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Dream Developers takes on role of contractor to cut costs

Published:Wednesday | April 20, 2022 | 12:07 AMHuntley Medley - Associate Business Editor
Artist impression of Dream at Sugar Mill homes being built at Ironshore in Montego Bay.
Artist impression of Dream at Sugar Mill homes being built at Ironshore in Montego Bay.
Manoj Ramchandani, head of Dream Developers.
Manoj Ramchandani, head of Dream Developers.
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Amid soaring prices for building materials and increased labour costs for workers, who had to be housed on-site amid the raging COVID-19 pandemic, businessman and real estate developer Manoj Ramchandani recently put on the market his maiden...

Amid soaring prices for building materials and increased labour costs for workers, who had to be housed on-site amid the raging COVID-19 pandemic, businessman and real estate developer Manoj Ramchandani recently put on the market his maiden residential property, the $2 billion Dream 36 condominium at Ironshore in the upscale Montego Bay suburb.

For his next undertaking, a smaller apartment complex, which he says is valued at $500 million, Ramchandani has branched out into planning, undertaking and managing the construction himself as contractor through his company, Dream Developers. As a full-fledged building contractor, the development and construction company is said to have its hands full for the time being with the new ‘Dream at Sugar Mill’ project, also located at Ironshore.

Ramchandani is putting up what he is describing as a “boutique development” of nine luxury two-bedroom town houses and apartments on less than half acre of land acquired at Sugar Mill Road, close to his first Dream-branded property. Loan financing has been arranged, he said, by the Victoria Mutual Group, which also funded the $2 billion Dream 36.

As contractor for the project, Dream Developers is expecting to run a tight ship to keep within its 12-month timeline for completing the new development, for which construction began in March.

“Now that we are also the contractor on the project, in addition to being the developer, we have more control over different elements of the construction and therefore have a better grip on the completion time,” Ramchandani told the Financial Gleaner in an interview.

He is also hoping to keep the lid on costs against the background of rising inflation.

“Not only have freight and oil prices gone up significantly around the world, which have impacted the price of building materials, but that has had a chain effect on everything, including trucking in construction, heavy machinery and equipment on the site. What we are trying to do is to absorb a lot of those increases and still be able to sell at the current market prices for luxury town houses and apartments,” Ramchandani said.

While he is keeping a keen eye on rising interests, too, the businessman said the project is still able to secure what he described as good rates from its banking partners, VM Group, although he stopped short of saying what those rates were.

He describes the residential property development business as a low-margin business activity that makes cost containment all the more important.

The 1,200 to 1,500 square feet luxury units are expected to sell for in excess of $50 million. No special segments of the property market are being targeted by Dream Developers. Ramchandani points out that the company’s approach is to build the units with a heavy focus on quality amenities and making them available to whoever can afford them.

As a signature of Dream property developments, Ramchandani says the units at Dream at Sugar Mill are expected to feature a swimming pool, fitness lounge, rooftop outdoor lounge jacuzzi, 24-hour security and ocean view from all units, among other amenities.

“Dream has become synonymous with modern, cutting-edge designs, spacious apartments, great flow, quality materials and quality finishing. That is the mission that has been aligned with the brand and people have come to expect a certain quality of housing from us,” he said.

huntley.medley@gleanerjm.com