Central government has found another way to shore up limping revenues under pandemic conditions, reviving sales of real estate owned by the Factories Corporation of Jamaica (FCJ).

The FCJ, which in 2015 outlined a slate of 58 properties to be sold, including both developed and undeveloped properties, has since sold 10 of them, funnelling the funds brought in to central government coffers.

It is right now fielding another 27 for sale across the island. It was noted that the properties with existing buildings can be used for factory or warehousing purposes and the undeveloped lands can be developed for similar purposes.

In an update provided to the Jamaica Observer, the agency indicated, “To date, 10 properties have been sold with a total sale value of $141.1 million. Five sales are pending completion with a total sale value of $159.6 million.”

In total the central government could realise $300 million from property sale in the near term.

“The proceeds of sale have not been reinvested by FCJ, as the proceeds are to be remitted to the GOJ (Government of Jamaica),” the Business Observer was told in the FCJ’s update.

Previously the proceeds had been considered for reinvestment under the government agency’s expansion plans. State-owned, the FCJ is the largest holder of manufacturing space.

Factories Corporation owns and manages 1.7 million square feet of space. In 2018 it was planning to construct an additional 1.5 million square feet of space to satisfy demand in agro-processing, manufacturing, business outsourcing, distribution and warehousing.

The assets being sold were either underperforming properties or undeveloped assets such as land which did not fit the agency’s strategic direction.

The plan was to invest instead in “integrated business complexes”. No new properties have been acquired by FCJ since 2015.

The company instead indicates that it is ramping up sales and that there are 27 properties that are immediately available for sale, comprising five small industries’ complexes, five stand-alone facilities and 17 undeveloped lands.

Projected earnings were not shared. The agency told the Business Observer, “The asking prices for properties are not pre-set by FCJ; the final selling prices are determined by valuations submitted by prospective purchasers and valuations obtained by FCJ.”

The FCJ on its website indicates that all its annual reports since fiscal 2018-2019 to fiscal 2020 to 2021 have been submitted for approval, but are currently unavailable.

At last report, for fiscal year 2017/18, it earned rental income of $732.56 million, which was $26.66 million or 3.8 per cent more than the previous year’s $705.95 million. Occupancy levels for FCJ factory space was then running at 93 per cent.