JMMB Real Estate Holdings Limited, the property development subsidiary of JMMB Group, has announced a significant milestone, achieving profitability and outlining plans for two substantial commercial developments in Kingston, Jamaica. This strategic push into the non-financial sector marks a new phase of growth for the company, underscoring its commitment to value creation and disciplined capital allocation. The positive financial performance and forward-looking development pipeline signal a robust outlook for JMMB’s real estate ventures.
Profitability and Strategic Shift
JMMB Real Estate Holdings Limited reported a net profit of $332 million for the 2024/25 financial year. During this period, the company contributed $760 million to the JMMB Group through rental earnings, property sales, and revaluation gains. Furthermore, it distributed $200 million in dividends, solidifying its position as a self-sustaining and independent business operation, no longer requiring subsidies from the JMMB Group or its shareholders. Group CEO Keith Duncan highlighted that the real estate arm has successfully built a standalone, self-sufficient operation. This achievement reflects a broader strategy by JMMB Group to diversify its revenue streams and leverage opportunities in the property market, moving beyond traditional financial services.
Ambitious New Developments
The company is moving forward with two key commercial developments in Kingston. The first project involves the renovation and expansion of 35,000 square feet of office space on Harbour Street in downtown Kingston. This initiative is part of an urban renewal effort aimed at revitalizing the area. The second project is a significant 10-storey building planned for Haughton Avenue in New Kingston, which will offer 45,000 square feet of modern office space along with parking facilities. Notably, the Haughton Avenue site currently houses JMMB’s head office, JMMB Bank, and JMMB Investments.
Project Timelines and Financial Targets
Both the Harbour Street and Haughton Avenue projects are currently in the tender phase, with contractors being procured. Construction for both developments is slated to begin in the fourth quarter of the 2025/26 financial year. The Harbour Street renovation is expected to take between 18 to 20 months to complete, while the Haughton Avenue building is projected to require 22 to 24 months. JMMB has set an ambitious profit hurdle rate of 15% for each of these developments. This benchmark demonstrates a strategic focus on projects with clear, market-driven returns rather than relying solely on asset appreciation. The company’s approach aligns with its broader emphasis on value creation through disciplined capital deployment.
Strategic Context and Future Outlook
These new developments are part of JMMB’s strategy to monetize its estimated $4-billion land bank through high-value commercial real estate ventures. The company has previously demonstrated success with its first completed project at 102 Hope Road and 1 Liguanea Avenue, a four-storey complex featuring JMMB’s digital branch on the ground floor and leased upper levels to external tenants. This project served as a proof of concept for their build-and-sell model. The expansion into commercial real estate aligns with Jamaica’s national development plans and Vision 2030, addressing the growing demand for modern office spaces and supporting economic infrastructure. JMMB Group is looking to capitalize on growth opportunities within the commercial real estate market, including targeting warehousing and business process outsourcing (BPO) projects over the next few years. The company also has design work underway for properties in Montego Bay and Mandeville, further expanding its property portfolio. JMMB’s real estate business line is expected to continue delivering value and contributing to the group’s diversified revenue streams in Jamaica and the wider Caribbean.