Land sales net almost $200M in 2008 for GUYSUCO

Guyana Chronicle, Thursday 8 January 2009

Land sales net almost $200M in 2008 for GUYSUCO
THE Guyana Sugar Corporation (GUYSUCO) via the Privatisation Unit/NICIL executed eight property sale transactions in 2008, with the total sale proceeds for these transactions amounting to almost G$200M.

This is according to a joint statement from the Privatisation Unit, on behalf of GUYSUCO and the Government of Guyana.

Land at Diamond, facing the public road, running south of Demerara Distillers Limited (DDL) was sold as follows:

** 1 acre of land to Demerara Bank for construction of a new branch at
Diamond

** 1.5 acres of land to Republic Bank for construction of a new branch at
Diamond

** 1.115 acres of land to Guyana Bank for Trade and Industry for

construction of a new branch at Diamond

** 1 acre of land to Guyoil for construction of a new service station at
Diamond

Total proceeds from the above listed transactions amount to $83,120,000 and were based on negotiated sales tied to Government and external valuations.

Additionally, sale transactions were executed for the following based on the tendered price:

** 1.02 acres of land at Lot 31 (a) Sea Spray, Leonora to Dr Surendra Persaud;

** 0.96 acres of land at Lot 30 (a) Sea Spray, Leonora to Mohamed I. Ally

Proceeds from these two transactions total $14,620,000.

Finally, sales were concluded with the named parties following previous tenders that did not result in acceptable prices.

** Land at Leonora (Block R) which is ‘restricted’ to a value added wood processing operations, to South American Woods Inc. At the time of the sale, all of buildings had been destroyed by fire or were vandalised leaving only the land to be sold. The land is sold at a price of $80M for 16.3098 acres, resulting in an average price of $4.9M/acre. This price compares favourably against the last tender price for this compound in October 2005 which was $40M and comparable land valuations on the East Bank of Demerara.

** Land at Diamond to NPI Communications Inc. for construction and development of a modern Call Center facility with planned accommodations for 300 seats at a price of $4.5M/acre for 3 acres.

These sale prices were determined based on the last valid bid price, valuations, comparable transactions and business development plans. Total income earned for the above two stated transactions was $93,500,000.

Between 2003 and 2008, total sale proceeds to GuySuCo for properties sold by the Privatisation Unit, as agent of GuySuCo, was $851,620,000. Notable sale transactions include:

** The former Diamond Senior Staff Compound to DDL for the tendered price of $250 M for land and buildings

** Land at Diamond sold to Guyana Beverages Inc. for app $100 M based on a negotiated price of $5M/acre. The sale price was based on comparable transactions and the results of previous tenders. The last public tender for 40 acres of this land totalled $1.75 M/acre in 2003, and

** The sale of the former Camp Street location for $102 M to CLICO.

The transactions concluded in 2008 results in proceeds to GuySuCo of $191,240,000 and shall result in substantial investment and job creation. All sale transactions were approved by Cabinet.

The above transactions reflect Government’s increasing focus on achieving proceeds for GuySuCo especially at a time when the company needs financing whilst promoting employment through real estate development and/or productive activities.