SUPREME Ventures Limited (SVL) is urging the Government to privatise Caymanas Park horse racing track, vowing to exit its lease if its subsidiary operating the facility, Supreme Ventures Racing and Entertainment Limited (SVREL), repeats last year’s $400-million loss.

SVREL leases Caymanas Park from the Jamaican Government under a 30-year agreement which can be extended by an additional 30 years. The lease includes land, facilities, and racing infrastructure. SVREL was required to invest $500 million over five years to modernise and develop Caymanas Park and pays US$305,000 every March under the lease agreement.

Executive Chairman Gary Peart, speaking earlier this week at SVL’s annual general meeting in Kingston, told stakeholders the company has already invested more than $3 billion since obtaining a lease on the property in 2017, but cannot secure financing for major upgrades without a title to the property, as ongoing losses and limited race days hamper profitability.

“SVREL is a very interesting creature… last year, they lost almost $400 million. I made the point that if they lose that again, we’re going to give back the track,” Peart told the company’s shareholders.

Peart said he would rather pay that $400 million as dividends rather than using it to cover losses at the race track and outlined plans to invest and redevelop the property if the Government accedes to requests to sell the property outright to its current operators.

“SVL has identified US$100 million to be spent over 10 years if we can convince the Government to allow us a chance to modernise and develop Caymanas track,” Peart added. “So any MP (member of parliament) you see out there, please ask them, give SVL a chance to make Caymanas the pearl of the Caribbean.”

Among the plans is to install lights, turning the race track into “a 24-hour facility that is consistently generating revenue every hour of the day”, and the introduction of non-racing events to help diversify its income from depending on roughly 80 race days each year.

“So for example, when we put lights into SVREL, it becomes a 24-hour place. I mean, I could arguably move Coronation Market to Caymanas and it’s easier for the residents of Portmore. We can build a covered entertainment space….If you put in place a covered entertainment space, you can reduce production costs 40 per cent, et cetera. There are so many things [we could do]. We have 50 acres on the infield of Caymanas, but again, we’re currently under lease. We can’t get financing on leases.”

But he said owning the facility outright could see the entity demolishing the stands to build “a nice 12-storey building with penthouses on the top”.

Peart, while making the plea for the divesment of Caymanas Park to SVL, positioned it as a means of saving the park, as similar facilities in other countries are being closed down, telling shareholders that “horse racing is a dying sport in the world”.“Caymanas is one of the few tracks in the world where investments is taking place,” he said.

In the United States, the Stronach Group, which has various assets in the horse racing industry has been divested one of its tracks in Maryland to the state government which is now upgrading it with a US$400-million spend. It’s other track in the state will be closed when that upgrading is complete and the area used to build condos.

The Stronach Group has also closed one of its two race tracks in California and is building condos in its stead while it has also given notice that it will close its race track in Florida next year, also to build condos.

“There are several race tracks in the United States that are being shut. So if there’s no real divestment of Caymanas Park, it’s a dying business.”

He said SVL could decide to cut its losses on Caymanas Park and “we just milk the lottery” which has proven to be profitable for the group with growth at 5 to 10 per cent “and collect the dividends and you are good.

“But if you truly want to build a business, we have to diversify in these different places. It’s gonna cost you some capital, but you’re going to get it right and then we move. And if we get it right, the company will be growing at 40 per cent per annum for a very long time”.

The plans also include making reviving interest in making it into a tourist destination. SVREL previously signed a memorandum of understanding with Chukka Caribbean Adventure Limited to offer tours at the property. SVL and SVREL also signed a five year agreement with BetMakers Technology Group Limited in December 2020 to distribute and export Caymanas Park’s racing content internationally.

“We believe in the industry, especially one that contributes heavily to the community and the Jamaican economy in general, and still see Caymanas Park as a fit in our gaming portfolio. Both the park and SVL will be better served if the park is fully divested to Supreme Ventures so we can take it on a modernisation and a stronger profitability path. Nevertheless, the team continues to develop a product.”

PEART…. both the park and SVL will be better served if the park is fully divested to Supreme Ventures so we can take it on a modernisation and a stronger profitability path (Photo: Joseph Wellington)