Fac­to­ries Cor­po­ra­tion ex­pan­sion projects to cost $20 bil­lion

Jamaica Gleaner - - BUSINESS - Avia Collinder Busi­ness Re­porter avia.collinder@glean­erjm.com

THE DE­MAND for fac­tory space has nearly dou­bled in less than two years, mainly from busi­nesses seek­ing agro-pro­cess­ing, busi­ness process out­sourc­ing, man­u­fac­tur­ing and ware­hous­ing space.

Fac­to­ries Cor­po­ra­tion of Ja­maica is now plan­ning to add 132,075 square me­tres of space to fill de­mand es­ti­mated to year 2022, ac­cord­ing to client ser­vices man­ager Sharon Phillips, who said it would take pro­jected in­vest­ments of $20 bil­lion.

“We have seen de­mand mov­ing from 66 per cent to 88 per cent for our small in­dus­trial and com­mer­cial com­plexes. We ex­pect oc­cu­pancy over­all to move from 87 per cent to 94 per cent be­fore year end,” Phillips said.

Be­tween Jan­uary and Au­gust, the FCJ leased 93,642 square me­tres of space to new clients. For all of 2016, the agency leased 123,847 square me­tres. One square me­tre is the equiv­a­lent of 10.76 square feet.

The client ser­vices man­ager said that while the up­swing in de­mand has al­lowed the cor­po­ra­tion to put its cur­rent build­ings into op­er­a­tion, it would need more space in three to five years to keep up with the needs of busi­nesses.

PLANNED EX­PAN­SIONS

The planned ex­pan­sions in­clude 750,000 square feet of space at the Naggo Head Tech­nol­ogy Park, in Port­more, St Cather­ine; 365,000 square feet of space at the Mo­rant Bay Ur­ban Cen­tre in St Thomas and 300,000 square feet of space as part of the rede­vel­op­ment of the Garmex Free­zone and In­dus­trial Com­plex in Kingston – all costed at $20.2 bil­lion.

More­over, Phillips added, the “FCJ is now ag­gres­sively look­ing to utilise some of its ex­ist­ing prop­er­ties with green spa­ces to build out to meet the de­mand.”

Its fi­nanc­ing strate­gies in­clude the pos­si­bil­ity of joint ven­ture part­ner­ships with some of its clients to meet their de­mands for space, she said, as well as other pub­lic-pri­vate part­ner­ships.

The FCJ has 157,019.29 square me­tres in its port­fo­lio of prop­er­ties, some 19,602.36 square me­tres or 12 per cent of which is avail­able for rental. Cur­rently, space is avail­able in Kingston, St James, Claren­don and Hanover, Phillips said.

The agency is cur­rently in ne­go­ti­a­tion for rental of 6,505.58 square me­tres of the avail­able space, a trans­ac­tion it ex­pects to wrap up “within the next two months,” the man­ager said.

FCJ rental rates vary from lo­ca­tion to lo­ca­tion, but ranges from $90 to $622 per square me­tre per an­num. The agency also charges a main­te­nance fee rang­ing from $12.08 to $381.09 per square me­tre per an­num.

FCJ is now ag­gres­sively look­ing to utilise some of its ex­ist­ing prop­er­ties with green spa­ces to build out to meet the de­mand.

Newspapers in English

Newspapers from Jamaica

© PressReader. All rights reserved.