Jamaican REIT IPO Flops

Carlton Savannah, Jamaica’s first REIT raised just JMD400m ($5.6m) in its IPO, falling well short of its proposed target of $17.3m equivalent . The company sold 68m shares at JMD5.91 , plac ing them privately, pending approval for a listing on the Jamaican Stock Exchange. With proceeds, the company will buy only seven apartment units at the Carlton Savannah complex in Trinidad instead of the originally targeted 16. The company expects to pay its shareholders with rent income from the properties in Trinidad. The IPO was launched May 19 and its closing was postponed twice. The company is still in talks with some investors to discuss the possibility of raising more cash to buy the remaining apartments and a spa, says Leo William, executive director of Willinvestja.com, a broker working on the deal. Jamaica’s NCB Capital led the transaction.