Thu | Dec 13, 2018

Sagicor X Fund exits Sigma portfolio

Published:Wednesday | June 13, 2018 | 12:00 AMAvia Collinder/ Business Reporter

 

Brenda-Lee Martin, the newly appointed CEO of Sagicor Estate X Fund Limited, says the company has exchanged all units held in the Sigma unit trust for shares in Playa Hotels & Resorts, NV, disclosing a new level of detail regarding the deal.

"We will now have indirect exposure through a company which is listed on the Nasdaq," said Martin during the X-Fund's annual general meeting on Tuesday.

X Fund, a subsidiary of Sagicor Group Jamaica, held 7.17 billion units, or 38 per cent of the Sigma Real Estate portfolio.

On May 31, Sagicor Group concluded the deal with Playa Hotel to combine their tourism assets. Under the transaction, valued at $39 billion, Sagicor gets 15 per cent of Playa to become its second largest shareholder, while Playa is expected to invest over US$200 million to build 760 additional rooms in Jamaica over the next three years. Sagicor Group CEO Christopher Zacca and Chairman Richard Byles have been assigned seats on Playa's board.

Martin said that other benefits from the new deal included geographical diversification as Playa has more than 7,000 rooms in 18 hotels under management in diverse jurisdictions, while X Fund has reduced its debt by 70 per cent.

The deal included Sagicor's Jewel resorts and the Hilton Rose Hall hotel, but Martin said Sagicor would continue to oversee the individually owned condo units at one of the resorts - Jewel Grande in Montego Bay.

The Sigma Real Estate portfolio retains ownership of the Doubletree Hilton hotel in Orlando, Florida as well as a small stake in the Jewel Grande. Prior to the deal, hotels accounted for 66 per cent of assets and approximately 70 per cent of net income of Sagicor X Fund.

avia.collinder@gleanerjm.com

 

CORRECTIONS: This story has been updated to make corrections throughout.