2 weeks ago
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Student accommodation company 138 Student Living Jamaica Limited, 138SL, is still in talks with the University of the West Indies over adjustments to its concession agreement, particularly in relation to Irvine Hall, for which it is seeking a reset.
“Once these agreements are concluded, 138SL and The UWI will both benefit from operating with better clarity after the reset of the concession agreement,” 138SL said in its June third-quarter financial report.
The new numbers indicate a slide in the company’s quarterly performance.
Revenue fell 26 per cent, from $376.5 million to $277.9 million, primarily driven by a reduction in income generated from claims relating to the Irvine Hall operations. Profit was halved from $107.8 million to $48.1 million.
138SL has an agreement with UWI to build and operate student housing facilities at the Mona campus in Kingston, under concession lasting at least 30 years.
CEO Cranston Ewan said 138SL has been in discussion with the university, for some time, predominantly about the change in the billing configuration of the recently reconstructed Irvine Hall, which falls under concession agreement number two. The hall, as configured, was to be primarily double-occupancy rooms but they operate as single rooms and therefore generate less income.
“By virtue of that, over the past few years we have been carrying a claim on the UWI, which has been reflected in our revenues,” said Ewan. “… You would earn more for a double room than a single room,” he said.
Talks around the issue have been ongoing since 2021, but got disrupted during a change of administration at the university, which happens every four years.
Ewan said 138SL signed a heads of agreement with the previous UWI Mona administration in 2021, which was to be the basis of discussions, but were not along the lines the company expected.
“Fast-forward to today, the university has a new administration, and so those discussions are now at an advanced stage,” Ewan said, adding that there was general agreement on the direction of the talks.
“There are some amendments that we have to make. The discussions are way advanced at this point in time, and we expect that they will be concluded at the soonest possible time,” he said.
Ewan also disclosed that UWI has agreed to open the halls to students of the University of Technology, Jamaica on the same basis as those enrolled at UWI, who hitherto got preferential treatment.
“Now, all those students, whether with the University of the West Indies or UTech, are now treated in the same manner for occupancy. So, you should see that acting as a catalyst for us to maintain good occupancy rates going forward, and that’s a part of the outcome of the discussions that we have had with the UWI under the negotiations,” he said.
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