By Dennise Williams, Staff ReporterTHE SALE of the building, formerly known as the Island Life Centre, is now being negotiated.
Dennis Joslin Jamaica Inc (DJJI) had put the 10-story pyramid-styled structure, located in the heart of New Kingston, on the market some time last year at an asking price of US$8 million. Checks by Wednesday Business revealed that the price is now down to US$7 million.
While sales agents at DJJI declined to reveal the name of the prospective purchaser, reliable sources have informed Wednesday Business that a prominent Jamaican family with strong tourism and industrial ties had conducted inspections at the property last week.
What DJJI did state was that, "At the moment, someone is looking at the property but the outcome is not certain."
The building situated at 6 St. Lucia Avenue is described by DJJI as a, "Class A 149,000 square foot mixed commercial complex. The facility has a 10-story office tower, two floors of retail mall with food court, a cinema, gym and bank. Underground and terrace parking are provided for 140 cars." Additionally, on the top floors of the property, there are high-end luxury penthouse apartments.
All in all, the property is 94 per cent occupied. Commercial real estate experts state that in the New Kingston area, rents are in the starting region of J$350 per square foot with maintenance charges billed separately. The property was once the real estate jewel of Island Life Insurance Company. The insurance firm imploded in the 1990s with the Government of Jamaica intervening in early 1997.
DEAL
In November of 1999, the Barbadian firm now known as Sagicor acquired majority shares (46.08 million units out of 72 million issued shares) in Island Life in a deal with the Government of Jamaica. Subsequently, the company was taken over completely and merged with another Sagicor acquisition Life of Jamaica insurance company.
As part of the deal, the Government through its financial sector rescue vehicle, Financial Sector Adjustment Corporation (FINSAC), took on the failed insurance company's debt and corresponding real estate holdings. By 2002, the building formerly known as Island Life Centre was acquired by DJJI as part of the Government's strategy to off load debt and assets for cash.
