Blue Cross building on the market
Published:Friday | June 18, 2010 | 12:00 AM
Sagicor Life of Jamaica is shedding the historic Blue Cross of Jamaica property, acquired 18 months ago when it bought the company's health-insurance portfolio for J$1.7 billion.
The 40,000-square foot building at Old Hope Road in St Andrew has been listed for sale for several months now, Richard Byles, president and chief executive officer of Sagicor Jamaica told the Financial Gleaner.
"Yes, it is on the market and we have had more than one offer for it," he said, but did not say whether any of them were considered attractive enough to strike a deal.
With the property still up for sale, however, indications are that the company is yet to receive an offer it likes.
Byles also declined to say what the property was being sold for.
"We have a valuation, but I don't think I want to tell the whole Jamaica what that value is. I want people to make me an offer that is attractive," he said.
Real estate sources, however, estimate that the property could be valued upwards of J$600 million.
"This estimation is based on the income it can derive and the capitalisation it can get," said the realtor, who asked not to be identified.
Since the acquisition of the Blue Cross assets in December 2008 that handed Sagicor command of more than 80 per cent of the health-insurance market, the company has been trying to offload some of the real estate it took on.
Rohan Miller, Sagicor's vice-president of investments, said back in September 2009 that the life-insurance company, which is also in the business of developing property, does not go as far as managing residential estate.
He was reacting then to the listing of the 12 Emerson Court apartments next door to the former Blue Cross corporate centre.
Two former Blue Cross offices in Montego Bay were also on the market.
Up to late last year, Sagicor had sold six of the Emerson Court apartments from which it was looking to earn J$132 million.