Jamaican property investment firm, First Rock Capital Holdings, has made a US$3.1 million investment in the Cayman Islands, after it secured financing from CIBC FirstCaribbean.
The company’s subsidiary First Rock Capital Cayman Ltd has acquired five luxury residential units on Seven Mile Beach in the West Bay area, according to Ryan Reid, First Rock Group co-founder and CEO.
“First Rock Cayman has secured financing in the amount of US$1.619 million towards the acquisition of the units in Grand Cayman. The total cost of the acquisition is US$3.1 million,” Reid said in a press release.
According to the company’s 2019 IPO prospectus, the five units are part of The Grove, a mixed-use development consisting of commercial and retail spaces, in addition to 58 one-bedroom apartments.
“The units will be retained, managed and marketed to international visitors for short-term rentals,” the prospectus said.
Jamaican stock market-listed First Rock Capital, which invests in real estate and private equity ventures, said that after having successfully deployed capital in Jamaica, investments overseas through regional subsidiaries were a natural progression.
First Rock Group assistant vice president of finance and planning, Shaun Myers, said the firm had started working on the Cayman transaction in 2019.
“The due diligence requirements for establishing a banking relationship in Cayman, are quite rigorous, especially in seeking debt financing. In 2020, the Covid-19 pandemic caused banks to significantly tighten their lending requirements,” he said. “However, after steadfast negotiations, we were still able to achieve a flexible structure that perfectly aligns with our objectives, and at a rate much lower than those currently on offer in the local market,” Myers said.
Catherine Bryan, senior corporate banking manager at CIBC FirstCaribbean, said in the press release, “Despite some economic head winds regionally, this deal is an expression of confidence in regional businesses to weather the storms occasioned by the Covid-19 pandemic and emerge stronger.”