PORTLAND Co-operative Credit Union will form a new subsidiary to unlock value from 38 acres of land it owns in Norwich Heights, potentially creating one of the largest member-focused residential subdivisions in the parish while generating a new income stream for the member-owned financial institution.

The credit union won unanimous approval from the 280 members present at Thursday’s annual general meeting to amend its rules to allow the creation of the wholly owned subsidiary that would oversee the development and sale of at least 140 residential lots on the Norwich Heights lands.

General Manager Martin Blackwood said the proposed subsidiary would be established solely to carry out the project and would eventually be wound up once the development is completed.

“The subsidiary has not yet been formed. It’s a rule to be amended to facilitate the formation of the subsidiary, the real estate company,” Blackwood told the Jamaica Observer ahead of the annual general meeting.

Blackwood described Norwich Heights as one of Portland’s prime real estate locations. Known for its scenic ocean and mountain views, the community has also benefitted from major infrastructure upgrades aimed at improving local roads and water management. While homes will not be constructed as part of the project, the subdivision is expected to feature modern infrastructure, including underground utilities designed to improve resilience during severe weather events.

Portland Co-operative Credit Union has secured member approval to form a subsidiary that will oversee a planned 140-lot subdivision in Norwich Heights, Portland. The real estate venture is aimed at generating additional income and boosting returns for members.

“One of the things that we are looking forward to in a subdivision is to have probably one of the most modern, hurricane-resistant developments, because the proposal is that no wires will be run within it,” he said.

“All wires, cables and water mains will be underground.”

New income, stronger returns

The project represents an unusual move for a Jamaican credit union, whose earnings are typically generated through loans, investments and other financial services. Blackwood said the objective is to create an additional source of revenue that can ultimately be returned to members through stronger earnings and dividends.

“Any kind of funds that we get from that project will go into the credit union to increase the return to the members’ savings,” he said.

The credit union is already proposing a dividend payout of 5.25 per cent on members’ voluntary and permanent shares this year, which Blackwood said compares favourably with returns available elsewhere in the financial system.

“It is higher than the rate offered by almost any other institution in Jamaica,” he told the Sunday Finance.

The institution’s 2025 annual report shows members earned an average return of 3.97 per cent on general savings last year, up from 3.4 per cent in 2024, while dividend payouts on shares reached 5 per cent — which Blackwood said is among the stronger returns available in the local financial sector.

The proposed development comes against the backdrop of continued growth in the credit union’s core business.

Portland Co-operative Credit Union ended 2025 with total assets of $12.14 billion, up $1.38 billion year-on-year, while total savings climbed to $9.24 billion and net loans reached $7.06 billion. Membership also grew by 1,425 during the year.

Over the last five years, the institution has expanded rapidly, with assets rising 66 per cent, savings growing 60.7 per cent and net loans increasing 62 per cent, underscoring the scale of growth achieved by the parish-based financial institution.

According to Blackwood, member savings increased by more than $1 billion last year and have grown by an average of roughly $950 million annually over the past five years. The loan portfolio expanded by more than $800 million in 2025 and has recorded annual growth for several consecutive years.

He said the institution has never had to seek outside funding to meet demand for loans, relying instead on its growing deposit base.

“At no time has the credit union ever had to go outside to get funds to lend to the members. We have always had adequate funds,” he said.

Blackwood attributed the performance to prudent management, controlled operating costs and a strong focus on member service.

“We basically manage the members’ money in their interest. We do not spend unnecessarily. We are not extravagant…The strength of our market lies in the delivery of service and the members tell the others,” he added.

While loan delinquency has risen in recent years, reaching about 7.5 per cent, Blackwood said the figure remains manageable and reflects wider economic pressures, including the effects of Hurricane Melissa.

The credit union has also been drawing increasing interest from Portlanders living overseas, a trend Blackwood believes could become even more significant as development activity accelerates across the parish.

According to Blackwood and the credit union’s annual report, more than 500 overseas-based Portlanders have joined the institution over the past five years, or roughly 110 annually. Those members are not merely maintaining savings accounts, he said, but are actively borrowing and conducting business through the institution.

“We have been penetrating what you call the diaspora market every minute really,” Blackwood said.

The growing interest comes as Portland continues to attract attention from investors, returning residents and members of the diaspora drawn by the parish’s natural beauty and development potential. Major infrastructure projects, including improvements to the road network, are expected to further strengthen connections between Portland and the rest of the island.

Beyond its financial services business, the credit union remains deeply embedded in the social life of the parish, providing sponsorship for school athletics, football and netball competitions, scholarships, educational support and assistance to vulnerable families.

Blackwood said members would receive first preference when lots become available for sale in the Norwich Heights development, although the subsidiary’s board will determine the final marketing strategy once it is established.

Because the project is being undertaken through a company owned by the credit union, he expects the development to remain largely focused on members.

“I can tell you that pr.eference will be given to members,” he said.

With member approval now secured, the subsidiary still requires regulatory ratification before it can be formally established.