May 2013 Financial News

Sagicor gets approval for $2b commercial project

May 08, 2013

The island's leading life insurance company, Sagicor Life Jamaica Limited, has received planning approval from the National Environment and Planning Agency (NEPA) to build a J$2-billion mall and residential complex in May Pen, Clarendon.
It marks the further diversification of the company's operations into real estate.

"Nothing is built yet, but we just received planning approval," said a source intimate with the build-out but who opted to remain anonymous on the basis that he wanted to respect protocol.

The proposed commercial development is to be sited at Curatoe Hill, Mineral Heights, and spans 21 acres.

Sagicor had two years ago indicated that the development would be done in two phases.

The first phase will involve a commercial complex developed on 9.6 acres of land incorporating a supermarket, pharmacy, hardware store, cinema, retail shops, a gas station and a police station.

gated community

The second-phase plans were for the build-out of a gated residential community of two-bedroom semi-detached town houses on the remaining lands.

Project architect Clifton Yap was not immediately available for comment yesterday. Fritzroy Nelson, project manager, Neuton Nelson, real estate manager at Sagicor, and Ingrid Card, head of marketing, to whom Wednesday Business was referred, all declined comment. Sagicor President Richard Byles was not reached for comment.

Sagicor's 'real estate assets for sale' jumped some 40 per cent year-on-year to $1 billion compared with $715 million a year earlier, according to its 2012 year-end financials. It indicates the insurance company's growing appetite for such investments.

In February, Sagicor Life Jamaica acquired its third resort property, the former Royal Decameron Fun Caribbean in St Ann, a 225-key oceanfront property.

Sagicor set up Sagicor Property Services Limited (SPS) as a wholly owned subsidiary to provide property management and real estate services for managed properties. Its primary revenue sources are fee-based income from the sale and management of real estate properties and project management.

SPS's medium- to long-term goal is to significantly increase its volume of third-party sales, according to the 2012 financials.

It said that "in 2012, the company was able to increase sales commission by 17 per cent. With the real estate market being relatively soft, intensive efforts are required to continue achieving targets of double-digit growth in revenue," the financial report said.


Source:
steven.jackson@gleanerjm.com
Jamaica Gleaner
Wednesday May 8, 2013

http://jamaica-gleaner.com/gleaner/20130508/business/business3.html