4 weeks ago
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Retired investment banker Christopher Williams has joined forces with Gary Matalon and others to form a new real estate development firm that’s taking aim at the short- term rental market, with a pipeline of projects that may extend beyond Jamaica and into the Caribbean region.
One of the early residential projects to be tackled by Different Properties Jamaica Limited is earmarked for property in Kingston.
“That property will span 70 units,” said Gary Matalon, shareholder and CEO of Different Properties, in an interview with the Financial Gleaner. “The total project cost for the initial development comes in at around US$12.5 million,” he said. The investment is just shy of $2 billion in Jamaican currency.
Matalon said the Kingston project would be financed by cash from the shareholders in Different Properties as well as loans.
“Within the next two months, I will be able to publicly present a full package, explain all the details, and engage with potential investors,” he added.
The company expects to begin construction on the Kingston project as early as summer of this year. Smaller projects are also planned for Ocho Rios, with potential investments also likely in The Bahamas, Cayman Islands, and St Lucia.
Different Properties was established last month, in mid-February, Companies Office of Jamaica records show. Its three shareholders are Matalon, of the project management firm Neustone; Williams, the retired CEO and co-founder of Proven Group, an investment firm with holdings in banking and financial services, manufacturing and real estate that are spread across Jamaica and other Caribbean countries; and Richard Levee, who is also a partner in Neustone. Each holds 1,000 shares, according to Companies Office records.
All three are directors of Different Properties, with Williams serving as chairman.
The company’s business model involves developing units for sale and leaseback into a managed pool of properties that will be placed on the short-term rental market. The properties will be marketed through online platforms, including but not limited to Airbnb. Different Properties is targeting travellers seeking modern, hotel-style accommodations that are infused with local culture.
“The purchaser is somebody who doesn’t want the headache of managing the short-term rental – letting in the guests, cleaning the place when they leave; it’s all done for you by the management company,” Matalon explained. This approach avoids the unnecessary overheads of hotels, while maintaining a “kind of hotel feel” with amenities such as a bar, café, and other second-home features, he said.
Matalon described the existing pool of short-term rentals as generally “unreliable and inconsistent” in terms of rooms, hosts, cleanliness, and locations.
“We are looking to eliminate a lot of those challenges,” he said.
“We want to carve out our lane and be different. We’re not trying to just build another townhouse to add to the abundant inventory that already exists,” he said. “We are looking to serve the tourism industry on the development side.”
Different Properties is emerging amid downturns in real estate and construction. The visual signs can be seen throughout Kingston, where various real estate projects have either slowed down or have been halted. Additionally, across the broader economy, construction loans dipped to $48.3 billion last December from $52.3 billion a year earlier. And the Planning Institute of Jamaica also reported that the construction sector experienced five consecutive quarters of declines through to the December 2024 quarter.
Matalon has worked in project management for over two decades but has always wanted to go deeper into real estate development. As director of KLE Group Limited, he got a taste when the entertainment business dipped its toe into the development of a resort complex called Bessa. But Different Properties takes him even closer to his goal.
“This is the opportunity to make the transition,” Matalon said.
He and Williams hold the view that while certain segments of the residential and commercial markets are saturated, opportunities remain in the short-term hospitality space.
Different Properties’ second complex is to be developed in the resort town of Ocho Rios, in a spot that’s “not far from the beach” and “within access to everything”.
“Ochi is a hub to all the major areas — to Kingston or Montego Bay,” Matalon said.
Matalon was once CEO of KLE Group but gave up his operational role in 2021. He remains a shareholder and director of the company he co-founded.
Regarding the Bessa project, a decade-long venture involving villa-style homes that was beset by delays, Matalon said it was recently completed. KLE holds a 25 per cent stake in the project, with the remaining 75 per cent interest held by insurance conglomerate Sagicor Group Jamaica.
Williams, who is now described as an investor, retired from Proven in January but remains on the board of management company Proven Management Limited, as well as a shareholder. His other post-retirement ventures include Spark FDI Limited, which specialises in attracting foreign direct investments, and a venture fund dedicated to youth-focused investments.
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