FJI is controlled by the Facey family through a 47% stake in Pan-Jamaican Investment Trust Limited (PanJam or the Group) which, in turn, owns 73% of FJI. The remaining shares of the company are owned by more than 1,500 shareholders. There are five institutional investors with more than 1% shareholding in the company – the largest being Scotia Jamaica Investment Management with a 4.2% stake. Both FJI and PanJam are listed on the Jamaica Stock Exchange.

IFC is proposing a corporate loan of $25 million to FJI to allow the company the flexibility to bid for and develop real estate projects as they materialize. The corporate loan may include a quasi equity component of up to $7.5 million.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity

* These investment figures are indicative

FJI intends to undertake real estate developments in Jamaica (primarily in Kingston) as well as other Caribbean countries and Central America.

The proposed project will help address the strong demand for modern middle income housing as well as develop and upgrade high quality commercial and retail space in Kingston. Consumers of these facilities will benefit from the expanded supply and high quality of office, retail and residential properties, while such real estate developments will also contribute to urban infrastructure improvements and community development around them. As a leading property developer and manager in Kingston, JPC will continue to set standards of modern property management and help further develop the related services in the country. In addition, increased development and investment by the company is expected to send a positive signal, encouraging other developments on the island, which has seen few developments over the last decade, creating a demonstration effect and contributing to the overall community development in Jamaica.

Non quantifiable development impacts include the benefits to the local economy from linkages with the construction and building supply sectors on the island. Once operational, these projects will stimulate use of local supplies of goods and services. In addition, local employment will be generated during and post construction. The company’s implementation of IFC’s environmental and safety standards will have a demonstration effect for other such investments in the country.

IFC has a role to play in supporting real estate investments in developing countries where developers have mainly been using construction financing as opposed to long-term financing, which is often scarce. As such, IFC’s provision of longer tenor funds is a better match for long-term cashflows of commercial property. For First Jamaica, IFC will provide:

Financial Additionality:

- Long term financing:

IFC’s financing will provide long-term financing and risk capital suitable for real estate investments not readily available in Jamaica. Available financing in Jamaica inhibits the ability of developers to undertake developments in a timely and efficient manner. IFC’s financing will allow the company to proceed with its developments as and when they materialize in a cost effective manner.

- Flexible financing:

IFC’s financing will provide flexibility to the company to identify and bid for suitable projects as and when they materialize and will allow the company to achieve scale efficiencies by bundling sub-projects.

Support for Potential South-South Investments:

IFC financing will enable the company to undertake projects outside of Jamaica, supporting a high quality developer in Jamaica extend its reach to the Caribbean and beyond as opportunities arise.

Non-Monetary Additionality:

Environment, health, safety and social oversight to meet local and World Banks standards.

This is a Category B project according to IFC''s Environmental and Social Review procedure because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Applicable Performance Standards (PS) are:

- PS1: Social and Environmental Assessment and Management System
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security
- PS5: Land Acquisition and Involuntary Resettlement,

Environmental and social review of the project included evaluation of environmental and social information presented by First Jamaica. In addition, IFC specialist performed a physical evaluation of the project operations. Key issues identified will be addressed as detailed in Environmental and Social Review Summary (ESRS) and in the Environmental and Social Action Plan (ESAP). Please refer to the IFC Environmental and Social Review Summary available at the World Bank Infoshop for additional information.