Advertisment

Jamaican Teas Limited Exits Real Estate Amid Market Challenges

Jamaican Teas Limited exits the real estate sector due to slow sales and construction delays. It plans to focus on core businesses and expects improved financial results in 2024.

author-image
Shivani Chauhan
New Update
Jamaican Teas Limited Exits Real Estate Amid Market Challenges

In a significant shift of strategy, Jamaican Teas Limited is departing from the real estate development sector, driven by a combination of a softening market, slow sales, and construction delays. The decision comes to light after the company's September 2023 audited year-end financial results, announced by CEO John Mahfood.

Advertisment

Slow Sales and Construction Delays

The company's decision to exit the sector was particularly influenced by the challenges experienced with its Belvedere development in St Andrew. The 30-unit project, internally financed to the tune of $800 million, has seen lacklustre sales with only nine units sold. The rising mortgage rates have significantly dampened buyer interest.

Recouping the Investment

Advertisment

In a move to recoup the investment, Jamaican Teas plans to sell properties on Harbour Street in downtown Kingston, a venture expected to generate $200 million. The company's realignment will see a renewed focus on its core businesses, such as the expanding factory, the investment arm QWI, and its supermarket operations.

Revenue Growth and Future Outlook

Despite the decline in stock market performance that affected QWI Investments Limited and Jamaican Teas, the group managed to register a nine percent growth in annual revenue, reaching a record $2.7 billion. The company foresees improved financial results in 2024, underpinned by investments in new equipment to meet the growing demand. Further, it plans to consolidate operations at a new location in Temple Hall, St Andrew, a move anticipated to generate savings and increase production efficiency.

Advertisment
Advertisment