The bid for CLICO Mortgage and Finance (CMFC) made by Barbados Public Workers Cooperative Credit Union Limited (BPWCCUL) is on the verge of expiring. September 30th, 2009 marks the expiration of the recommended offer for the mortgage firm and it is also marks the end of the third quarter reporting period for CMFC.
Up until the late afternoon hours of September 30 2009, the authorities of the credit union did not received word about their offer for CMFC. The offer officially ends at midnight on September 30, 2009.
The government committee chosen to handle the issues surrounding CLICO assets in May, made a recommendation pointing to the direction of Barbados Public Workers Cooperative Credit Union Limited, the largest credit union in Barbados. Other bids came from Consolidated Finance, the largest finance house in Barbados and Barbados National Bank (BNB).
This newest development could mean that the credit union extends or withdraws its offer.
CLICO Mortgage and Finance recorded a $2 million profit in 2007.
It is believed that the BPWCCUL will not make any major changes to the firm but bring significant investment to the firm and put it on sound financial footing.
Six months ago, the Central Bank of Barbados put forward $10 million to the disposal of CLICO Mortgage and Finance as a safeguard following the difficulties of C.L Financial Holdings the parent company in Trinidad and Tobago.
One of the major developments of the lifestyle property development firm, Caribbean Lifestyle only has two units remaining for sale, and construction of two other developments owned by the firm has been suspended.
This is the word from the sales office of Caribbean Lifestyle regarding Fairwind Lane in the South, Sand Castle on the south coast and Kings Gate on the exclusive west coast of Barbados.
Fairwind Lane which sits minutes from the Grantley Adams International Airport and stands as the firm’s newest luxury community on the south coast of Barbados has completed construction.
According to the sales office of the property development firm, there are only two three-bedroom units left in Fairwind Lane. Although they both have the same square footage 2,301 square feet, one of the units is available for sale at BDS $890,000 without amenities and the other is available with a sale price of BDS $900,000 with amenities. That development features three attractive home styles of generous proportions designed for tropical living are available to a privileged few. In addition to the obvious and tangible benefits offered at Fairwind Lane, nearby there is a diverse choice of activities. The amenities which are offered could be attractive offering for sportsmen and sports enthusiast these include golf, tennis, swimming, wind surfing & kite surfing, soaking up the sun or alternatively relaxing in the shade and socializing with neighbors.
Meanwhile construction at Sandcastle and Kings Gate has been suspended.
These two developments will stand in the two tourist belts of the island and with Kings Gate featuring luxury living and Sandcastle showing a blend of modern Caribbean architecture and contemporary interiors. Kings Gate is nestled on the ‘Platinum Coast’ of the island and features lush gardens and a sparkling pool along some of the highest quality amenities. On the other hand Sandcastle is described as an exceptional lifestyle community with spacious residences ranging in size from 1350sq ft to 2000 sq. ft and four unique floor plans purchasers can select a design to suit their lifestyle.
The mortgage market in Barbados could be in for a substantial change, with one of the major players about to change hands with its ownership.
But an interesting point surrounding the issue is that at the end of the day all depends on the decision of the Board of Directors of CLICO Mortgage and Finance Company (CMFC).
The government committee that was chosen to handle the issues surrounding CLICO assets in May, has made a decision regarding who they believe made the best offer for CLICO Mortgage and Finance. That recommendation points to the direction of Barbados Public Workers Cooperative Credit Union Limited, the largest credit union in Barbados. Other bids came from Consolidated Finance, the largest finance house in Barbados and Barbados National Bank (BNB).
Though the final decision on which bid to accept lies with the CLICO board of Directors, and that decision has not yet been handed down, BNB is a subsidiary of Republic Bank of Trinidad and Tobago it has been reported that that firm is in the process of amending its bid for the mortgage company.
The seven member board of Directors of the mortgage firm include; Leroy Parris who is the Executive Chairman of CLICO Holdings Barbados Ltd, the Parent company of CMFC, Leslie Haynes who is a practicing attorney at law and Terrence Thornhill is the President of Clico Holdings (Barbados) Ltd, Woodbine Davis is the immediate past Chairman of the Board of Directors of CMFC. Additionally the non-executive members of the board include; Tony Marshall who joined the CMFC Board in 2001, Vishnu Ramlogan who joined the CMFC board in 2001 and Anthony Ellis who became member of the CMFC’s Board of Directors in 2003.
Moreover until the final decision is handed down by CLICO Board of Directors everyone involved waits with bated breath on the decision.
BNB already owns Barbados Mortgage and Finance Company (BMFC), which is one of this country’s leading mortgage firms. BMFC has an outstanding mortgage asset of $316.5 million at the end of 2008. Net Income after tax for BMFC for the period ended September 2008 was $6.21 million, an increase of $1.10 million or 21% over the net income of $5.11 for 2007. Meanwhile in 2008, CLICO Mortgage and Finance recorded a $2 million profit.
It is believed that the Barbados Public Workers Cooperative Credit Union will not make any major changes to the firm but bring significant investment to the firm and put it back on more solid ground.
Six months ago, the Central Bank of Barbados put forward $10 million to the disposal of CLICO Mortgage and Finance as a safeguard following the difficulties of C.L Financial Holdings the parent company in Trinidad and Tobago.
