since inception in Jamaica, which was its initial focus of investment capital. This is more than 2.5 times the company’s initial share capital of J$2.0 billion.  In his statement appending in the prospectus, Board Chairman, Clement Iton argues that, “this highlights the creative use of its capital base to acquire key strategic assets and extend flexible financing to real estate projects at a time when all economies need private sector capital to be put to work.” 

Unlocking real estate value across the Caribbean Speaking at yesterday’s media launch of the IPO, Sygnus Group co-founder and Vice President, Jason Morris explained that Sygnus Real Estate Finance is seeking to unlock real estate value across the Caribbean beginning in Jamaica, where there are vast amounts of idle lands. He commenting that the value of these idle lands have not been tapped because of “the absence of creativity, financing structure and partnerships for unlocking the value so we designed from Sygnus Real Estate Finance to do just that.” He declared that Sygnus Real Estate Finance will be the pioneer for unlocking real estate value across the Caribbean.