The ultra-exclusive Hambani luxury complex, sporting the most expensive known residential units listed at the equivalent of about $310 million per unit, at today’s conversion rate, is more than a year behind schedule, and some of the apartments are yet to be sold.
Hambani is a US$13-million project that was rolled out by First Rock Real Estate Investments Limited two years ago. The units were priced at US$1.8 million and US$2 million, and the project should have been completed by April 2022.
But now, Executive Chairman of First Rock Group Ryan Reid says the units that already have buyers will be delivered within the third quarter, that is, by the end of September.
He partly blamed the coronavirus pandemic for the delay, amid curfews and restrictions on economic activity.
“Bear in mind that we commenced Hambani in the middle of COVID. That would have come with restrictions relating to work hours and human resources. Added to that were the supply chain issues,” Reid told the Financial Gleaner. However, he added that the project itself remains within its original US$13-million budget, which is the equivalent of about $2 billion in local currency.
Sited in Liguanea, Kingston, Hambani Estates features 12 units – seven five-bedroom residences spanning two storeys, and five four-bedroom residences on three storeys. Garco Construction was hired as building contractors, and the units are being marketed by Coldwell Banker, Century 21 and First Rock Realty.
Some investors, who made deposits on units, were said to be disgruntled by the delay, but Reid noted that for the seven residences already contracted for sale, the buyers had not, in the main, asked for their money back.
“No one has indicated that they want to exit, save and except for a replacement purchaser some time ago. That matter is in the process of being settled,” Reid said.
He added that the handover of the seven units would begin in six weeks or so.
The dozen units at the Hambani complex are all stand-alone houses.
As to the five that are unsold, Reid said the company made a decision not to market those properties, right away.
They were never placed on the market, he told the Financial Gleaner, but noted however that they will eventually be sold at the right time.
“We took the deliberate decision not to offer those units for sale. When the project is finished and the handing-over process starts we will put up those units for sale at prevailing rates,” Reid said.
Last week, the FirstRock Group chairman had told shareholders at the company’s annual general meeting that First Rock Real Estate had opted to hold back some Hambani units from the market, so that the company could benefit from future prices.
Otherwise, in an update on the company’s high-rise residential development known as Bonne Chance, Reid said construction is scheduled to begin in September.
The Real Estate Board has approved the development, which will allow First Rock to start marketing the units and issuing sales contracts, he added. Expectations are, all units will be sold by the end of summer, he said.
“Effectively, we have over 50 per cent of those units under reservations already, with in excess of 300 enquiries for the development,” Reid reported to shareholders of First Rock Real Estate last week.
Bonne Chance will be built at a cost of $1.95 billion with bank financing. The 10-storey high-rise will encompass 43 residences.
“We’ve narrowed down our financing options to two institutions and we’ll be taking that to the board in short order for a decision,” he said.
First Group Vice-President for Finance & Planning, Shaun Myers, commented that interest rates are generally between seven and 8.5 per cent, a range he described as bearable, but only just.
“At those levels, projects are still very much viable. We really do hope, however, that rates don’t go too much beyond that into double-digit territory, because that would present a challenge,” Myers told shareholders.