Dolla Financial strikes deal with Century 21
Dolla Financial Services has struck a deal with real estate brokerage firm Century 21 Heave-Ho Properties Limited to become the preferred financing partner for short term loans to its clients and agents, covering home purchase fees and incidentals.
The financing arrangement is an extension of a previous pact signed between the two companies that will see Dolla Financial and its subsidiary Ultra Financier handing over real estate business to the brokerage, including powers of sale for foreclosures and sale of properties used as collateral for loan agreements.
In the reciprocal arrangement, Century 21 Heave-Ho Properties Limited has been appointed as the exclusive real estate provider for Dolla Financial Services and Ultra Financier. In return, Dolla has created a specific loan package for Century 21 agents, dubbed DollaC21Realtor loan, which allows agents who have existing sales under contract to access short term loans from Dolla.
Dolla will also be extending loans to clients of Century 21 for home acquisition, deposits and chattels or fixtures.
“This strategic partnership falls squarely with the goal of making Century 21 a One stop shop for all our clients’ real estate needs,” Executive Chairman of Century 21 Jordan Chin told the Financial Gleaner.
He added that there is a growing need for realtors to have immediate access to cash to wrap-up deals that are under contract but may take several months to close.
“This is an exclusive package to Century 21 agents and fills a well needed gap in the industry. The news has been well received by the agents,” Chin added.
The new arrangement with Dolla Financial and Ultra Financier comes months after the FirstRock Group acquired a majority stake in Heave Ho Properties Limited, the local franchise holder for real estate brokerage Century 21. Dolla Financial is held by First Rock Private Equity Limited.
Century 21 has a network of over 60 agents across Jamaica.
In addition to grow the client base of Dolla and Ultra Financier, Interim CEO of Dolla, Kenroy Kerr, says the collaboration will enable the company to efficiently dispose of collateral properties.
The bulk of collateral properties business to Century 21 will come from Ultra Financier which generally issues commercial loans range from approximately $10 million to $240 million. The loans are backed by assets which typically runs twice the disbursed amount.
Collateral held for loans that are more than 90 days overdue are often considered for foreclosure and sale, the company said.
Ultra Financial opened a second Jamaican branch at Fairview in Montego Bay earlier this year and currently accounts for about 23 per cent of Dolla’s $2.3 billion loan book.
The partnership with Century 21 would make Dolla’s fifth partnership in recent times aimed at widening its client base, following its listing on the stock market last year. Another of its recent partnerships was with FosRich Company Limited for the financing of solar power systems and solar water heaters sold by the energy products trader.