Unlocking real estate value
Sygnus Real Estate Finance working in Jamaica, Caribbean with several projects in the pipelineSunday, July 25, 2021
BY DURRANT PATE
Sygnus Real Estate Finance (SRF) has set out an ambitious plan of unlocking real estate value across the Caribbean and has been pioneering that work in Jamaica, with much success in its two years of existence.
SRF, which is a specialty real estate investment company within the Sygnus Group, which facilitates the development and financing real estate assets across the Caribbean, is already making headway in unlocking value in a number of what is considered idle lands spread across the island. The company's IPO, which opened on Friday (July 23), is seeking to provide the capital for SRF to unlock the values in real estate starting in Jamaica and then broadening to the entire Caribbean.
SRF is offering up to 207.6 million ordinary shares for a target capital raise of J$3.9 billion, subject to the right of the company to upsize the offer up to a further 38,857,193 ordinary shares bringing the total capital raise up to J$4.5 billion.
CREATIVE FINANCING FOR UNLOCKING IDLE LANDS IN JAMAICA
Sygnus Group co-founder and Vice-President Jason Morris pointed to the vast amount of idle lands across Jamaica, the value of which remains unlocked because of “the absence of creativity, financing structure and partnerships for unlocking the value, so we designed from Sygnus Real Estate Finance to do just that”. He argued that SRF has been doing very well in unlocking real estate value across the island from the real estate assets it has on its books and the partnerships it has developed.
These partnerships, both Morris and Sygnus Group co-founder and Chief Operating Officer Dr Ike Johnson articulated, have been doing well in unlocking real estate value across Jamaica. SRF has been utilising a number of creative means of unlocking such real estate value such as partnering with property owners in developing their properties by providing equity and debt capital, share swaps with a clear exit strategy, financing purpose build real estate for clients as well as other creative alternative financing methods.
SRF PLANNING FOR THE FUTURE
SRF has clearly shown that its thrust is not just for now but the future, having acquired and looking out for other properties with future developments in mind. Among these forward looking developments is the multi-billion-dollar Logistics Park in the Corporate Area. This project will be a massive one built around one of the main business corridors of Jamaica. An announcement on this venture will be made in the coming months but that project is only now in the conception phase and hasn't been sized as yet. The capital outlay for this project will be billions of dollars and would involve several warehouse spaces. This project is being trumpeted as a great opportunity to transform a well located piece of land into a major logistic hub, which will be a transformative type of investment in Jamaica.
SRF currently has an active pipeline of real estate investments, which are being developed with many of them at the concept phase. These include Lakes Pen in St Catherine, the land housing the former French Embassy in St Andrew and Mammee Bay, where SRF is exploring various options for the most optimal way to unlock the maximum value for this property based on feasibility study by an international consulting firm in Miami, Florida.
One of the upcoming projects is the One Belmont Office complex on Belmont Road in New Kingston, St Andrew, where ground will be broken in the coming months. Other projects in the construction phase are Oceans Edge, which comprises 16 four-bedroom, two-storey townhouses, which have all been sold out and the multi-billion head office being built by SRF for the Dominican firm IMCA Jamaica at 443-445 Spanish Town Road, Kingston.
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