Wed | Jan 16, 2019

EXIM Bank says Dorchester space its sole real estate holding

Published:Sunday | January 25, 2015 | 12:00 AM

Avia Collinder, Business Reporter

The National Export-Import Bank of Jamaica says space initially acquired for office purposes at the Dorchester on Oxford Road In Kingston has improved significantly in value since the time of purchase in 2007.

The bank itself occupies space at 85 Hope Road in Kingston. The terms of its occupancy of that property were not disclosed. However, EXIM Bank said the Oxford Road property, which it previously occupied, is its only real estate holding.

EXIM Bank is first call for trade financing institution and the Caribbean's first export-import bank, established in May 1986.

The bank said that the 14,000 square office space, which comprises the ground floor of the Dorchester, was acquired seven years ago at a cost of of $99.94 million. Its reason for moving to Hope Road was not disclosed.

The latest valuation, done in 2014 on Dorchester, values the property at $160 million. The cost of retrofitting the building for rental was $327,000.

EXIM recently acquired a new tenant for the property - the Jamaica Social Investment Fund (JSIF). An official of the bank says JSIF is paying rental of "$1,100 per sq ft in year one $1,188 per sq ft in year two and $1,283.04 per sq ft in year three".

Developed in 1994, the Dorchester was a joint venture project between GMC and National Housing Corporation, with the Housing Ministry putting up the land.

In 2003, the building was put into receivership and became the subject of a court battle between its developer John Cooke and creditors. Sections of the New Kingston property were placed in the control of Finsac's bad debt collection agent.

The apartments owned by individuals were not affected.

Up to 2006/07, the ground floor of the building was occupied by National Investment Bank of Jamaica, which was merged with the Development Bank of Jamaica, which has its own building on Oxford Road.

EXIM did not confirm the vendor from which it bought the ground floor.