Sagicor to reinvigorate housing market

Sabrina Gordon, Business Reporter

After putting several of its housing development projects on hold for the last three years, Sagicor Life Jamaica has re-entered the real estate market, having broken ground for the construction of a 32-unit apartment complex at Strathairn Avenue, St Andrew, a $350-million investment.

"Construction will start immediately and we expect completion in 12 months," said Rohan Miller, executive vice-president for investments at Sagicor.

In 2009, Sagicor put on hold five projects that would have delivered new homes to the market, as well as offer relief to motorists with the creation of additional parking space in the capital's congested business and financial district of New Kingston.

Miller said the primary reason for delaying the projects "was the downturn in the real estate market, and specifically in the middle-income residential real estate market".

At that time of the announcement of the projects, they were valued at about $4 billion.

But now, with a more optimistic outlook for the market, Miller said all the projects on the drawing board were being reviewed, and where conditions were favourable the company would pursue investments.

"We expect a rebound, given recent reductions in mortgage rates, better prospects in the lower-middle to lower-income segment, improving prospects in the middle to upper-middle income segment." said Miller, noting that there was continued weakness in so far as the high-income bracket was concerned.

Miller said the company was also embarking on the construction of a commercial centre in May Pen, Clarendon, on a 21.32 acre property.

The property is located on the southern side of the May Pen by-pass, opposite the Mineral Heights housing development, and is bordered to the east by the main road to Vere.

Development of houses

The estimated cost of this development, to be done in two phases, is $2 billion.

Phase one of the development plan is to build a commercial centre of 120,000 square feet, while phase two will be the development of a 'gated community' of two-bedroom semi-detached town houses.

However, for now the focus would be on the construction of the Strathairn apartments, said Miller, adding that the May Pen project is still in the early-design phase.

According to Miller, the Strathairn Avenue development will consist of 32 units in total, comprising 16 studios and 16 one-bedroom apartments. The units will be outfitted with a laundry closet, a balcony and will feature covered parking, elevator service and a rooftop fitness centre.

The studio units are expected to hit the market at a price of $11 million, while the one-bedrooms will each sell for $15 million.

The Strathairn apartments are to be located just behind the Winchester Business Centre along Winchester Road, which is also owned by Sagicor.

Among the other proposed projects that Sagicor had suspended included a multi-storey parking garage which was slated to be constructed in New Kingston at a cost of $1 billion.

Also on hold has been a residential development on land acquired on Seymour Avenue, St Andrew, targeted at the middle to high-end income segment of the market. Another 30-apartment development for Shortwood Road, St Andrew, as well as the construction of 120 homes on the tranquil coastline of Llandovery in St Ann are being reviewed.

sabrina.gordon@gleanerjm.com