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UDC Projects J$3B Earnings From Real Estate Sales

Tue, May 5, 2009

General



In a bid to raise revenue and lower expenses, the Government seems set to offload almost J$10B in assets that are currently being held by the Urban Development Corporation. This includes the Forum Hotel Complex and the Oceana Hotel Complex, both of which were advertised for sale in the media recently.

According to the Jamaica Public Bodies Estimates of Revenue and Expenditure for the year ending March 31, 2010, the UDC projects that it will earn J$3B from real estate sales (up from $134 million the year before) and J$943M from gain on sale of investment property. It expects to generate net profit of J$6.1B after the inclusion of dividends, which is projected consequent on the sale of major non-core assets owned by a subsidiary, gain on disposal of investment properties and corporate taxes.

Some of the properties that the Government controls through the UDC or its subsidiaries: Bloody Bay Hotel Development Limited (operated as Grand Lido Negril by SuperClubs Jamaica), The Jamaica Pegasus, Ackendown New Town Development Company (which has held the majority stake in Sandals Whitehouse), Montego Beach (1975) Limited (Club Jamaica) and Kingston Waterfront Hotel Limited (Oceana Hotel).

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