Sunset Joint Venture
Location: Sunset Crest St. James, Barbados
Property Type: Commercial Building

The Fund has invested $936,000 for 24% of the equity in a new joint venture called the Sunset Joint Venture, set up with the CS&C partners to acquire a mall in Sunset Crest, St. James. A letter of intent has been signed with Duty Free Caribbean for the lease of the mall for 10 years. This adds an additional revenue generating asset to the Fund’s portfolio.

Carter’s Buildings and Land, Cave Shepherd Building
Location: various
Cost: $60.4 million – entire joint venture (2005 and 2006)

The Fund holds 24% interest in The CS&C Joint Venture, a real estate partnership, which owns land and buildings at five locations in Barbados. These properties were previously owned by Carter Holdings Limited and Cave Shepherd & Co. Limited. The properties represent a diversified portfolio of real estate which includes approximately 24 acres of land and 250,000 square feet of retail, office and warehouse space.

The properties have been valued at $67.9 million, resulting in fair value gains of $2.2 million. During the year ended September 2008, the Fund earned $1.3 million in gross rental income and recognised $528,000 in fair value gains, resulting in $1.2 million 0f profit from our share of the joint venture.

Carlisle House
Location: Bridgetown, Barbados
Cost: $8.6m (1999)
Tenantable Space: 48,426 square feet
Property Type - Commercial

During the year gross rents increased from $1.6 million to $1.8 million. Net property income decreased to $740,000 from $845,000 in 2007.

Carlisle House achieved an actual occupancy of over 95% during the year and at present less than 2,000 sq ft remain vacant although one major tenant is relocating soon.

The building continues to be maintained to the highest standard and during the year the building was repainted and the common area tiles were also replaced. No additional amounts were spent on improvements during the year. The valuers have increased their valuation to $12.3 million giving rise to $50,000 (2007 - $29,000) in fair value gains in 2008.

No. 24 Broad Street
Location: Bridgetown, Barbados
Cost: $5.5m (1999)
Tenantable Space: 14,000 square feet
Property Type: Commercial

No 24 Broad Street is in the centre of Bridgetown. It encompasses 14,000 square feet of office and retail space. The building is leased on a triple net lease for five years ending August 2009 to Duty Free Caribbean who sublets the ground floor to Colombian Emeralds International. The lease payments are incremented at 3% per annum.

The valuers have increased their valuation to $8.2 million resulting in fair value gains of $200,000.

Chattel Village
Location: Holetown, Barbados
Cost: $1.55m (1999)
Tenantable Space: 8,000 square feet
Property Type: Commercial

The Chattel Village remains one of the Fund's most visible and attractive assets. Located in the heart of Holetown on the West Coast it is highly in demand by prospective tenants and remains fully tenanted.

The gross rental income has increased to $465,000 from $430,000 as the property was fully occupied for the year. As with the previous year, the value has been decreased by $15,000 (2007 - $45,000) to $1.46 million.

CWBET Building
Location: Wildey, Barbados
Cost: $28.1 million
Tenantable Space: 84,838 square feet
Property Type: Commercial property

The Fund owns a 57% share in The BET Joint Venture that owns this property. Cable & Wireless has leased back the building for a fifteen year term, ending in October 2017, with annual rental increments of 5%. Under International Financial Reporting Standards, this joint venture investment is consolidated in the Fund's financial statements, and therefore the investment property and the bank loan are included at full value. The National Insurance Board and Sagicor Life Inc. interests are shown as minority interests.

During the twelve months ended September 30, 2008, The BET Joint Venture earned $4.1 million in gross rental income and the valuers have revalued the building at $37.1 million resulting in fair value gains of $800,000. The joint venture has made a profit after interest of $4.2 million compared to $3.8 million in 2007. This represents a return on equity of 42% in this financial year, including fair value gains. The building is being well maintaied by the tenant and the partners continue to look at optimising it for future use after the lease has ended. The Board is reviewing redevelopment opportunities for the site after the lease ends.