DBJ relists Montpelier property
Published:Wednesday | December 29, 2010 | 12:00 AM
The Development Bank of Jamaica (DBJ) is making another attempt to dispose of agricultural land that once was the base of an expansive citrus orchard that proved unviable, and which fell into its hands by default.
A portion of the property has been sold, but DBJ still has another 991 hectares (2,448 acres) that it wants to offload.
Ramble Enterprises Limited, a family-run dairy farm in St James, paid J$52.46 million for 212.36 hectares (524.76 acres) of lands formerly owned by Montpelier Citrus Company Limited (MCCL), but other deals that DBJ were negotiating with Coconut Industry Board and National Housing Trust fell through, forcing the bank to relist for sale or lease the property for which it has been trying to cobble deals for more than two years.
The MCCL, which is owned by the DBJ, has losses of J$358 million accumulated over the past five years. MCCL was formed after DBJ acquired the assets of the failed Jamaica Orange Company Limited from National Commercial Bank in 1999 during the era of the financial meltdown when the bank's bad loans and non-performing assets were eventually spun off and placed under state control in readiness for its private sale.
The MCCL property, amounting to 1,165 hectares (2,877 acres), was first advertised for sale or lease over the period May to July 2008.
The offer got expressions of interest from 10 prospective investors, including the two state agencies.
The DBJ said it successfully negotiated with Ramble Enterprises and that the deal struck was ratified by Cabinet in February 2010; but that Coconut Board and NHT withdrew their offers.
The bids were evaluated on development plan, development activities, proposed capital expenditure, corporate reputation and price.
The remaining 991 hectares, using the price paid by Ramble Enterprise as proxy, is worth about J$245 million.
The new offer has a January 14 deadline for submission of written proposals for the remaining property, which straddles Montpelier in St James and Shettlewood, Hanover.