2 months ago
6
First Rock Real Estate Investment Limited announced plans to regain possession of the remaining lots at its Hambani Estate residential complex from Sagicor Bank Jamaica.
Hambani Estate is a high-priced, luxury residential development that’s been beset by delays.
The move comes after Sagicor Bank took control of the lots due to non-payment of a loan. First Rock said in a market filing this week that it intends to pay off the loan with financing from a financial institution, which it did not name.
The Hambani project’s “current loan-to-value is 45 per cent”, First Rock Group Chairman Ryan Reid told the Financial Gleaner. This means that the outstanding loan on Hambani Estate is just under half of the property’s total market value.
The valuation on the property, prepared by NAI Jamaica Langford and Brown Limited and seen by the Financial Gleaner, equates to US$24.5 million.
The project was initially backed by a US$10.5-million loan from Sagicor Bank.
Hambani Estate, located on Bamboo Avenue in Kingston, features 12 villas, each spanning 8,400 to 8,700 square feet. The units entered the market at over US$2 million per unit, which pushed the limits of the luxury market.
At current exchange rates, that price is equivalent to more than $320 million per villa.
Hambani Estate represents First Rock’s first major development project, with construction commencing in mid-2021.
Before the project was launched four years ago, few properties offered modern, rectangular, white-walled motifs. The developers said that while alternative properties exist, “Hambani is the only development complex of its kind” as it provides a safe, secure, and central location.
First Rock says the development is “90 per cent” complete. It remains optimistic about finalising the complex, indicating that “once the new financier is in place”, it expects to wrap up the project within three months.
The company said there is “currently a wait list” for the unsold units, which they plan to put on the market “at the appropriate time”.
First Rock Real Estate Investment Limited holds over US$57 million in total assets. The company has been restructuring its portfolio, focusing on acquiring premium, income-generating commercial assets across the region.
Reid previously advised in March that First Rock was pivoting away from developments and towards real estate investment trust as a new operating model, that will see the company banking instead on rental income.
English (US) ·