Fayval Williams, director of Carlton Savannah REIT, says the company wants to diversify into apartments and other types of real estate investment. - File

Jamaica first and only real-estate investment trust, Carlton Savannah REIT Jamaica Limited has opted for a name change months into its start-up, and now wants to be known as Kingston Properties Limited.

The change is pending approval from shareholders.

Director Fayval Williams said the name change reflected plans for the company to build out a more diversified portfolio of real estate investments.

CSREIT is currently invested in the Carlton Savannah Hotel under construction in Trinidad. The company, through a public offering raised $407 million to help finance purchase of seven apartment units in the hotel.

WAITING FOR APPROVAL

The units are costing $284 million to develop.

The change of strategy would allow the company to seek other investments, whether regionally or internationally, instead of having it tied to just the one property, Williams said.

"We have circulated a resolution to all shareholders for approval of the name change," she told the Financial Gleaner.

"We expect over the next month to be getting the yes or no responses."

Value for shareholders

Plans for the name change were disclosed in the company's first earnings report published this week.

The Carlton Savannah Hotel, a luxury hotel being constructed in Port-of-Spain, is now scheduled for completion and handover by March 2009 following setbacks from the anticipated opening date of October 2008.

"By adding to the portfolio, we see this as a way to accelerate value for shareholders," said Williams.

"We think shareholders will be happy about this as it will foster more growth, and enhance dividend capability greatly."

In the five-month period ending September, the company reported assets of $410.1 million, and revenue of $23.5 million.

Mum about growth

Williams refused to disclose growth projections or anticipated revenue stream, as well as the number of properties that the company would look to add to the portfolio.

"I can't release any projections, but we do have assumptions of how we will grow annually," she said.

But at the time of IPO, CREIT had projected revenue of US$1.61 million in the first year of operation, increasing to US$1.69 million in the fiscal year 2010-11.