Hardware retailer Lumber Depot Limited is expanding its footprint in Papine, St Andrew, after entering into an agreement to purchase an adjoining property at 17 Gordon Town Road.

The near half-acre property, located next to the company’s flagship Papine Hardware store, represents a major step in Lumber Depot’s long-term strategy to increase storage, warehousing, and contractor pickup capacity amid growing demand. The acquisition includes both land and buildings suitable for commercial use.

In a telephone interview with the Jamaica Observer at the start of this week, Managing Director Major (Ret’d) Noel Dawes confirmed cost at little over $200 million for the property. A value of $205 million was disclosed in previous financial filings. The property acquisition is expected to be completed by the end of October 2025 pending regulatory approvals and will be financed with a combination of internal resources and bank loans.

“The acquisition is not completely finalised, but we expect to make that a reality soon. This, of course, now depends on what happens this week following the passage of Hurricane Melissa,” Dawes said to the Business Observer. “From a board perspective, we’ll also be looking closely at how to proceed with the property in terms of its usage.”

Dawes noted that while the site offers great potential, the existing layout is not immediately conducive to hardware operations. As such, additional work will be undertaken in the coming weeks to modify the property to suit the company’s needs, subject to board approval and the necessary permits from relevant state agencies that deal with building construction.

“It is, therefore, a work in process and we expect it to take some time,” he stated.

In a notice posted to the Jamaica Stock Exchange (JSE), Lumber Depot’s directors described the Papine location as a cornerstone of the company’s long-term growth strategy.

“Lumber Depot considers the location in Papine to be an important part of its long-term success. Papine is a vibrant and fast-growing university community that also serves as a main access point to the St Andrew hills. The Lumber Depot facility is within the most trafficked part of the community, is purpose-built, and well established,” the directors noted.

Lumber Depot, which acquired its current Papine property in December 2021 for $165 million, has operated in the community for more than two decades. The company runs a full-service hardware store catering to large and small-scale contractors as well as homeowners engaged in construction, renovation, and repair projects.

The junior market-listed company also holds a 30 per cent stake in Atlantic Hardware and Plumbing Company Limited, acquired in May 2024.

For the 2025 financial year, Lumber Depot’s revenue edged down slightly, moving from $1.52 billion to $1.51 billion as profit declined to $135.9 million. For the first quarter ended July 31, 2025, sales, however, rose nearly 4 per cent to total $401 million, even as profit dipped to $37.9 million.

Despite economic challenges and the looming effects of Hurricane Melissa, Dawes said the company remains cautiously optimistic about its growth prospects.

“We anticipate some slowdown in the construction sector after the hurricane, but we’re hopeful that Jamaica will once again demonstrate resilience. We’re praying that the impact of this unprecedented Category 5 system will be minimal and that both the country and the business community can get back on track as quickly as possible,” he said.

DAWES…The acquisition is not completely finalised, but we expect to make that a reality soon. This, of course, now depends on what happens this week following the passage of Hurricane Melissa