Joy Douglas, general manager of the Urban Development Corporation, says the Caymanas housing plan is a $51.5-billion plan for now. - File

The state-run Urban Development Corporation (UDC), which is leading a comprehensive plan to redevelop the expansive Caymanas Estate lands, says it is gearing up to raise as much as J$51 billion to convert 1,240 acres into housing.

The new homes will range from low-income units to mansions priced at J$40 million to J$50 million, targeted at the wealthy and returning residents.

The super housing project is still only in the planning stages, according to the UDC's general manager, Joy Douglas, and the $51.5 billion cost quoted, she said, was for now an indicative cost.

The UDC has given no timeline for implementation, but the project is part of the wider plans for Caymanas Estate, whose 10,703 acres was at one time almost fully under sugar cane.

The housing project, though huge, is small in comparison to the US$2.5 billion (J223 billion) 1,000-acre warehousing and light industrial Commercial Free Zone that financiers are now hunting through Asia and elsewhere for financing to launch.

The UDC has been tasked by the Government with developing the thousands of acres which sits on the border of Kingston and St Catherine.

The development agency says it will be banking on a mix of financing to get the housing project off the ground.

"This is a very large project and we will be seeking to execute it through various arrangements, including joint ventures. We will also, through the power of the UDC, divest to other entities. We will also seek to raise financing, so it is a mix of approaches which will be applied," Douglas told Wednesday Business this week.

According to the UDC official, the construction of the highly diversified communities is not contingent on the development of the planned US$2.5 billion Caymanas Economic Zone, but related more closely to the provision of recreational facilities, including a major golf club.

"The original Caymanas development is really focused on the recreational element, and this why the UDC acquired the property two decades ago. The enterprise zone is simply a further enhancement."

In its big housing plan, the UDC has earmarked 751 acres for a highland cluster of 300 stand-alone houses offering a panoramic view of surrounding parishes.

An upscale lowland plantation-style housing estate of 400 units is also on the cards.

The pricey homes in the UDC plan are not typical of the parish and would bring a conspicuous residential opulence to an area dotted in the main with low- and middle-income housing.

With the current slowdown in the property market affecting mainly high-end residential holdings, Douglas is acknowledging that the upscale units, in her words, "may go a little slower than anticipated in the short term."

She said at the time when the plans were developed the real estate outlook was more favourable. And from all indications, the current recession has not dampened the UDC enthusiasm.

Recession

"The recession will probably affect the phasing of the development but we have no doubt that before long the world economy will recover. The general view is that within two years we should see recovery of the higher end market."

Targeted home buyers include retired Jamaicans returning home from abroad.

"This development is targeted at returning residents. Our people still want to come home and in terms of the power of their currency, they will also have significant purchasing power. The quality of this development will be very attractive to returnees."

The opulent highland homes with a minimum price of $50 million are expected to be accompanied by amenities such as courts for tennis and squash, swimming pools, golf course and fitness centres.

The lowland plantation homes, said Douglas, will also be built around the golf course and owners will be required to contribute to its maintenance. These $40 million mansions are also slated to have equestrian facilities, including a polo club and stud farm.

In another category, the UDC says its is looking to rake in several billions of dollars from 1,500 mixed-income houses expected to fetch between J$10 million and J$30 million each.

An additional 1,600 low-income units are planned for an area described by the UDC official as "The Village". These are expected to be sold for between J$7 million and J$10 million.

Residential zones

The plan is for these residential zones to be served by their own business district with supermarkets, specialist groceries, pharmacy, restaurants, doctors' offices, health centre, banks, barber and hairdresser salons, early childhood institutions, police station, library, church and town hall.

avia.collinder@gleanerjm.com

Indicative cost for Caymanas housing projects

Highland	300 units	$10.5b
Antibellum	400 units	$11.2b
Mixed Income	1,500 units	$21b
Village	1,600 units	$8.8b
Total	3,800 units	$51.5b More Business Print this Page E-mail the Editor   More Articles from Business HBO Latin America gunning for 'pirates' - Files complaint against Flow, Logic One, Telstar Pegasus bid deadline extended - Adviser mum on level of buyer interest LIME, Claro in 'cross-rate' agreement to cut charges IMF the only option, says Seaga - Deficit climbs to $52b Rum money running out - EU programme to end despite rum-makers plea Stanford still hospitalised - Court documents offer new details of scheme Brazil given OK to sanction US in cotton row - But denied US$2.5b compensation EU countries to phase out standard light bulbs Impressing with a good objective statement   Site comments powered by Disqus     © Copyright 1997-2009 Gleaner Company Ltd. Contact Us | Privacy Policy | Disclaimer | Letters to the Editor | Suggestions | Add our RSS feed | Follow Us on Twitter