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Foul sale
Article Published: Sunday, March 21st, 2010
• Vaz’s wife gets sweetheart deal from FINSAC
By DURRANT PATE
Senior Staff Reporter
Jamaica Herald
News is unfolding that the wife of Information Minister Daryl Vaz bought a multi-million dollar upscale house in Cherry Gardens, which is a part of the FINSAC debt portfolio at below market value. And the terms of the sale have raised eyebrows in real estate circles.
There are clear indications that the minister’s wife, Ann Marie, got cosier terms from the Jamaica Redevelopment Foundation for the purchase of the Carmel Crescent property, than those offered to owners, Gregory and Paulette Hamilton.
The current estimated value of the property is in excess of $70 million but was sold to Mrs. Vaz for $45 million by the Jamaica Redevelopment Foundation Inc, which bought the FINSAC debt portfolio.
Rejected offers
The last valuation on the property, done in January 2007 by Allison Pitter & Associates, placed a value of $50 to $55 million but with escalation, the current value is said to be between $70 million and $75 million.
The Jamaica Redevelopment Foundation offered Mrs. Vaz a mortgage in the amount of $36 million.
Documents obtained by the Sunday Herald showed that the Hamiltons made several proposals to the Jamaica Redevelopment Foundation to liquidate the debt to FINSAC all of which were rejected.
After the house was put on auction on April 24, 2007, the Hamiltons proposed to liquidate their $68.79 million debt to FINSAC comprising principal of $22.54 million and interest of $45.94 million, calculated at 30 per cent through a one-off payment of $35 million.
A second offer was made on May 2, 2007 for $40 million with a note asking the Jamaica Redevelopment Foundation to advise the Hamiltons of the terms and conditions that it would accept in the spirit of a settlement.
Three weeks later on May 24, 2007, a third offer was made proposing that the debt be capped at $42 million of which $35 million would be financed by Victoria Mutual Building Society (VMBS), payable within 90 days of acceptance along with a cash payment of seven million dollars.
In addition, the Hamiltons, through their attorney, committed to pay all reasonable legal costs associated with bringing the offer to conclusion.
However, the Jamaica Redevelopment Foundation through its attorney, Myers, Fletcher & Gordon, wrote to the Hamiltons advising that the offer had been rejected.
A fourth offer was made on May 28, 2007 for the debt to be capped at $50 million and would be financed through $35 million to be provided by VMBS, payable within 90 days of acceptance, $5 million in cash upon acceptance and $10 million in cash, payable 90 days from the disposal of assets held by the couple.
Myers, Fletcher & Gordon responded the following day, advising that its client had rejected the offer.
A fifth offer was placed on the table on June 19, 2007 that the debt be settled at the full amount claimed by the Jamaica Redevelopment Foundation in its notice of February 22, 2007, which is just over $66 million.
The Hamiltons proposed that the amount be financed by $35 million from VMBS, payable 90 days from the acceptance; $5 million in cash payable upon acceptance of the offer and the balance to be secured by first legal mortgage over the remaining security.
The mortgage was to run for one year at an interest rate of 12 per cent per annum and is to be open to permit partial discharge as security is sold and transferred.
It was also proposed that the Jamaica Redevelopment Foundation return the duplicate certificate of titles to the couple’s College Green premises along with executed discharge of mortgage to the said premises.
Vaz’s response
Given the many offers presented by the Hamiltons only to be rejected by the Jamaica Redevelopment Foundation, the Sunday Herald sought answers as to why the Hamiltons’ offers weren’t accepted and why the offer by Mrs. Vaz was found favourable.
In addition, the Sunday Herald wanted to find out why the company was providing a mortgage for a house it was selling and why it rejected the Hamiltons’ last offer, which also proposed a mortgage arrangement.
In its reply to the Sunday Herald enquiries, the Jamaica Redevelopment Foundation declared that it doesn’t discuss with the media its business or information about its clients.
Daryl Vaz, in a written response to Sunday Herald’s questions, admitted that the house was bought for $45 million, which was partly financed by a $36 million mortgage from the Jamaica Redevelopment Foundation.
Asked whether he had any material interest in the property and if he was the chief financier , even though his wife’s name was the only name on the title, Vaz replied in the negative.
Vaz explained, that in time, should the property become the family home, he would have a 50 per cent interest in the property, in accordance with section 6 of the Property (Rights of Spouse) Act.
The information minister stated that the property was widely advertised for sale for over two years and was even offered for sale at public auction, noting that his wife was not the first prospective purchaser.
