The company advised that it entered into an agreement to acquire a convention hotel in Orlando, Florida, which is affiliated with a “major” undisclosed hotel franchise.
“The acquisition is slated for completion in September 2015,” stated the release, adding that the acquisition is in keeping with its investment strategy to seek out real estate investment opportunities outside of Jamaica.
If successful, the move will help the company to diversify its risk outside of Jamaica.
The Business Observer sent messages to management but received no response on details of the acquisition up to press time.
The company proposes to finance the acquisition by debt and equity and to this end, its board of directors will convene a meeting on August 3rd 2015, to consider, inter alia, a non-renounceable rights issue to raise the additional equity required.
The X Fund made $569.7 million net profit on revenues of $1.5 billion for its March first-quarter 2015 or 135 per cent higher profit than a year earlier, financials indicate. The X Fund is 69.5 per cent owned by Sagicor Pooled Pension Investment Funds which are administered by Sagicor Life Jamaica Ltd.
The company described its outlook as positive, indicating that it continues to seek viable investments in tourism and commercial real estate.
“As world tourism rebounds, the Jamaican market has done well and we expect it to continue doing so for the remainder of 2015. Our latest acquisition of the 489-room Hilton Rose Hall Resort and Spa in January 2015 reflects our continued commitment to Jamaica and to creating value for X Fund shareholders. The construction of the Jewel Lagoon Water Park at Jewel Runaway Bay, as well
as full availability of rooms at that location following refurbishing of 50 per cent of room blocks in 2014, will also position X Fund for increased value to shareholders,” stated the report to stockholders for financials as at March 2015.