Old BET property goes under the hammer
The ten-acre commercial site in Wildey, St Michael, which houses the BET buildings, could be in the hands of new owners by the end of October this year.
Fortress Caribbean Property Fund Limited SCC (Property Fund) reported in its half year report for the period ending March 31, 2016, that a conditional offer for sale had been received for the property.
The company did not provide details about the terms and conditions, the price tag or who had made the offer.
However, Fortress said the offer was “subjected to contract and is conditional on certain planning approvals and other terms and conditions which, if received in the agreed timelines, should result in the sale of the property on or before October 31st 2016”.
The property, which was vacated by Flow (formerly BET) at the end of October 2015, is owned through a joint venture, which includes the Property Fund, the National Insurance Scheme and Sagicor.
The northern part of the property houses several buildings and parking areas, while the southern part includes cricket grounds and tennis courts. Renovation work on the interior of the main building began in April 2016.
The Property Fund is managed by Fortress Fund Managers. Investment Director at Fortress Roger Cave said should the sale go through, it would provide a windfall for shareholders.
“The Fund would have a significant amount of cash which it could put to use in different ways. It could be directed into other income-producing assets or returned to shareholders as a dividend or through the buyback of shares, or a combination of those things. This flexibility is quite a positive move for the Fund,” Cave said.
The property’s location has made it attractive to investors, according to Cave, who added that it had been a “tremendous asset” for the Fund.
“It has been a tremendous asset in the Property Fund’s portfolio and has done exceptionally well with regard to its returns through rental income over the past 14 years. Securing a buyer at this stage, however, allows the fund and our shareholders greater flexibility going forward.”
The Property Fund invests in real estate properties in the Caribbean and internationally and offers investors the opportunity to earn income and/or long term capital gains from a portfolio of properties.