Kingston Properties to spruce up old Caldon building
Kingston Properties Limited, new owners of the old Caldon building in New Kingston, has scheduled a renovation programme that will be executed floor by floor, starting this month.
On Wednesday, the real estate company announced that it had bought and taken possession of the four-storey commercial building at 52-60 Grenada Crescent in New Kingston.
The sale for the fully tenanted building was brokered by Better Homes and Gardens Real Estate Jamaica Limited. Office space is rented there by call centre operator Advantage Communications as well as law firms, and government agencies.
The property was acquired at a price of $435 million, financed both by a senior secured loan facility with CIBC FirstCaribbean Jamaica and the net proceeds of the sale of condominium units held by Kingston Properties in the United States.
Kingston Properties CEO Kevin Richards identified the seller only as 'a consortium of private interests'. The New Kingston purchase brings to three the number of properties held in Jamaica by the company. Its other holdings are in the US and the Cayman Islands.
In September, the real estate company sold five condo units in South Florida for US$1.5 million, saying it was setting aside the proceeds for acquisitions in Jamaica and the Cayman Islands.
Richards said the disposals netted less than the US$1.5 million, after expenses. In May, the company also took out a US$800,000 loan facility with Terrabank NA in Florida for acquisitions.
Prior to the latest acquisition, Kingston Properties owned 11 units in its three markets. Its sole property in the Cayman Islands is a mixed-use building in the West Bay Beach South area.
Richards said on Thursday that while negotiations continue for a new commercial acquisition in Cayman, the process was not near completion.
Its other properties include a commercial complex on Red Hills Road and warehouse facilities on Spanish Town Road in Kingston, together amounting to more than 100,000 square feet of space.
The Caldon building was completed and occupied in 1989 as the new home of Caldon Finance Merchant Bank Limited. The structure was designed by Alberga Graham Jamaica Limited and was built by Teak Limited, according to The Gleaner Archives.
The renovation programme for the building is meant to add value to the edifice and introduce new efficiencies to cut maintenance costs, said Richards. He said the company was not working with a fixed budget for the repairs, which would be executed floor by floor.