The halted Ocean’s Edge Country Club project in Discovery Bay, St Ann, is now on the market under receivership, marking a significant attempt to recover financial losses for Sygnus Real Estate Finance (SRF), which holds the only creditor claim on the stalled development.

Initially marketed for its luxury townhouses and high-end amenities, the project attracted significant interest from buyers seeking an ocean-view lifestyle, but a series of setbacks left it incomplete. Now, 16 units are up for bid, with prospective buyers required to submit sealed offers by October 28, 2024.

Receiver Ken Tomlinson, who is tasked with maximising value for Sygnus, shared that interest has already exceeded expectations. “We have been getting interest way beyond what I expected…and quite a number of them is the who’s who in Jamaica,” Tomlinson told the
Jamaica Observer in a brief interview on Monday.

Yet, despite the strong initial interest, Sygnus remains cautious about its recovery prospects. Jason Morris, Sygnus’ chief investment officer, emphasised that the final returns will depend heavily on the market response.

“Any gains are speculative at this point. The market response will dictate how much of our investment we can recover,” Morris told the
Business Observer, noting the influence of interest rates on asset values. “We’re hopeful that a lower interest rate environment might positively affect real estate values, but it’s still early days.”

Up to press time, the
Jamaica Observer could not confirm Sygnus’ total investment in the development.

Ocean’s Edge was initially launched by Genesis Construction, with development financing from Sygnus Real Estate Finance. Billed as a panoramic ocean-view development featuring high-end amenities, including a clubhouse, pool, and 24-hour security, the project was designed to offer a premium lifestyle at prices ranging from US$495,000 to $695,000.

Interest was high, with buyers placing deposits of $50,000 to $100,000, banking on an estimated completion by 2021. However, construction hit substantial roadblocks, including the contractor’s unexpected demobilisation in 2022 due to alleged payment disputes.

Morris explained that Sygnus, though the primary financier, maintained a creditor role rather than an equity partner in the project, allowing it to oversee funds held in escrow for early buyers. “Escrow funds are an industry safeguard to protect buyers,” Morris stated. “Sygnus has been able to manage refunds for depositors who requested them, as these funds were maintained securely.”

Concerns over the project’s prolonged delays reached the Real Estate Board of Jamaica earlier this year. Complaints from depositors about missed deadlines led the board to begin monitoring the situation.

A formal declaration under Jamaica’s Real Estate (Dealers and Developers) Act was considered, but instead, the board engaged with attorneys representing Genesis Construction and Sygnus to assess the project’s future. The parties reviewed potential remedies, but no immediate solutions surfaced, paving the way for the current receivership.

Receiver Ken Tomlinson stepped in to oversee the asset’s recovery process roughly two months ago, beginning a rigorous process of preparing the property for sale and handling regulatory requirements.

“The project had to undergo extensive documentation and approvals to reach the market, but we’re now receiving bids and are optimistic about recouping value,” Tomlinson said.