A model of the Barbican Business Centre which should be completed by November 2010.

Barbican Estates Limited (BEL), a nascent company, has chosen as its first venture the development of new commercial space in the busy and often congested Barbican Square, where commerce, on the face, of it is thriving.

On a 1.13-acre property, Barbican Estates will, within weeks, begin construction of office and warehouse space in a complex to be known as Barbican Business Centre.

BEL director Robert Clivio said the development is a $350-million project that the company hopes to complete by November 2010.

"This type of development is aimed at bringing back into Barbican people now going to the downtown and New Kingston areas," said Clivio.

"We are looking to break ground within the next two weeks. We have cleared the site, done the prep work, with just the physical construction left to be started."

30 years in construction

Clivio, a former managing director of the Matalon-controlled West Indies Home Contractors Limited, says he has been in the construction business for more than 30 years.

He acknowledged what he described as the significant physical effect other developments such as the Loshusan's shopping centre and Azmart retail store have already had on the area, which, except for the Hi-Lo supermarket, was previously dotted mainly with fruit stalls, bars and other small shops targeting low-income residents who live on the fringes of the growing commercial centre.

The business centre is designed to bring another dimension to the uptown commercial hub that Barbican Square has become, with 31 units of office and warehouse space, ranging in size from 550 square feet to 1,300 square feet, being sold for between $7.9 million and $17 million each.

Clivio told the Financial Gleaner that having been in the market for the last four to six weeks working on getting the units sold, agreements have now been signed for 12, with expressions of interest received for the other 19 units on sale.

"There is some level of commitment for all the 31 units, some kind of indicative interest. We have been doing very well and I don't think there is an issue in selling off the project," said Clivio.

The property is being marketed by realtors Valerie Levy and Associates.

"Developers have not been focusing on commercial development, but on the residential market, for the last many years because ofthe high yield. However, we have ample inventory for that target (residential) market now," listing agent Anya Levy said.

She added that the current economic climate made the business centre project attractive.

"With many people now re-thinking their game plan and shifting from larger to smaller space, given the economic conditions, we have had a flood of calls," she said.

Clivio said the development is being financed by a mix of funds, including the company's own capital, deposits from purchasers and loans from local financial institutions.

While Clivio declined to give details about the firm, he said it was acquired from the original owners, whom he did not name.

The company has been around since at least November 2005, with Companies Office of Jamaica records then naming Annette Burrowes, Michael Fraser and Paulette Fraser as directors and shareholders.

Financial Gleaner checks showed that the business centre project has been listed with the Real Estate Board of Jamaica since October 2008 as an incomplete commercial development with a July 2009 estimated completion date.

sabrina.gordon@gleanerjm.com