JMMB real estate fund raising US$3m
A JMMB Group subsidiary overseas is raising US$3 million through its first Real Estate Closed Investment Trust Fund.
The offer period ran from July 31 to August 18, the financial conglomerate disclosed this week.
The funds are being raised by mutual fund company JMMB Sociedad Administradora de Fondos de Inversion SA (SAFI), based in Dominican Republic, a company in the 'incubatory stage' of operation, said the group in its newly released financial results for the June first quarter.
JMMB Group said it spent $98 million to get new business lines off the ground, including SAFI and pension fund administrator JMMB AFP BDI SA, which is also based in Dom Rep.
SAFI has $393 million in funds under management.
In the quarter, JMMB Group profit dipped from $603 million to $593 million, which the company attributed partly to the start-up costs for the Dom Rep businesses. The larger impact came from the asset tax, which consumed $405 million and accounted for more than a sixth of operating expenses in the quarter.
JMMB Group operates in three markets, which together earned $3.4 billion of revenue in the June quarter - its home base Jamaica, Trinidad & Tobago, and Dom Rep. Based on the quarterly results, Dom Rep represents just around eight per cent of group revenue, while Trinidad contributes 18 per cent.