The National Environmental and Planning Agency (NEPA) has approved two applications for Sygnus Real Estate Finance Limited’s (SRF) Mammee Bay project in St Ann.

The approvals were given to Sepheus Holdings Limited, its wholly owned subsidiary, at NEPA’s NRCA, TCPA authorities meeting March 21 meeting. The first application was for an environmental permit for a hotel/resort development with the second application outlining planning permission under stipulated conditions for the development. The first application also received a special mining licence (SML).

The NEPA Public Portal lists the first application for a complex of 10 to 50 rooms while the second application lists a hotel with 250 rooms and nine bungalows with 21 villas.

SRF acquired the 29.4-acre property for $3.55 billion before selling 15 acres in January 2021 for $1.91 billion. The remaining 14.4 acres represents a beachfront investment property that is currently being carried at a $4.88-billion valuation as of August 2022.

“We’re continuing working with our international consortium to see the optimum way that we’ll create the value for this particular property. In due course, we’ll come back to you to let you know what the final decision is with respect to particular investment,” said Sygnus vice-president and head of real estate & project finance David Cummings at SRF’s January earnings call.

The presentation outlined that documents were submitted to various agencies and that responses were pending. The detailed design phase was recently completed with an international consortium of partners and experts in the hospitality field.

SRF had signed luxury hospitality operator Wischermann Partners, Inc and design and architecture firm Leo A Daly in June 2022. This came at the same time it had been accepted as a member of The Leading Hotels of the World (LHW), which is a leader in independent, luxury hospitality. LHW is a group of 400 hotels in 80 countries.

SRF’s prospectus had originally outlined US$6-10 million in the first phase as the investment required over the next 24 months depending on the value creation path selected. It had stated hospitality under residential villas, hotel, spa, restaurants and condos and apartments for sector and industry. SRF has also began discussions and financing options with international investors and financiers for Sepheus which holds the Mammee Bay property.

SRF mentioned in the same earnings call that it was considering the possibility of paying a dividend this year as it begins the exit of several major projects. This included a $1-billion exit from its real estate investment notes (REINS) and the completion of the Spanish Penwood and One Belmont projects during the financial year. SRF listed on the Jamaica Stock Exchange in October 2021 at $19.30/US$0.127 where it raised $2.31 billion in gross proceeds.

SRF had a first quarter net loss of $172.50 million as it experienced fair value losses, foreign exchange losses and increased interest expenses. SRF’s asset base stood at $14.54 billion with $9.94 billion in investment properties and $2.63 billion in investments. Shareholders equity closed the period at $7.42 billion which translates to a book value of $22.71. This is below the current market prices of J$9.95 and US$0.07 on Monday.

SRF’s first annual general meeting will be held on May 3 at 10 am Jamaican time at satellite location by the Montego Bay Suite at the Jamaica Pegasus hotel.