Norbrook invests $11 billion in real estate projects
Norbrook Equity Partners Limited will be making its big splash into the luxury residential and commercial real estate space through its subsidiary Norbrook Land Realty Limited, which already has US$75 million ($11.44 billion) in three projects lined up.
These real estate projects are expected to create 250,000 square feet of luxury real estate which will be spread between Mammee Bay and Old Hope Road. The company will break ground for one of the projects in the coming weeks while the other two are in the development stage.
“For years, we observed the real estate industry and, like any of our other business lines, we spent time and effort to understand the market and identify gaps. Today, we are excited to unveil three projects that we are very proud of and that will form the backbone of our formal entry into real estate development,” Executive Chairman Khary Robinson said in the press release.
Its first project in the Mammee Bay area, called Bohio Villas, has already been sold out pre-construction. The property is a luxury beach enclave with 14 villas and varying amenities. The villas were sold with furniture and are to be fully managed by Norbrook Hospitality Limited, which will allow for owners to outsource management of the villas while earning income from them.
Norbrook Hospitality is a St Lucian international business company (IBC) like its parent, Norbrook Equity.
“We strategically accumulated key parcels of land, formed partnerships with proven industry experts, and developed a unique product set for a niche audience. Given our conservative nature, we then presold units to further reduce our risk,” Robinson explained.
Its second residential development will be called ‘Banbou Cove Resort Residences’, which will have 20 high-end villas and 36 luxury condos on 20 acres of beachfront land. This project has reserved buyers with the official launch for sale to take place in the coming weeks. Similar to the Bohio Villas development, it will be sold as a turnkey solution and managed by Norbrook Hospitality.
For both projects, Norbrook Land Realty Limited has partnered with GW Architects, Relmac Construction, and Neustone as project managers while its financing partner is Jamaica Money Market Brokers Limited (JMMB).
Its third project will be on a recently acquired property at 109 Old Hope Road, which will see the development of a commercial tower for different Norbrook businesses such as Mailpac, Express Fitness, Hertz and other general businesses. The property is expected to have retail on the ground floor, corporate offices, short-term rental luxury condos, and even rooftop restaurants — all to be designed by architects Atelier Vidal.
“In our view, 109 OHR will be the premier commercial development in Kingston given its location, scope and variety of offerings. With the amazing team of partners and consultants we have pulled together, and the clear mismatch in supply and demand in the luxury real estate space, we are excited to position ourselves as a leading provider in that market and are eager to see what the future holds for us in that arena. Coupled with an unparalleled view of Kingston to the sea, the development is sure to be one-of-a-kind,” said Robinson.
When asked about 109 OHR’s development, Robinson responded, “We’re going through the approval process now and that’s more involved because of where it is located.
Norbrook is currently soliciting interest for its 109 OHR project in the interim.
Norbrook Equity Partners recently exited its joint venture investment in 693STR Limited in December which houses a three-acre (75,000-square-foot) industrial property with warehouse and office space. The 693STR received BDS$2.03 million (US$1.01 million) in share capital injections from its joint venture partners, which included Eppley Caribbean Property Fund Limited SCC – Value Fund (CPFV). The 693STR is a St Lucian IBC.
CPFV purchased the remaining 50 per cent stake in December, giving it full ownership of 693STR.
During a recent appearance on Taking Stock with Kalilah Reynolds, Robinson mentioned that Norbrook Equity has signed agreements with brokers to take at least one of its subsidiaries public on the Jamaica Stock Exchange (JSE) in 2023. A second initial public offering could also happen depending on the market conditions.
Norbrook listed Mailpac Group Limited in December 2019 after raising $245 million from the sale of 250 million shares. Sagicor Investments Jamaica Limited had acquired 10 per cent of Express Fitness Limited for an estimated $230 million. Express was supposed to list on the JSE shortly after Mailpac, but had to shelve its plans because of the COVID-19 pandemic.
Other Norbrook companies include Dryva, Pure National Ice, Precision Logistics, SNB Creative Group, Norbrook Water Company (JamAgua) and Norbrook Transaction Services Limited.