Sagicor Bank and First Rock in Real Estate Refinancing Move

First Rock Real Estate Investment Limited advised of its intention “to refinance the credit facility extended by Sagicor Bank Jamaica Limited surrounding the development of its Hambani Estate residential complex located at 1-3 Bamboo Avenue, Kingston 6.”

The Sagicor loan has reached maturity, and Saigicor has now assumed control of the remaining unsold lots. This raises a critical question: what is the future for the investors involved? Initially valued at an impressive $2 billion, the Hambani estate project may now be facing significant challenges. With the current interest rate environment and a noticeable slowdown in residential real estate, one must wonder if this valuation is still achievable. Recent market conditions indicate that the Jamaican real estate development sector may be on the brink of a substantial shift, as it has softened considerably over the past few months. The Hambani Project, which boasts 12 exquisite standalone villas, is currently 90% complete and holds a loan-to-value ratio of just 45%. Saigicor is on the line for a $10 million loan that First Rock Capital Holdings secured from Sagicor Bank Jamaica specifically for the Hambani Estates project. This financing accounted for 77% of the project’s estimated total cost of $13 million. As we assess these developments, it’s essential to understand the broader implications for investors and the potential impact on the market moving forward.