Eppley Caribbean Property Fund Limited SCC (ECPF), a publicly listed property fund in Barbados and Trinidad and Tobago, today announced that its Board of Directors had approved a cross-listing of its Value Fund shares on the Jamaica Stock Exchange (JSE) and a multibillion dollar secondary issue. The listing of all such shares will create the largest regionally focused real estate platform in the Caribbean.
ECPF first made the disclosure in a statement of material changes as required under regulatory guidelines in Barbados and Trinidad. According to Chairman of Eppley Caribbean Property Fund Nicholas Scott, the cross listing and capital raise is consistent with the company’s strategy to increase the size and scope of the Value Fund.
He said, “The JSE is the most active stock market in the Caribbean. We believe our existing investors will benefit greatly from the enhanced liquidity a cross-listing will create. Additionally, the cross-listing provides the opportunity for Jamaican investors to access a portfolio of high-quality, cash-flow producing commercial properties spread throughout the Caribbean in a liquid, low-cost and tax efficient form.”
ECPF intends to use the proceeds of the capital raise primarily to purchase a portfolio of properties in Jamaica and Barbados totalling over 240,000 square feet and to fund its wider regional acquisition pipeline. The offer of shares, the subject of the secondary issue, is expected to open on June 28, 2019 and close on July 12, 2019, provided that all required approvals from relevant authorities in Jamaica and Barbados are obtained and will facilitate the offer being made.
CEO, NCB Capital Markets Steven Gooden remarked, “We are pleased to be acting as the arranger for the Eppley Caribbean Property Fund’s landmark cross-listing on the JSE. The listing not only showcases the strength of our capital markets in Jamaica, but our capabilities throughout the region. We encourage our clients and all Jamaican investors to take advantage of this investment opportunity to own Caribbean commercial real estate in an accessible form.”
ECPF, formerly Fortress Caribbean Property Fund, has been around for nearly 20 years. In May 2018, Eppley Limited acquired control of the Company through its wholly owned subsidiary Eppley Fund Managers. Since that time, Eppley has dramatically improved the Fund’s performance. For the first six months of this financial year, the Value Fund’s net operating income funds from operations and earnings attributable to shareholders have all increased by at least 50 per cent.
Eppley Limited is a publicly listed company which invests in credit, mezzanine financing and real estate. Since being listed in 2013, Eppley Limited has delivered a cumulative average return to its shareholders of over 34 per cent and recently migrated from the Jamaica Stock Exchange’s Junior Market to the JSE’s Main Market.
NCB Capital Markets is acting as the arranger and broker for the transaction. Patterson Mair Hamilton and Clarke Gittens Farmer are acting as legal advisors to NCB Capital Markets and Eppley Caribbean Property Fund, respectively. (PR)