Wed | Dec 6, 2023

Cherry Hill to raise $2.2b for Chalmers Avenue projects

Published:Wednesday | March 9, 2022 | 12:10 AM

Cherry Hill Developments Limited, a real estate company affiliated with Mayberry Investments Limited and the Musson Group, is approaching the bond market for $2.2 billion to finance new construction projects.

“We are building two more buildings,” said Mayberry Investments CEO Gary Peart. “The funds are to finance it.”

Cherry Hill is raising the funds in two tranches of $1.36 billion, an offer that was placed on the market on March 1, and $840 million, which opens for subscription on May 30.

The bonds arranged and brokered by Mayberry will pay interest of 8.25 per cent per annum until maturity in 2026. The debt is being secured by 8.5 acres of land at Chalmers Avenue in Kingston. The total size of that property spans 33 acres.

A large chunk of the funds raised will go towards the early repayment of existing bonds valued at $1.36 billion, which mature in May, according to the term sheet. The remaining proceeds will finance two commercial office buildings to be developed on five acres of the property, Peart said.

The first complex at the Chalmers Avenue property was financed from a US$10-million bond issued in 2019. That complex is now occupied by tenant Outsourcing Management Limited, a call centre operator that trades as itel, which moved in during 2021.

“We are currently negotiating to build even more,” said Peart. “Once completed, the tenanted building would be an ideal investment for pension and property funds,” he said.

Cherry Hill operates from Newport West in Kingston. Its directors are Gary Peart, Musson P.B. Scott, and real estate agent Samuel Catling, according to Companies Office of Jamaica records.