Hua Lien International (Holding), the parent company of Pan-Caribbean Sugar, has sold landholdings at Bernard Lodge Sugar Factory in St Catherine to AYD Construction Limited.

In a filing shared on the Hong Kong Exchanges Limited’s website on Tuesday (March 11), Hua Lien International said it had entered into a sale and purchase agreement to dispose of the 18.079-hectare property in Jamaica for about HK$20.2 million (US$2.55 million). The property, was assessed as having no commercial value.

“The group stands to make a gain of HK$19.1 million from the disposal. The net proceeds from the property sale are expected to be nearly HK$19.4 million and are intended to be used for the group’s general working capital,” a release outlined.

AYD active in Jamaica’s construction sector

AYD Construction Limited has been engaged in construction activities in Jamaica since 2014 and was involved in the execution of public and private sector development projects.

These include building bridges for the North-South Highway, construction of Kingston Wharves Limited Total Logistics Facility, Palmyra Luxury Beach Condo Hotel, New Kingston Business Center, One Belmont, and Fosrich’s new warehouse.

Co-owner of AYD Construction Chris Zhu (Zhu Qingsong) told Our Today that the deal was struck on Monday, and AYD plans to finalise payment and transfer of the property this week. When asked about his intentions for the Bernard Lodge property, he further revealed the goal of building a factory and warehouse there.

Finer details of the deal

According to the Hong Kong Exchanges filing, “Bernard Lodge Sugar Factory is deserted and sits on the three parcels of land. Bernard Lodge Sugar Factory had ceased production for many years and was in
derelict stage before its acquisition by the group in 2013. It was assessed as fully depreciated with no commercial value by an independent professionally qualified property valuer in Jamaica. All structures on the three parcels of land will transfer under the Disposal at no additional consideration.”

AYD Construction will pay for the property in three instalments, the first of which is due upon execution of the sale and purchase agreement. That payment, amounting to US$1.3 million, will serve as a deposit.

The second instalment of US$1 million and the third instalment of US$250,000 should be paid in the next 60 days and 90 days, respectively.

The filing further revealed that the carrying value for the property up to June 2024 was HK$7,000 or US$900.

The document also outlined Hua Lien International’s reason for disposing of the property.

“Driven by the governmental development plan to develop the Bernard Lodge region where the
property is located, which created this disposal opportunity, the directors believe that the disposal
represents a valuable opportunity for the company to realise the value of the property at a favourable
price and the proceeds from the disposal may improve the financial position of the group and
provide additional general working capital to the group,” it said.