Wednesday, September 18, 2013

Sagicor to list Real Estate IPO on JSE

Sagicor Life Jamaica has announced the IPO of its subsidiary, Sagicor Real Estate X Fund Limited (Sagicor X Fund) to be listed on the Jamaica Stock Exchange Main Market.  This will allow investors to participate in the returns of 12 properties, including three hotels.

Richard Byles, President and CEO, of Sagicor Life Jamaica, said “the company wanted to offer investors an exciting opportunity to further diversify their portfolios and gain attractive returns through ownership in a well-managed and diversified real estate portfolio.”

Sagicor X Fund is seeking to raise at least J$1.0 billion through the listing of 20 per cent of its shares in an Initial Public Offering (IPO) priced at $5 per share.  The proceeds of the IPO will be used to develop a water-park at the Jewel Runaway Bay Beach & Golf Resort property and to position the company for future investment opportunities.

The real estate portfolio is comprised of tourism and commercial properties and land for future development. The tourism properties are the multi award-winning Jewel Resorts at Dunn’s River and Runaway Bay, which boasts an 18 hole Championship Golf Course, along with the most recent acquisition of Jewel Paradise Cove in St. Ann. The latter property is scheduled to open for the start of the upcoming winter tourist season.  The commercial properties are comprised of the R Danny Williams building in New Kingston; Sagicor Industrial Park Norman Road; Sagicor Industrial Park Freeport, Montego Bay; Sagicor Industrial Park Marcus Garvey Drive; Sagicor Montego Bay Commercial Centre; The Sagicor Sigma Building, 63-67 Knutsford Boulevard, New Kingston; 78A Hagley Park Road, Kingston; strata lots in the Spanish Town Shopping Centre; and a vacant lot on Seymour Avenue, Kingston.

“The real estate assets are held in the real estate portfolio of the Sagicor Sigma Funds Unit Trust, which is one of the ten unit trust portfolios managed by Sagicor.  Shareholder’s value will be created through the generation of net rental income and capital gains on assets which are currently valued in excess of $12 billion. Net income is expected to improve through operational efficiencies and revenue growth” said Rohan Miller, Executive Vice President and Chief Investment Officer at Sagicor.

The Sagicor X Fund will pay dividends to its shareholders based on inflows from its investment in the Sigma Real Estate portfolio.

Byles, in explaining the value proposition for investors in the X Fund, noted the tremendous growth potential from existing properties, and foreign exchange earnings from the Jewel properties, against the background of Sagicor’s extensive experience in property development and real estate management. Sagicor X Fund also has an attractive expected dividend yield of 8 per cent per annum over the next four years, above current Government of Jamaica four-year bond yield of 7.3 per cent and the average main JSE market dividend yield of 4.1 per cent.

The Board of Directors of the Company is:

-             Richard Byles, President& CEO of Sagicor Life Jamaica; Chairman of Red Stripe; and Co-chair of IMF Programme Oversight Committee.

-             Dr. The Hon. R. Danvers (Danny) Williams, Founder and Chairman Sagicor Life Jamaica; former Senator and Minister of Industry & Commerce.

-             Michael Fraser, President & CEO of Sagicor Life of the Cayman Islands, former CEO of Island Life Insurance Company, and former President of the Life Underwriters Association of Jamaica.

-             Rohan Miller, Executive Vice President & CIO of Sagicor Life Jamaica and Sagicor                  Cayman; member of SLJ’s Asset Liability Management Committee, overseeing $150 billion of funds under management.

-             Dr. M. Patricia Downes-Grant, President and CEO of Sagicor Life Inc, former Chairman of Barbados Stock Exchange and Barbados Central Depository.

-             Stephen McNamara, Senior partner at McNamara & Company in St Lucia, over 40 years’ legal experience, Director of Sagicor Life Inc, Sagicor Financial Corporation and various other entities within the Group.

Sagicor Life Jamaica Limited is the leading life insurance provider in Jamaica. The Company commenced operations in 1970 as Life of Jamaica Limited, the first locally owned life insurance company and the first life insurance company to be listed on the JSE. Since its inception, Sagicor Life has gained a solid reputation as an innovator and leader in the Caribbean life insurance industry. The Company continues to be the market leader among local life insurance companies.

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