THE project to develop a commercial complex at the site of the old Liguanea Post Office is on target, and the facility should be ready for occupation soon.
Scheduled for completion this month, the project is on target and under budget, Burchell Whiteman, Leader of Government Business in the Senate, told a recent sitting of the Upper House. He said some of the owners of the offices have already started to occupy their spaces and the process of getting strata titles was underway.
In July 2002, the Postal Corporation of Jamaica Limited entered into a joint venture agreement with KES Development Company Limited for the development of the Liguanea property in St. Andrew into a commercial complex.
The developer agreed to a fixed price contract of $199,980,000 for the building of 45,000 square feet of commercial space, comprising individual units, with 8,000 square feet reserved for the post office.
LAND DONATED BY POST OFFICE
Land was provided by the post office, which was valued by the independent valuator at $42 million and the space reserved for the post office on the complex, represented the value of the investment.
The developer provided cash equity of $20 million and was responsible for providing total project financing as well as ensuring the sale of the commercial units.
It was agreed that the net profit from the development should be divided between the developer and the Postal Corporation, with the Corporation receiving 25 per cent or a quaranteed sum of $7 million, whichever is greater. The developer will bear any loss resulting from the development and the Postal Corporation has no obligation to settle any outstanding sums due to third parties.
TITLE ISSUES
Responding to a question from Opposition Senator, Bruce Golding, as to whether the title to the land had been transferred, and if liens have been incurred, Senator Whiteman said the title to the property was in the name of the Commissioner of Lands and there was no transfer of titles to the joint venture partner. On completion of the development, strata titles would be transferred to individual purchasers, he indicated.
Cabinet approved the joint venture agreement for the development in February 2002, with the intent of replicating the project in other areas if the agreement proved successful. Although Senator Whiteman could not say what other properties would be developed in similar fashion, he said the Minister with portfolio responsibility for post offices was satisfied with the outcome of the project and was continuing with the plan to invite private sector interest in similar developments elsewhere.
