PROVEN Group Limited is moving away from financing and building its own real estate developments, with plans to recover approximately US$63 million from projects nearing completion before shifting towards a partnership-driven model that requires less capital.

The change comes as the regional investment company seeks to improve cash flow and shareholder returns after years of tying up substantial funds in property developments, some of which have taken longer than anticipated to complete and sell.

Speaking at the company’s annual general meeting on Thursday, Group CEO Johann Heaven said the immediate priority is to complete existing developments, hand over units and collect outstanding proceeds, while avoiding fresh capital commitments to construction projects.

“Our focus is not simply on accounting profit. We now need to complete, hand over, sell and collect on the developments that we have on the ground. So the value of these projects must increasingly be converted into cash, which can be recycled into higher opportunities or used to strengthen the group’s balance sheet and, more importantly, pay dividends to our shareholders,” he said in response to questions during the meeting.

The strategy marks a significant change for Proven’s property division, which has invested heavily in residential and commercial developments across Jamaica. Rather than committing its own capital to future projects, the company intends to use its development expertise to provide advisory and project management services, earning fees while leaving much of the financing and ownership risks with partners. The appointment of experienced project manager Adam Hill to lead Proven Properties, effective November 1, is expected to support that transition.

Heaven said the decision reflects a broader effort to improve the group’s financial performance, reduce funding costs and generate more predictable returns from its investments.

“We will not be allocating any new capital to projects going forward, but we will be leveraging the expertise that we have and that were built up in the team to be able to partner with landowners and developers going forward, to be able to assist them in the development of their property,” he said.

“It’s going to be a different model. It’s going to be more of a consultative model and a fee-generating model going forward,” he added.

Proven is also looking to its recently established strategic partnership with the Cornerstone Group for opportunities to expand the property business under the revised model. Cornerstone, through its subsidiary Barita Investments, now holds the second-largest shareholding in Proven.

The changes also addresses concerns raised by shareholders at the meeting, who questioned whether Proven should continue directly financing and developing properties in an environment where elevated interest rates and market volatility have made construction projects increasingly difficult to monetise.

Currently, Proven’s attention remains on three developments expected to generate approximately US$63 million in sales proceeds over the next two financial years: Sol Harbour in Ocho Rios, Bahari in Runaway Bay and Kingston Gateway along Marcus Garvey Drive in Kingston.

The developments are at varying stages of completion.

At Sol Harbour, a 152-unit residential development in Ocho Rios, construction has been completed, with 142 units sold and 79 handed over. Proven is now working to complete the remaining handovers and collect proceeds from purchasers, while securing buyers for the unsold units.

Bahari, a development comprising 60 villas and townhouses in Runaway Bay, is also approaching completion. Construction on its first phase is approximately 89 per cent complete, with 55 units already sold.

At Kingston Gateway, a commercial development comprising 23 warehouses, construction has been completed and all units have either been sold or reserved.

Together, the projects are expected to produce the bulk of the targeted proceeds during the current financial year, with the remainder anticipated in the following period.

The US$63-million target represents a substantial increase over the US$28.6 million in property sales recorded during the 2025 financial year, although the expected proceeds include collections associated with units already sold or reserved.

Proven has also been generating rental income through Airbnb from unsold units at its Bloomfield Park/Avista residential developments in Mandeville, allowing the company to earn some returns while awaiting buyers.

The emphasis on collecting outstanding proceeds is particularly important as Proven seeks to strengthen its financial position following a difficult financial year.

The group recorded a US$4.8-million net loss last year despite a 5.9 per cent increase in revenue to US$74 million. Revenue growth was supported by a US$4.4-million improvement in property gross profit, but the gains were insufficient to deliver an overall profit. It’s regional operations, which span Jamaica, the Cayman Islands, Barbados and St Lucia, with additional banking exposure through its St Lucia operation’s Panama branch.

HEAVEN…it’s going to be more of a consultative model and a fee-generating model going forward