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Jamaica Producers sells real estate interest for J$1.9 billion

Jamaica Producers Group Limited has entered into an agreement to sell its 22.1 per cent interest in SAJE Logistics Infrastructure Limited (SAJE), the company announced this week.

Jamaica Producers will sell 22.1 per cent interest of its interest in SAJE Logistics Infrastructure Limited.

SAJE is engaged in property ownership and property management and the holding of investments, and prior to the sale was accounted for as an associated company of JP. The gross consideration in respect of the sale is expected to be J$1.9 billion.

JP’s interest in SAJE is held indirectly through a subsidiary of JP which has in turn been sold to SAJE and/or its nominees.

JP indicates that it will use the proceeds of sale to continue to invest in “strong Food & Drink and Logistics & Infrastructure businesses.”

The company stated that in line with the positive performance of SAJE during the time in which JP held an interest, JP is expected to report a material gain on sale in its third quarter financial statements. JP will retain a 9.5 per cent interest in SAJE through its subsidiary, Kingston Wharves Limited.

SAJE indicates on its website that it has been investing in real estate for well over 30 years. Brokerage services include sales and rentals. The company also does property management.