Sygnus Real Estate Finance eyeing another residential resort development

Beaming with success from its Ocean Edge Country Club residential resort development in Discovery Bay, St Ann, Sygnus Real Estate Finance Limited is investing in a similar multimillion-dollar resort project.

Sygnus President and CEO Berisford Grey, who made the disclosure during an interview with the Caribbean Business Report, said the land has already been purchased and the project is now in the conceptual phase. He admitted that Sygnus Real Estate Finance decided to go into this latest residential resort development because of the success of Ocean Ridge, which comprises 16 four-bedroom, two-storey townhouses, which have all been sold out.

Sygnus Group President and CEO Berisford Grey (File photo)

Quizzed about the capital outlay for this project, Grey indicated that it was too early to tell considering that Sygnus Real Estate Finance Limited, which is a specialty real estate investment company within the Sygnus Group, has just gone into the conceptual phase.

However, he indicated that the project will be similar to Ocean Ridge, which Caribbean Business Report has learnt that the starting price for each unit was US$485,000 (approximately JM$73million).

The Sygnus Group president and CEO remarked that the real estate asset class is doing very well in Jamaica, which informs why his company is making these investments in that segment of the market.

Residential resort developments attracting investors

“Residential resort developments like Ocean Ridge are attracting buyers not just from Jamaica, but also overseas so we see the resort development asset class as having good potential upside,” Grey lamented.

In conclusion, he made the point that Jamaica’s real estate market is coming back and Sygnus intends to take advantage of this fact.

Informed sources told Caribbean Business Report that proceeds from Sygnus Real Estate Finance initial public
offering (IPO), which opened on Friday, July 23, 2021, and closes on August 20, 2021, will partly fund this development as well as the recently disclosed multi-billion-dollar Logistics Park in the Corporate area.

“Residential resort developments like Ocean Ridge are attracting buyers not just from Jamaica, but also overseas so we see the resort development asset class as having good potential upside”

— Sygnus Group President and CEO Berisford Grey

Through the IPO, Sygnus Real Estate Finance is seeking to raise upwards of JM$4 billion dollars in capital. The company is offering up to 207.6 million ordinary shares in the company for a target capital raise of JM$3.9 billion, subject to the right of the company to upsize the offer up to a further 38,857,193 ordinary shares bringing the capital raise by in excess of additional JM$500 million.

Details of the IPO

The shares on offer are divided in two classes (J$ shares and US$ shares). The subscription price is JM$19.30 and US$0.1270 per share for the general public. However, a discounted price of JM$17.90 and US$0.1170 per share is applicable for existing shareholders and team members and JM$18.30 and US$0.1210 per share for key investors.

The lead arranger is Sygnus Capital Limited while the joint lead brokers are Sagicor Investments Jamaica and Scotia Investments Jamaica. Over the past 19 months the company has had a string of successes such as its deployment of an estimated JM$5.65 billion across a total of 12 investments since inception in Jamaica, which was its initial
focus of investment capital.

Sagicor Investments Jamaica is lead broker with Scotia Investments for the Sygnus Real Estate Finance initial public offering. (File photo)

This is more than 2.5 times the company’s initial share capital of JM$2.0 billion. In his statement appending in the prospectus, Sygnus Group Chairman Clement Iton argues that, “This highlights the creative use of its capital base to acquire key strategic assets and extend flexible financing to real estate projects at a time when all economies need
private sector capital to be put to work.”