Susan Gordon, Staff Reporter
Earl Samuels, managing director of the National Housing Trust. - Rudolph Brown/Chief Photographer
The National Housing Trust (NHT) has partnered with two private mortgage providers on a new company that will build houses for retired persons, taking what managing director Earl Samuels says is a minority 30 per cent stake.
NHT, Jamaica National Building Society, and Victoria Mutual Building Society have formed Lifestyle Villages of Jamaica, whose first project will be a 450-acre retirement village on the outskirts of Montego Bay.
Under the partnership arrangement, the state housing agency contributes land for the developments targeted by the partners, while the two building societies are responsible for getting the houses developed.
Attempts at comment from JNBS' Earl Jarrett and VMBS were unsuccessful, but Samuels told Wednesday Business that it was yet to be decided how the remaining 70 per cent would be shared among the two building societies.
Target market
Lifestyle Villages' target market is returning residents from the United Kingdom, United States, Canada and the Cayman Island, who, research shows, are in search of affordable homes, according to the housing agency boss.
"The market potential is very large," said Samuels. "We have been getting a lot of requests for NHT to assist these people."
Samuels said it was yet to be decided who would run the company, adding, however, that the board of directors would incorporate representatives from all the companies involved in the partnership.
"With this investment, we can create our loans above an average return on NHT investment portfolio. Our venture in this type of operation will no way affect our ability to grant investors loans. It won't be a cost to us," he said.
As at June, NHT's total asset stood at $80 billion reflecting a 1.5 per cent increase on the year prior's $78.73 billion, reflected in its 2005/06 annual report.
NHT has already acquired a 450-acre property at Barrett Hall, St. James, from Montego Bay tycoon, Joe Whitter and according to Mr. Samuels is in discussions to purchase two other properties located in Manchester and St. Ann.
Lifestyle Villages will begin selling units in 18-24 months, Mr. Samuels forecasts. The Barrett Hall development is awaiting an environmental impact study and the land use study for construction to begin.
The preliminary design includes 277 three- and four-bedroom estate villas on 157 acres of land, 103 five-bedroom townhouses to be built on 42 acres of land, another 12 acres to assisted-living residences for the elderly and housing for up to 100 nurses, community club houses, a golf course and a health clinic or hospital.
The design layout is subject to change. It was unclear how much funds each partner was investing in the venture, but Samuels said any money NHT puts in would come from the regular pool from which it draws to finance land purchases for other NHT schemes.
