Sagicor Bank Places First Rock Flagship Development Project Into Receivership

Sagicor Bank Jamaica says it has placed the lands under mortgages for the Hambani Estate development, granted to First Rock Real Estate Investments Limited, into receivership.

Hambani Estates is First Rock’s flagship development project.

The development situated at 1-3 Bamboo Avenue, Kingston 6 consists of 12 townhouses that cost between US$1.8 milion and US$2 million.

First Rock has also issued a statement indicating that it has engaged a financial institution to refinance the credit facility extended by Sagicor to the company.

Mahiri Stewart reports.

In a statement on Wednesday morning, Sagicor noted it had made the difficult decision to place the lands under the mortgages for the luxury development, granted to First Rock, into receivership.

This is with the exception of one house lot. According to Sagicor, that single house lot has been fully paid for.

A receivership is a remedy available to secured creditors to recover amounts outstanding under a secured loan in the event the company defaults on its loan payments.

In its statement, Sagicor disclosed that the decision follows months of good-faith efforts to reach a fair and sustainable resolution. It says this outcome is the result of extensive dialogue and compromise.

Sagicor says the move comes only after exhausting all reasonable alternatives to achieving a mutually beneficial resolution.

The bank says its responsibility extends not just to its partners but also to clients, employees, shareholders, and the broader community.

Sagicor Bank ended its statement saying it remains committed to operating with prudence, transparency, fairness, and integrity and will continue to act in the best interest of all its stakeholders.

Meanwhile, First Rock has also issued a statement on the matter.

The company’s statement was made public on the website of the Jamaica Stock Exchange on Wednesday morning.

First Rock advised of its intent to refinance the credit facility extended by Sagicor surrounding the development of the Hambani Estate residential complex.

According to the company, given the maturity of the credit facility, First Rock has engaged with a financial institution with a view to fully repaying the facility.

First Rock also confirmed that Sagicor Bank had taken possession of the remaining lots.

In the meantime, the Hambani project currently stands at 90 per cent completion, with practical completion having been obtained within the development already.

First Rock says once a new financier is in place, it expects the project to be completed within three months.

Hambani was marketed as being the only development complex of its kind which will provide the ultra-wealthy with a safe, secure and central location in the heart of Kingston 6.

First Rock has indicated that there is currently a wait list for the three unsold units, which they plan to put on the market at the appropriate time.