LIFESTYLE and real estate company, Pulse Investments Limited recently concluded negotiations for a JM$1.1-billion seven-year bond. The deal was arranged and underwritten by Barita Investments Limited.
This follows the company’s capital raise of $1.2 billion earlier this year, which comprised a JM$440-million short-term loan and a JM$760-million note from shareholders used to retire debt and complete payment for the Villa Ronai property. The nine-acre, Stony Hill-based estate was acquired at a cost of JM$600 million. The property was previously operated under a 50-year lease agreement by the lifestyle company from majority owner and Pulse Chairman Kingsley Cooper.
Pulse, in its quest to further build out the legacy of the 80-year-old property and create more value for shareholders, has said that it will use a portion of this new funding to embark on the roll-out of a first phase its 30 Pulse Homes development.
“Construction is planned to start later this year, once all related approvals are in hand,” the company said in a notice posted with the Jamaica Stock Exchange (JSE).
The housing project is expected to be completed by 2024 and aims to attract local and foreign stakeholders interested in owning eco-friendly, low-density, leisure and lifestyle two- and three-bedroom units.
The remaining portion of this funding, the company said, will be used to repay a JM$440-million short-term loan.
“The Jamaica Central Securities Depository (JCSD) Trustee Services will be trustees to the bond offer, and it is intended that the bond will be listed on the private market of the JSE,” the company also stated.
The company, which first sought to raise additional capital to fund its projects from the launch of an additional public offer (APO) last year, had to turn to the private bond market after its plans became disrupted by the novel coronavirus pandemic. The prospects for an APO launch, however, still exist and it is expected to be done some time in the future.
“Our pipeline plans are now ready to move forward [although] for some, we must wait until COVID recedes. Our intended APO is also still on the table, but not for 2021,” Cooper told the Jamaica Observer in a previous interview.
Up to its nine-month period ended in March, earnings for the company grew to JM$928 million — JM$200 million more than that of 2020. The company has, however, indicated a delay in the filing of its last-quarter audited financials, which it said it expects to file with the JSE soon.