Thursday 12 December, 2019

Sygnus invests US$3 million in high-end MoBay development

Sygnus Real Estate Finance Limited (SRF) has broken ground for its first major development, a high-end residential complex in Ironshore, Montego Bay.

SRF, a real estate financing company within the Sygnus Group, has invested US$3 million in the development, named Surreal at the Sugar Mill, contributing to the overall financing.

Total development costs and the identity of the developer were not shared. But the property is located on 1.4 acres of land in the Ironshore on Sugar Mill Road in St James.

The complex will be a secured gated community with one-bedroom, two-bedroom, three-bedroom units and three-bedroom villas, with 24-hour security, CCTV and other high-end amenities, Sygnus said in a release.

Sugar Mill is located just a stone's throw away from the Sangster International Airport in Montego Bay. Unit prices start at US$197,400 for the one-bedroom units.

Sygnus said Wednesday that buyers being targeted for the complex include families who are acquiring a high-quality property in a desirable neighbourhood in western Jamaica; as well as investors looking for a good return on their investment.

An artist's impression of the Sugar Mill development.

They are also targeting corporate organizations who are interested in renting/leasing or acquiring their own property/properties; and foreign investors who are interested in owning vacation homes in Jamaica.

Sygnus completed a successful private placement at the end of August 2019 for $2.3 billion from investors - largely pension funds.

The company has made commitments to six projects valued at US$30 million.

According to the company, capital will be deployed in these projects as either debt or equity in keeping with the company’s strategy to bring flexible capital to unlock value in real estate assets.

The majority of the projects are commercial developments, including industrial infrastructure (warehouses and parking facilities) as well as corporate office complexes that are located in key locations around Kingston and St Andrew.

SRF seeks to finance real estate assets using flexible capital, such as debt and equity, via non-traditional structures including profit sharing notes and mezzanine financing.

The company said in its release that it intends to execute these projects on its own or through joint-venture partnerships.

David Cummings, Head of Real Estate and Project Finance at Sygnus.

"We are taking a partnership-based approach to our real estate projects. What this means, is that we are combining creativity with flexible capital to ensure our partners succeed," said David Cummings, Head of Real Estate and Project Finance.

He added: “We find that this delivers the most value. We look forward to working with like-minded partners in all classes of real estate assets, including hospitality, commercial, residential and industrial, across Jamaica and the wider Caribbean.”

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