VM Wealth acquires New Kingston property
The acquisition is the first purchase by the investment firm through its new Property Fund, which forms part of its Unit Trust offering.
There are no immediate plans for the building that currently houses 39 tenants and will continue to serve as a rental unit for businesses. But VM Wealth expects the purchase to redound to the benefit of the Fund.
VM Wealth further noted that a change in the buildings’ name can be expected in the coming months
“We launched our Unit Trust in September 2016, and our equity portfolio was the best-performing equity fund in Jamaica with a return of 16 per cent up to December 2016. We have now moved to offering our clients the option to invest in real estate with the introduction of our Property Fund,” said Rezworth Burchenson, Deputy Chief Executive Officer, Victoria Mutual Wealth Management, who spearheaded the building’s acquisition.
“Our calculations have indicated that real estate is one of the better performing asset classes over the long term and this Portfolio allows investors a vehicle to participate in that growth. We anticipate great returns from our purchase of the Towers - that of over 10% per annum in the long term,” continued Burchenson.
According to Burchenson, “VM Wealth Unit Trust operates for the benefit of its clients and 100% of the capital appreciation and the rental income from the Towers will be for our Unit Trust Holders.”
VM Wealth’s move to purchase the building holds in line with its Unit Trust strategy of providing innovative, modern, aggressive investment solutions for their clients.
Burchenson also noted that a major part of creating wealth for their clients is making wise investment choices.
“Our Property Fund was created in a drive to provide a range of portfolio options to our clients based on their needs and risk profile. We are in the process of finalising major efforts to buildout this portfolio while allowing some diversification into other segments of the real estate market,” he said.
The Towers, which sits on close to 2 acres of land and with over 112,000 square feet in the heart of New Kingston. Its prime location and the building’s maintenance over the years made it an easy decision for the organisation to acquire the property.
Victoria Mutual Wealth Management recorded $310.98 million in profit after tax as at December 2015, a marked increase of 31.35% over the 2014 financial year.