Eppley deepens commercial property holdings with Mall Plaza purchase
Published:Wednesday | January 6, 2021 | 12:06 AM
Eppley Caribbean Property Fund Limited SCC – Value Fund (ECPF) says its recent multimillion-dollar acquisition of a 50 per cent controlling stake in Mall Plaza at Half-Way Tree in St. Andrew, is an indication of a deepening of its presence and operation in the industrial and commercial real estate market.
“Landmark commercial assets of this size and quality are hard to come by, and change hands infrequently in Jamaica. This transaction (shows) Eppley Caribbean Property Fund’s ability to originate and complete transactions at a large scale and to be the buyer of choice for private owners of landmark commercial properties regionally looking to work with a trusted partner,” Eppley’s general manager, Justin Nam said in response to Financial Gleaner queries, following the announcement of the acquisition.
The purchase price for the property remains undisclosed, but under the agreement, ECPF acquired a 50 per cent interest and assumed control of the management and operations of the popular retail shopping plaza, owned by Rock Investments Limited. Rock Investments is controlled by the Mahfood family, which also owns the neighbouring Village Plaza.
“In keeping with our long-standing policy, we are not at liberty to disclose the purchase price or the terms of the fund’s property acquisitions,” Nam said.
Tax Administration records show that for property tax purposes, Mall Plaza’s 40 shops are valued in excess of $211 million.
In recent years, Mall Plaza underwent significant renovations, the first phase of which was said to have cost in excess of $100 million. The recent refreshing of the brick-and-mortar storefronts allows Eppley to avoid any significant capital projects at the property in the immediate future.
Mall Plaza spans over 69,000 square feet on a 2.3 acres parcel of prime land along the Constant Spring Road shopping district. The acquisition allowed the transfer of ownership from private control to that of the listed fund. ECPF is one of the largest listed real estate mutual funds in the Caribbean and trades on the Jamaica, Barbados and Trinidad and Tobago stock exchanges. At the completion of this acquisition, ECPF will own 14 buildings in Jamaica and Barbados comprising over 740,000 square feet of commercial space.
Mall Plaza is an iconic property in the Corporate Area’s commercial landscape, according to Eppley’s Nam. It sits in the heart of one of the city’s busiest commercial districts. Its location close to the Half-Way Tree bus terminus and its frontage directly on Constant Spring Road give the property strong visibility and high foot and vehicular traffic. The property remains fully occupied.
“These features make it extremely difficult to replicate and are a source of real, enduring value,” Nam stated.
Since assuming control of the fund in 2018, Eppley’s strategy has been to scale and diversify, stated Nam. As a result of executing control of the fund from a Barbados-based entity, it doubled the fund’s equity base, more than doubled the number of buildings owned in the portfolio, and diversified geographically and by sector. The fund’s capital stands at $95 million Barbadian, or US$47.5 million, as at September 2020 compared to $88 million Barbadian, or US$44 million, a year earlier.
“Our acquisitions have been, and will continue to be focused primarily on industrial and office properties,” Nam said.