HAVING broken ground to commence construction for the first phase of its Pulse Homes project, lifestyle and real estate company Pulse Investment Limited is considering the use of a single or mixed strategy approach to finance the next phase of the 30-unit development.

The first 15 units comprising two- and three-bedroom, eco-friendly, low-density houses, to be built in the Villa Ronai Valley, is already financed from $1.1 billion in bond funding arranged by Barita Investments Limited last year.

Following a ground-breaking ceremony and an official opening of its multifaceted lifestyle village packaged together on a $6-billion price tag, Pulse’s Chairman Kingsley Cooper on Wednesday said that while plans were not yet finalised, the company was moving with alacrity to bring the second phase or next 15 units on stream as soon as the current phase gets off the ground. The first phase is scheduled for completion in 2024 and the company advised that those units are already sold out.

“We have about three options on the table which we are looking at to finance the second phase which could see a combination of either another bond, an equity raise or the use of purchaser’s funds. Factoring the rising cost of key construction inputs, this could see us requiring over $1.5 billion in new financing to commence that aspect,” he told the Jamaica Observer.

“We have done our debt bit, so now we are looking on more equity and earned funds, stemming from some new real estate revenues which did not exist before,” he told the Caribbean Business Report.

Significantly diversifying its business model over the last few years, the once predominantly lifestyle company has transitioned into a real estate outfit, operating a number of spaces across its Pulse Suites, Pulse Rooms at Trafalgar and other outlets among its 70-unit Lifestyle Village located on the nine-acre Villa Ronai property in St Andrew. These, among the 30-unit residencies priced within the range of US$450,000-US$660,000, are expected to further drive revenue for the company which has seen steady growth in the last few years. Up to the nine-month period ended March, profits for the company climbed to $1.2 billion, up from $928 million in the corresponding 2021 period.

Awaiting audited results for its full financial year performance, the company is looking to continue its growth momentum especially as the debilitating effects of the novel coronavirus pandemic eases and much of its businesses return to 100 per cent occupancy and some existing projects revived.

“In addition to the nine acres on which the project is sited, Pulse is holding options for an additional four acres of adjacent land, slated for future development. So our next projects can be an expansion of Villa Ronai in a way that is credible and sensible as it is located just next to us,” Cooper stated.