Big jump in cost of NHT retirement village
Published:Wednesday | November 24, 2010 | 12:00 AM
There has been a big jump in the amount of money the National Housing Trust (NHT) is asking an investor to put up to build an upscale retirement village it has conceptualised for Barrett Hall in St. James.
The Barrett Hall Lifestyle Village, to be located just outside Montego Bay, is now set to cost upwards of US$330 million (J28.3b), more than five times the initial US$63 million (J5.4b) price tag, previously released by Jampro, the Government's investment-seeking agency.
While the money hunt is on locally and overseas, the developer is looking for foreign expertise to run the venture.
"The success of the project hinges on attracting experienced operators with a track record in the retirement industry (and) as such, we are talking to a few of the top US operators," a prepared response from the NHT said.
The Trust said last week that a number of United States (US)-based operators have verbally expressed interest in the project, and are evaluating the information memorandum, with a view to having their respective development teams prepare proposals.
"The project negotiations are still ongoing, and the start of construction will be dependent on the completion of these negotiations," according to the NHT response to Wednesday Business.
As far as financing goes, however, NHT officials appear optimistic that some Jamaican investors will step forward.
"We expect that some local investors may find this to be an attractive place for their funds given that the retirement industry has been the best performing sector of the US real estate industry and typically experiences occupancy levels close to 90 per cent," is the upbeat position of the Trust.
As originally planned, the Barrett Hall lifestyle village includes 277 three and four-bedroom estate villas to be spread across 157 acres, 103 five-bedroom townhouses to be built on 42 acres, while 12 acres is to be allocated to assisted-living residences, with live-in nurses, for the elderly.
The US$330 million project estimate is based on the initial concept model of a low density development with adequate open space and recreational facilities that would appeal to retirees.
However, the NHT has made it clear that the final cost could vary depending on the final designs to be determined by the investors.
"The actual development cost will be based on the final design and concept that will rest with the investor/operator of the village and the developer of the project," the NHT statement said.
Barrett Hall, the NHT said in its response, was the only property acquired for the intended retirement village project. It cited the pending negotiations with prospective investors as reason for not disclosing the purchase price for the land.
In relation to an initial idea to have a hospital as part of the development, the Trust is, as of now, undecided.
"We believe that a hospital or medical facility would offer an interesting revenue diversification angle for a retirement operator given the large potential market for health tourism and the strategic location of the site within 20 minutes from the Sangster International Airport," the NHT noted.
"However, the decision to have a hospital within the final design will rest with the investor/operator and the project developer."
The lifestyle village concept was first developed about five years ago.
The initial thinking involved the provision of skilled nursing care and the construction of homes designed to the needs of the retiring demographic.
The village was originally slated to include housing for up to 100 nurses, community club houses, a golf course, along with the health centre or hospital.