Kemtek means business

AFTER nearly four decades concentrating on residential housing, family-owned Kemtek Development and Construction Limited has made its first investment in commercial real estate, completing a 90,000-square-foot corporate complex along Constant Spring Road, St Andrew in a move that broadens its property business beyond the sale of homes. The development at 147–149 Constant Spring Road — officially opened on Wednesday evening — combines Kemtek’s new corporate headquarters with five of the six floors intended for leasing, positioning the company to earn rental income alongside revenues from its long-standing residential development operations. The investment represents a significant departure for the Tulloch family business, which has spent the past 37 years developing housing communities across Jamaica and is currently undertaking five gated developments comprising approximately 2,500 housing solutions in Greater Bernard Lodge, St Catherine. Kemtek has not disclosed how much it spent on the commercial complex, which has been six years in the making since the company acquired the property in 2020. However, the development marks an expansion of its property interests as it puts its experience in residential construction to work in the commercial market. Chairman and Managing Director Dr Sylvester Tulloch, who founded the company in 1989, described the project as a new stage in Kemtek’s development. “For 37 years, Kemtek has been associated primarily with residential development. Today, this building demonstrates that the knowledge, expertise, and experience we have accrued over those years can also be applied to commercial property development,” he told guests at Wednesday’s opening. The move also marks a striking progression for a company that once operated from just 600 square feet of rented premises on Balmoral Avenue in Kingston. Its new building represents 150 times that space, reflecting the growth of a business that has delivered thousands of homes and progressively expanded its operations over the decades. Director Garwin Tulloch, reflecting on the company’s journey during the ceremony, recalled its progression from the Balmoral Avenue office to an 800-square-foot location at another commercial complex, before expanding further to accommodate its administrative and legal operations. “This transition has been remarkable. From 600 square feet of rented space to where we are today,” he said, recalling visits to the original office as a schoolboy and the responsibilities he now carries in the family enterprise. While the company has not disclosed the financing structure for its latest investment, Garwin acknowledged Jamaica National as a financing partner and National Commercial Bank for its support during the company’s early days. The current project involved several local contractors and suppliers, with Karl Tulloch, who oversees administration and special projects, playing a central role in coordinating the development. Kemtek’s move into commercial real estate comes against the background of a residential portfolio that has expanded considerably since its first development in St Catherine in 1989. The company has delivered more than 3,000 housing solutions across its North Coast developments, including projects in Drax Hall, St Ann, while its ongoing Greater Bernard Lodge programme represents another substantial commitment to the housing market. The company’s origins, however, were considerably more modest than its current development pipeline suggests. The elder Tulloch, who previously spent 10 years in teaching and another decade in development banking, established Kemtek on June 15, 1989, with the ambition of providing quality homes at affordable prices. Its first project, undertaken with business partner Frank Otter, involved the acquisition of approximately 29 acres at Keystone, St Catherine, for $1 million. Raising the equity for that acquisition required Tulloch to sell his personal vehicle for $350,000 and secure a further $150,000 loan from the then Mutual Security Bank. The partners subsequently sold 25 lots at $50,000 each to generate initial construction funds before obtaining a $12-million debenture loan from Jamaica National Building Society to advance the development. The project was completed within three years, establishing the financial base for further expansion. Tulloch and his late wife, Julie, subsequently acquired full ownership of the business after buying out the original partner. Kemtek went on to develop residential properties across several parishes, but its growth was tested during Jamaica’s financial crisis in the 1990s, when interest rates climbed to approximately 35 per cent and the company found itself carrying an $18-million loan against townhouses that were proving difficult to sell. Rather than continue accumulating interest, Tulloch said he calculated the cost of six months’ interest payments and reduced the asking prices of the remaining units by an equivalent amount. Within six months, Kemtek had sold four units, repaid the outstanding loan and retained enough capital to acquire another property. “That experience taught me an important lesson. Success in business is not simply about having good plans. It is about recognising when circumstances have changed and having the courage to change your strategy,” he said. The business has since grown into a second-generation family enterprise, with Tulloch’s four sons occupying key management positions. Garwin oversees operations, Handel is responsible for technical services, Karl handles administration and special projects, while Romain leads human resources. Their involvement has become an important part of Kemtek’s succession planning as the company seeks to preserve the business established by its founder while pursuing new areas of investment. “For me, this represents something very important. It represents continuity, succession, and the opportunity to build an institution that will outlive its founders,” elder Tulloch said. Wednesday’s opening attracted several senior government officials, including Deputy Prime Minister Dr Horace Chang, who delivered the keynote address, ministers Daryl Vaz and Dr Christopher Tufton, Minister of State Delano Seiveright, Opposition Member of Parliament Fitz Jackson and St Andrew Custos, Ian Forbes. Chang praised the company’s contribution to Jamaica’s housing market and highlighted the role of developers in creating employment and supporting the development of safer communities. He also pointed to the importance of construction quality, particularly as the country continues its recovery from Hurricane Melissa. During the ceremony, the elder Tulloch also announced the establishment of the Kemtek Foundation, which is expected to commence operations with $50 million in seed funding, increasing eventually to $100 million. The foundation will provide scholarships and educational grants, support early childhood institutions and assist vulnerable families.