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More assets for sale

FINSAC HAS to date sold $6.6 billion of the assets under its control, and is close to selling another $4.1 billion within the next six to nine months.

In order to expedite the divestment of a number of hotels under FINSAC's control, London-based real estate agents Christie and Company have been retained to market the properties worldwide.

In a Ministry Paper tabled in Parliament yesterday, Finance Minister Dr. Omar Davies, said the Boscobel Beach Hotel near the border of St. Mary and St. Ann has been placed into receivership because of its inability to service its debts. The Paper said the receiver was reviewing the hotel's operations with a view to determining if it should be restructured or sold as a going concern.

The Paper said Mutual Life's 33.3 per cent shares in Grand Lido, its 50 per cent shares in Hedonism II, and its shareholding in Trelawny Beach Hotel, would be sold to Village Resorts/SuperClubs, which matched the offers made by Guardian Life Insurance Company.

The offer price of US$9 million for the shares in Grand Lido, and US$12.25 million each for the shares of Hedonism II and Trelawny Beach Hotel have been accepted.

The individual life and pensions portfolios of Jamaica Mutual Life, Dyoll Life and Crown Eagle were sold to Guardian Life of Trinidad earlier this year, while the local insurance firm First Life acquired the group life and health portfolios of the three companies. Part of the agreement was that assets totalling $5.5 billion would be transferred to Guardian Life and First Life.

The Ministry Paper said Ciboney Hotel could not be sold at this time because of complex ownership and management structures and litigations. However, expressions of interest were still being received and it was hoped that court proceedings between Ciboney and its former directors will start in the Year 2000.

It said that Christie and Company have prepared information packages for distribution to investors interested in buying FINSAC's 49.4 per cent shareholding in the Jamaica Grande, as well as Crowne Plaza and Terra Nova Hotels.

According to the Ministry Paper, Devon House East and Skyline Drive, St. Andrew - two of the housing and commercial complexes acquired by FINSAC - as well as other residential properties have been sold. In addition, 34 of the 42 apartments in Renfrew Apartments off Trafalgar Road, St. Andrew, have been sold.

It said four residential apartments valued at $20 million have been transferred to Guardian Life as part of the agreement to take over the portfolio of Jamaica Mutual Life, and other properties will be transferred to both Guardian Life and First Life to provide backing for some of the liabilities represented by the portfolio.

 December 8, 1999

 

 

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