Sygnus Real Estate Finance is getting closer to cashing in on its flagship One Belmont office tower, with executives now giving shareholders a clearer sense of how the long-promised exit could actually work and when it could start translating into dividends.

Speaking at the company’s annual general meeting on Wednesday, Executive Vice-President and Chief Investment Officer Jason Morris said the plan to partially exit the building is well advanced, with the structure now taking firmer shape after more than a year of signalling.

“The next task is to partially exit the investment, which means sell interest in it to get back cash that we can then use to pay dividends and redeploy. And we are far advanced with that,” Morris said.

What shareholders got this time was a clearer explanation of what that exit might actually look like. Rather than selling off physical space, Sygnus is looking at breaking up the economic value of the building, allowing investors to buy into the income stream itself.

“We are structuring the ability for our investors to own portions of the building… you purchase 10 per cent of One Belmont, and, therefore, 10 per cent of all the revenues, net of cost, belongs to you,” Morris said during the question and answer segment.

In simple terms, the company could sell down a portion of the asset — say half — bring in new investors, and still keep a stake on its own books. Those investors would earn from lease income, while Sygnus continues to benefit from what it holds.

It’s a structure that, if executed, could change how local investors access commercial real estate and, more importantly for SRF, how it turns completed projects into cash. While SRF paid its first dividend last year, management made it clear that stronger payouts will depend on when cash starts coming back in from exits.

“Once we are pretty much in the throes of exiting One Belmont, we should generate substantial amount of cash that we can utilise to pay dividends,” Morris said.

One Belmont, now occupied by tenants, including the World Bank’s Caribbean office and Sygnus Capital itself, has moved from development into income generation, making it the most mature asset in SRF’s portfolio.

Over the past six years, the company has deployed $18.09 billion into real estate investments and pulled back $6.87 billion through exits, while delivering an average return on equity of 17.5 per cent.

But those gains have not always been smooth. Much of the upside comes in bursts when assets are sold or revalued, leaving quieter periods in between. That is what the company is now trying to balance.

“So from the first strategy that I spoke about in terms of capital appreciation, that will normally be lumpy. In some years, you will exit something. Or in some years, you might develop something and then get a value from it,” Morris told shareholders.

SRF is entering what management calls its second investment cycle, one that leans more heavily on recurring income while still pursuing long-term value gains.

“The second investment life cycle that we are now in is heavily focused on generating income…while also executing on key strategic assets,” Morris said.

Those assets are now taking centre stage. At Lakespen in St Catherine, construction is already under way on what Sygnus is positioning as a more structured industrial development.

The 55-acre property is being divided into 34 lots, with the company putting in the core infrastructure up front. That includes roads, drainage, utilities, security and water systems, allowing buyers to step in and build according to their own business needs.

“What we are delivering is a serviced lot…with roads, sidewalks, concrete wall, security, underground utilities, sewage, water, stormwater drainage,” Morris said, pointing out that the space is being designed to accommodate a range of uses, from cold storage to light manufacturing and distribution.

The aim is to create a more controlled and reliable environment for businesses, particularly in a space where infrastructure gaps have often slowed expansion.

Mammee Bay, on the other hand, is a different type of project.

The 14-acre property in St Ann is being positioned for hospitality and residential use, though management has not yet shared detailed plans.

At the same time, the company is expanding its financing business, putting capital into third-party real estate projects across Jamaica, and soon the wider Caribbean, as it builds out another stream of income.

The One Belmont office tower in New Kingston, Sygnus Real Estate Finance’s flagship commercial development, which the company plans to partially exit as part of its next investment phase.