Sygnus Real Estate Finance (SRF) has announced the successful sale of two investment properties from its portfolio.
The properties, located at 56 and 58 Lady Musgrave Road, were sold at attractive valuations, reflecting the company’s strategic focus on maximizing returns for its shareholders, SRF said in a release.
The proceeds from the sale will support the company’s second investment life cycle.
“We are pleased that we were able to unlock value for shareholders from 56 and 58 Lady Musgrave Road investment properties and generate an attractive rate of return,” said Jason Morris, Executive Vice President and Chief Investment Officer at Sygnus Group.
SRF shareholders in March approved the special resolution to convert a $377.91-million performance fee owed to Sygnus Capital into SRF ordinary shares. The resolution led to the conversion of the fee into 20,707,342 ordinary shares at $18.25 per share.
Shareholders will receive warrants at a future date, granting them the option to buy new SRF shares at J$18.25/US$0.12. These warrants will be allocated at a ratio of one warrant for every 15 ordinary shares and will remain exercisable for two years following the issuance of Sygnus Capital’s new shares.
“This is consistent with the strategy outlined at our annual general meeting of completing SRF’s first investment cycle. The successful exits via sale underscore our commitment to unlocking value in real estate and transitioning into the second investment cycle,” Morris said in the release this week.
Morris had previously indicated that the company is seeking to optimise its real estate investments, which may initially lead to a slight decrease in property and investment note values before seeing substantial growth.
He also disclosed that the company would ramp up capital deployment through joint ventures with real estate owners across Jamaica and the wider Caribbean.
For the three months ended February, SRF’s net investment income was negative $113 million, but improved compared to the negative $124 million in the period ending February 2023. Over six months, net investment income was also negative at $228 million, marking a deterioration in performance relative to negative $206 million of investment income in the year-prior period.
Net investment income incorporates interest income, leases and other income, and is net of interest expense and operating expenses.
