Sygnus Real Estate targets Mammee Bay and Lakes Pen developments in 2025

 

Horace Messado, Chairman, Sygnus Real Estate Finance Limited commented in the annual report released on December 29, 2024, that Lakespen and Mammee Bay in particular, represent the next step in the company’s growth strategy, stating, “we anticipate significant progress in the next financial year."


The Mammee Bay property owned by the company is over 14 acres of beachfront property on Jamaica’s North Coast. It will be developed for the hospitality industry in Jamaica.

Lakespen in St. Catherine is a 55 acre property investment project to provide serviced lots for the future development of industrial warehouse space, in St. Catherine, Jamaica.

To further support its long-term growth, SRF successfully J$3.38 billion during the financial year, as the Group initiated a dual currency multi-tranche capital raise through a private placement of four-year senior secured debt.

The facility was upsized, closing with proceeds of approximately US$15.00 million and J$1.76 billion; totaling J$4.11 billion. The capital raised was earmarked for deploying capital into additional real estate investment assets and refinancing existing debt.

The capital raise coincided with the start of SRF’s second investment life cycle, as it is increasing its portfolio towards more income-generating investments.

One of the tranches of SRF’s newly raised capital has a variable interest rate after the first year which SRF expects to benefit from as market interest rates trend downwards.

Sygnus Real Estate Finance Limited realized profit of $315.08 million at August 31, 2024, a 49.0 per cent increase from last year’s $211.44 million.

The share of gain on joint ventures, which captures SRF’s 70 per cent ownership of the now 99 per cent complete One Belmont development, increased by 45.1 per cent or J$153.27 million and amounted to J$493.49 million for FYE Aug 2024 compared to a gain of J$340.22 million last year.

Management commented, “In a move to strengthen our balance sheet and create long-term stability, we successfully raised J$4.11 billion through a private placement, our largest capital raise to date. This additional capital will allow us to reinvest in new real estate opportunities and rebalance the portfolio for continued growth. With $14.70 billion in real estate assets on the balance sheet, we remain committed to reinvesting capital in income-generating assets.”



Total investment income increased by 9.6 per cent to $839.24 million, up from $765.56 million the previous year. Average equity (ROE) over the first investment cycle of 19.1 per cent, while our book value per share now sits at J$24.85.

The flagship 9-storey commercial tower, developed through joint partnership, achieved practical completion during the financial year.

Spanish Penwood, the company’s first development project, Spanish Penwood was successfully exited and generated its first full year of lease income.

Sygnus Real Estate optimized the return on two investment properties via strategic sale to third parties, generating a gross gain of 30 per cent.

Management stated that upcoming investments in notes and other structured financial products are expected to further enhance income streams.

 

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