<span style="font-weight: bold">The Hamiltons were served notice to quit the property by March 11, 2010. They were granted an extension to leave the property – which they had built from scratch and called home for the past nine years – by month end.</span>
Article Published: Sunday, March 21st, 2010
• Vaz’s wife gets sweetheart deal from FINSAC
By DURRANT PATE
Senior Staff Reporter
Jamaica Herald
News is unfolding that the wife of Information Minister Daryl Vaz bought a multi-million dollar upscale house in Cherry Gardens, which is a part of the FINSAC debt portfolio at below market value. And the terms of the sale have raised eyebrows in real estate circles.
There are clear indications that the minister’s wife, Ann Marie, got cosier terms from the Jamaica Redevelopment Foundation for the purchase of the Carmel Crescent property, than those offered to owners, Gregory and Paulette Hamilton.
The current estimated value of the property is in excess of $70 million but was sold to Mrs. Vaz for $45 million by the Jamaica Redevelopment Foundation Inc, which bought the FINSAC debt portfolio.
Rejected offers
The last valuation on the property, done in January 2007 by Allison Pitter & Associates, placed a value of $50 to $55 million but with escalation, the current value is said to be between $70 million and $75 million.
The Jamaica Redevelopment Foundation offered Mrs. Vaz a mortgage in the amount of $36 million.
Documents obtained by the Sunday Herald showed that the Hamiltons made several proposals to the Jamaica Redevelopment Foundation to liquidate the debt to FINSAC all of which were rejected.
After the house was put on auction on April 24, 2007, the Hamiltons proposed to liquidate their $68.79 million debt to FINSAC comprising principal of $22.54 million and interest of $45.94 million, calculated at 30 per cent through a one-off payment of $35 million.
A second offer was made on May 2, 2007 for $40 million with a note asking the Jamaica Redevelopment Foundation to advise the Hamiltons of the terms and conditions that it would accept in the spirit of a settlement.
Three weeks later on May 24, 2007, a third offer was made proposing that the debt be capped at $42 million of which $35 million would be financed by Victoria Mutual Building Society (VMBS), payable within 90 days of acceptance along with a cash payment of seven million dollars.
In addition, the Hamiltons, through their attorney, committed to pay all reasonable legal costs associated with bringing the offer to conclusion.
However, the Jamaica Redevelopment Foundation through its attorney, Myers, Fletcher & Gordon, wrote to the Hamiltons advising that the offer had been rejected.
A fourth offer was made on May 28, 2007 for the debt to be capped at $50 million and would be financed through $35 million to be provided by VMBS, payable within 90 days of acceptance, $5 million in cash upon acceptance and $10 million in cash, payable 90 days from the disposal of assets held by the couple.
Myers, Fletcher & Gordon responded the following day, advising that its client had rejected the offer.
A fifth offer was placed on the table on June 19, 2007 that the debt be settled at the full amount claimed by the Jamaica Redevelopment Foundation in its notice of February 22, 2007, which is just over $66 million.
The Hamiltons proposed that the amount be financed by $35 million from VMBS, payable 90 days from the acceptance; $5 million in cash payable upon acceptance of the offer and the balance to be secured by first legal mortgage over the remaining security.
The mortgage was to run for one year at an interest rate of 12 per cent per annum and is to be open to permit partial discharge as security is sold and transferred.
It was also proposed that the Jamaica Redevelopment Foundation return the duplicate certificate of titles to the couple’s College Green premises along with executed discharge of mortgage to the said premises.
Vaz’s response
Given the many offers presented by the Hamiltons only to be rejected by the Jamaica Redevelopment Foundation, the Sunday Herald sought answers as to why the Hamiltons’ offers weren’t accepted and why the offer by Mrs. Vaz was found favourable.
In addition, the Sunday Herald wanted to find out why the company was providing a mortgage for a house it was selling and why it rejected the Hamiltons’ last offer, which also proposed a mortgage arrangement.
In its reply to the Sunday Herald enquiries, the Jamaica Redevelopment Foundation declared that it doesn’t discuss with the media its business or information about its clients.
Daryl Vaz, in a written response to Sunday Herald’s questions, admitted that the house was bought for $45 million, which was partly financed by a $36 million mortgage from the Jamaica Redevelopment Foundation.
Asked whether he had any material interest in the property and if he was the chief financier , even though his wife’s name was the only name on the title, Vaz replied in the negative.
Vaz explained, that in time, should the property become the family home, he would have a 50 per cent interest in the property, in accordance with section 6 of the Property (Rights of Spouse) Act.
The information minister stated that the property was widely advertised for sale for over two years and was even offered for sale at public auction, noting that his wife was not the first prospective purchaser.
<span style="font-weight: bold">The Hamiltons were served notice to quit the property by March 11, 2010. They were granted an extension to leave the property – which they had built from scratch and called home for the past nine years – by month end.</span>