Executive chairman of Parallel Real Estate Development Ventures Limited Tyrone Wilson at the AC Hotel last Saturday introduced the company’s first venture, The Chalet, a residential development earmarked for Bengal Beach, St Ann.

Designed by architects at Studioh Core, the one-acre property will feature eight luxury apartments with between one and three bedrooms that have a view of the Caribbean Sea. Another component of the property will be a wellness centre that includes a gym, spa and juice bar.

The development, which has a $500-million price tag, will be funded by a combination of debt and equity. Wilson told the Jamaica Observer that JN Bank “will be funding a majority of that”, with between 20 per cent and 35 per cent coming from equity. Parallel has tapped iCreate, another Tyrone Wilson-led company, for capital, and the Kevin Donaldson-led Roots Financial for capital support.

“Parallel is the company behind the development and it approached iCreate to partner in the venture. [So] iCreate has acquired a majority stake in the project,” Wilson explained.

“It’s the first for Parallel. It is a small project — manageable — funded by internal partners but, of course, we have ambition, so we have a pipeline of projects lined up in St Ann, in Kingston,” he continued.

Parallel will break ground for The Chalet in January, and Wilson said he expects the project to be completed by the end of the third quarter of 2023.

When asked about the pipeline of projects to which he referred, Wilson noted that Parallel is now finalising a partnership for a residential development and a commercial development in Kingston.

He added that as a new company in the real estate development space, “we’re looking to grow to be one of the mainstays”. In this regard, he was not shy about listing another company on the stock market.

“Our company Parallel is going all the way. We have a lot of opportunities. We’re looking to as far as the Jamaica Stock Exchnage for growth,” Wilson informed guests at the launch, expressing confidence that Jamaica’s real estate and construction sectors are poised for growth.

While there are talks about a real estate bust, Wilson said he has been hearing this same discussion since going to university.

“Jamaica is ready and ripe for growth in the real estate sector… we know the industry has a far way go. It’s a lot of development, a lot of opportunities there in Kingston, Montego Bay and St Ann — all the different parishes,” he stated.

On this note, Caribbean Business Report asked about the possible impact of inflation and tightening monetary policy on the luxury real estate segment and what was the demand like for units at The Chalet.

In response he said that St Ann is a green market for luxury housing developments.

“The interest that we’re seeing in the Chalet itself, before even launching, doesn’t suggest there’s any tightening. I think definitely in the market itself there is excess demand in Kingston and especially in St Ann,” Wilson explained.

He however conceded that having gone through COVID, supply chain disruption has resulted in inflated costs of construction inputs. But he also noted that with units at The Chalet starting at a minimum US$250,000, the development should be considered as “affordable luxury” or “middle luxury”.

The units, he added, offer a return on investment for those who wanted to acquire them for investment income.

Keller Williams is the real estate agent on the project while JN Bank will offer mortgages on the units.