Development Bank of Jamaica

The Development Bank of Jamaica (DBJ) today announced that Scotia DBG Investments Limited has been named the Lead Broker and Advisor for the sale of the National Hotels & Properties Limited’s (NHP) 59.81% stake in the Pegasus Hotels of Jamaica Limited (PHJL). The NHP is a wholly owned subsidiary of the Urban Development Corporation (UDC).

As Lead Broker and Advisor, Scotia DBG Investments Limited will be responsible for providing brokerage and advisory services relating to the identification of the most appropriate time and method of disposing of the shares.

The DBJ, as Secretariat to the UDC divestment Enterprise Team, is overseeing the sale of the shares in PHJL. Representatives of the Office of the Contractor General and the Attorney General’s Chambers provide guidance to the Enterprise Team.

In early 2008, the Minister with responsibility for the UDC mandated the agency to return to its core functions as established under the UDC Act of 1968 (that is, to carry on the business of planning and development of designated areas in various parts of Jamaica). In compliance with this mandate, the agency was required to, among other things, divest itself of non-core assets, the proceeds of which would be used to finance its operations on an ongoing basis.

In March 2008, the UDC established a partnership with the DBJ whereby it was agreed that the Bank would: (a) become the Investment Banker for the UDC; (b) as part of its mandate, divest certain non-core assets of the UDC; and (c) hold the said assets as security for any loans made by the Bank to the UDC.

Since then, the DBJ has extended to the UDC a $1-billion loan “to finance the development of regional and area plans; infrastructure projects; buildings upgrade/generator; purchase of fixed assets; capital works for rented buildings”, and is also in the process of divesting the UDC-owned property known as Rooms on the Beach located in Ocho Rios, St. Ann.

In divesting the shares in PHJL, the DBJ invited bids from broker-members of the Jamaica Stock Exchange to submit proposals aimed at, among other things, providing lead brokerage services. The proposals received were evaluated and Scotia DBG Investments Limited was identified as the suitable broker to provide the services.

It is envisaged that the sale of shares will be completed by the first quarter of the 2009-10 financial year.

December 18, 2008

Contact : Claudette White, PR & Communication Officer, DBJ