PRIVATE Sector Organisation of Jamaica (PSOJ), following a recent partnership agreement with VM Group, is now moving forward to transform its 39 Hope Road headquarters into a new commercial hub with space for rental from which it will earn additional income.

The development, which is to see the build-out of 32,000 square feet of spacing, will spread across four upper levels, with basement and ground floor parking and a lobby area. The rooftop will also comprise an amenity area which tenants can use for various activities.

“We are taking concrete steps towards a project that has been part of the PSOJs strategic plans for years. Our objective is to create a facility that not only meets our operational requirements but also serves as a model of sustainability within the Jamaican business community,” PSOJ President Metry Seaga said in a news release this week.

PSOJ, as one of the island’s most powerful lobby organisations, has for the last four decades served as a voice for the local private sector, made up of registered member partners. The entity currently earns the bulk of its revenues — which is mainly uses to fund advocacy efforts — from membership subscriptions.

At present, subscriptions are paid on an annual basis, based on the size and revenue band of the member category. This, as members can either be registered as individuals, a corporate business, or an association.

Now tracking at over 600 members PSOJ, according to details extracted from its last published annual report for 2022, earned revenues of $141.5 million — almost doubling the $78.1 million earned in the year prior. Of this amount, $108.1 million flowed from subscriptions and contributions, $1.8 million from interest income, and $31.9 million from other income. During that year the entity secured profit of $24.7 million, reversing a loss of $12.7 million in the previous year.

The redevelopment of its current headquarters — which comes as a long-time strategic objective of PSOJ’s sustainability plan — is expected to further diversify the earnings of the large advocacy grouping following its subletting of the space.

“Having this commercial hub will further support our efforts to drive economic activity and growth by providing a state-of-the-art facility that nurtures business development, expansion, and long-term sustainability,” Seaga said.

A projection on the expected returns from this latest revenue-generating initiative PSOJ’s marketing and communications associate Tashna-Toya Edwards said should further help to strengthen the entity’s growing bottom line.

“We don’t have a specific figure just yet in terms of how much revenues we intend to generate from the building but it should be meaningful,” she said in response to queries from the Jamaica Observer.

Edwards further told the Business Observer that the new hub, which is seeking to house a diversified mix of tenants, will be targeting a wide range of businesses spread across several sectors — from finance, medicine, and several other professional services.

Now seeking the requisite approvals from Kingston and St Andrew Municipal Corporation (KSAMC) and other regulatory bodies, construction activities on the the Synergy Design Studio-designed development are expected to commence later this year into early 2025, or as soon as the approvals are granted. During the construction period, operations for the corporate Jamaica lobby body will be moved to another location not yet disclosed.

The joint venture partnership is to attract equity support from the VM Pensions and Wealth Management units.

“The VM Group is an equity partner so they are providing both the co-investment capital and their expertise in terms of the real estate and project management components,” Edwards said.

Still not clear about the exact capital investment, the development is expected to be a multimillion-dollar project, based on current preliminary estimates.

“We are particularly pleased about this joint venture because it most clearly highlights what many already knew — that VM Group is truly capable and indeed passionate about supporting various financial needs of people and businesses to achieve transformation,” CEO of VM Pensions Management Natalie Bennett said in commenting on the partnership.