DBJ splits Montpelier - Selling 375 acres for housing
Published:Wednesday | December 14, 2011 | 12:00 AM
The Development Bank of Jamaica (DBJ) is making a fresh attempt to dispose of agricultural land that was once the site of an extensive orchard by divesting 375 acres for residential purposes in the first instance.
The bank is also separately attempting to divest a commercial/ industrial property controlled by the holding company, Montpelier Citrus Company Limited (MCCL), in St James.
The new strategy is a reversal of efforts over the past three years to sell the 2,287-acre property en bloc. The DBJ said it was now in the process of preparing the 375 acres for divestment.
DBJ's Managing Director Milverton Reynolds told Wednesday Business last week that the bank would be employing "a more targeted approach to potential investors - such as real-estate developers and private-sector groups - to ensure the widest possible exposure for the investment opportunity.
"It is anticipated that the transaction will be completed by March, 2012," he said, adding that the DBJ was reviewing its strategy options for the divestment of the remainder, measuring more than 2,000 acres, during the course of the next year.
The process for the sale of the two packages will be conducted via the usual competitive tender, the DBJ said.
MCCL, which is owned by the DBJ, has incurred accumulated losses of J$358 million over the past few years. The company was formed after DBJ acquired the assets of the failed Jamaica Orange Company Limited from National Commercial Bank in 1999, during the financial meltdown when the bank's bad loans and non-performing assets were placed under state control in readiness for private sale.
The MCCL property was first advertised for sale or lease over the period May to July 2008. Some 212.36 hectares have already been sold, but deals considered for sale of the remainder have fallen through.