Digicel investing J$5.6b in downtown HQ
Published:Wednesday | December 1, 2010 | 12:00 AM
The Digicel Group is taking a US$65 million (J$5.6 billion) bet on downtown Kingston, representing the size of the investment in its new headquarters on which construction will last around 18 months.
The development will bring 1,000 of Digicel's regional and Jamaican staff under one roof, from where the telecom's 32 markets throughout the Caribbean, Central America and the Pacific will be managed.
"Our goal is to help rejuvenate the redevelopment of downtown Kingston," Digicel owner, Dennis O'Brien, said at Tuesday's ground-breaking where he announced the size of the investment.
"And we hope that this investment will lead other companies and institutions, not only in Jamaica but within the region to look with new eyes at downtown Kingston."
Digicel Group CEO Colm Delves later told Wednesday Business that the HQ would cost US$65 million to build. The expected completion date is May 2012.
Digicel has opted to relocate its Jamaican and group offices from the safety of the centralised business district of New Kingston to the cusp of the inner city where crime is considered a staple, in exchange for an undisclosed amount of tax relief secured by O'Brien from the Golding administration.
But by doing so, the company has reinvigorated other investors who are buying up property downtown once again, and re-establishing business there, in anticipation of an economic spin-off from the near J$6 billion Digicel is pouring in.
Prime Minister Bruce Golding also reiterated Tuesday that the Ministry of Foreign Affairs will be relocating downtown, west of Digicel, but this time he said the US$15 million Chinese-backed plan was more advanced. Construction begins next year.
"We are encouraged that a number of the larger missions in Jamaica, who traditionally like to have their offices located near to the foreign ministries have already signal that they would like to relocate here," said Golding.
"Some of them are prepared to construct buildings, where land can be made available, some are willing to rent if commercial space is available."
The Digicel project will span a total area of 211,500 square feet, including a 154,700 square foot 11-storey building with a basement, a 7,050 square foot food court and an 11,000 square foot two-storey ancillary building with a basement car park.
The new headquarters will make full use of geothermal cooling systems, wind and solar power, featuring three wind turbines and 15,000 square feet of solar panels and glass on the roofs of all three buildings.
Staff safety
For the safety of its staff, a nearby bus park developed by UDC is promised to be fully operational when Digicel moves into its new home.
O'Brien has also poured money, around J$160 million, into transforming the culturally iconic Coronation Market, giving the food vending area a different look and a less confusing layout. A second phase is under way.
The transformation of down-town is also expected to continue, this time with the Government stepping in with a plan for a section of the city to be completely 'pedestrianised', and designated exclusively for vending.
"There are other significant projects that the UDC has been husbanding, which hopefully will get out of the ground for early next year," said the PM.
"We are being very careful with how we plan the redevelopment of downtown, because it is about redevelopment, not displacement," he said.
Digicel has invested some US$850 million in Jamaica since its 2001 inception.