- RUDOLPH BROWN/CHIEF PHOTOGRAPHER
Nearing completion: The upmarket 60-unit apartment complex, Winchester Estate, with entrances on Strathairn Avenue and Winchester Road, which is being developed by Life of Jamaica (LoJ). Based on the success of the development, LoJ is now in the process of constructing a second similar gated community on premises next door to Winchester Estate.
Ashford W. Meikle, Staff Reporter
INSURANCE AND financial conglo-merate, Life of Jamaica (LoJ), is planning to construct a second residential development, following on its successful development of the gated 60-unit apartment complex, Winchester Estate on Winchester Road, a stone's throw from the Half-Way Tree transportation hub.
LoJ's vice president for Investments, Rohan Miller, told Sunday Business last week that the company was negotiating to buy the half-acre property, which currently houses the Suthermere Preparatory School at 6 Strathairn Avenue, off Ruthven Road. In fact, the premises border the Strathairn Avenue entrance of Winchester Estate.
AN ADDITIONAL BLOCK
"Yes ... we are in the process of acquiring the land," Miller said. "It is our plan to put up an additional block, similar in concept to Winchester Estate. But, in reality, it will be a different complex." Miller, while he declined to give details about the proposed development, revealed that it could materialise in about two years.
"The sale will probably take another three months, while the planning process will take another six to twelve months, construction will take place another six to twelve months. So, you are looking at anywhere between 18 to 24 months before it will be completed. Given what we have experienced so far our expectations is that the process will be slightly shorter than the current development."
Miller admitted that the success of the Winchester influenced LOJ's decision to acquire the land for another residential development.
"We want to be at a level in the marketplace where people can afford to buy our homes, which is the middle market. We not really trying to be at the top-end of the market or the low-end of the market because we believe that there are quite a number of developments being done for those segments."
Last year, LoJ began a massive construction on the four acres of land it bought from Jamaica Broilers Group about three years ago for US$3 million.
COMMERCIAL DEVELOPMENT
Phase one of the development, Winchester Estate, consists of a mix of 20 studios, 30 one bedroom and 10 penthouse apartments, and is slated to be completed next month. The commercial development, the second phase, will be the Winchester Business Centre, with some 48 small, medium and large units designed to accommodate professional suites, light retail, commercial and warehousing business entities.
That development marked the insurance company's first major venture into the real estate market since the FINSAC meltdown of the 1990s when the company had to shed a huge portion of its real estate portfolio owing to a illiquid balance sheet.
However, unlike the FINSAC years, LoJ is now more interested in developing rather than holding properties as it seeks growth to its revenue base, a point the president and CEO, Richard Byles, has made in the past.
"In a low interest rate environment investment managers must find creative ways of generating attractive returns," he told shareholders at last year's annual general meeting.
But these are not the only projects LOJ has in the pipeline. A couple weeks ago The Gleaner reported that the company would be constructing 80-90 two and three bedroom semi-detached houses at Llandovery in St. Ann. The company bought that land from the Jamaican Redevelopment Foundation for US$1.6 million.
Concerning the proposed development on Strathairn Avenue, Miller said, "Once we have finished the Winchester project, we are going to review it, see where we can make changes to make it even more beneficial for the buyer. For example, in terms of the layout, using energy savings device such as solar water heaters. We want to look at those things to see where we can reduce the maintenance costs."
