The managing director of SandBank Capital, a rebranded property investment firm, has predicted a flood of new residents fleeing uncertainty in the US and Europe could boost Cayman’s economy.
Speaking to the Compass at the Cayman Islands Chamber of Commerce Business After Hours event on 12 June, Shaun Myers, the managing director of SandBank Capital, said that the country’s expansion would increase demand for goods and services.
He added that SandBank Capital, which concentrates on commercial, industrial and hospitality real estate, renamed earlier this year from First Rock Capital, aimed to have $100 million in assets under management within five years.
Myers said the firm used artificial intelligence (AI) to help analyse economic, climate and political trends to help chart its course.
He added, “We look at the wider macro-economic environment, the geopolitical environment, climate – all these factors drive supply and demand for real estate.”
Major Caribbean expansion
Myers explained a politically-driven shift towards American citizens looking to move elsewhere and US-resident people from the Caribbean who wanted to return were significant factors.
He said, “From where we sit, the Caribbean is positioned for major expansion … especially with what’s happening in the US right now.
“Once people are coming in, there needs to be support with commercial buildings around them. They’re going to need places to work and places to shop.”
He added European countries were also struggling with geopolitical upheavals and were also looking for a politically stable jurisdiction such as Cayman.
Myers said, “There is uncertainty in Great Britain, there’s been a lot of uncertainty since Brexit.”
Myers was speaking at the “Business after Hours” event held at Crown Square on Eastern Avenue – which SandBank has just acquired a majority interest.
He used the event to highlight the benefits of SandBank to investors who wanted to take advantage of the strength and stability of Cayman’s real estate market, but without the need for personal management of the assets.
Myers said the firm was close to closure of a deal on a “boutique hotel” for about $20 million, which promised a net operating income of $1.7 million a year.
The firm also has a significant presence in Costa Rica, with a range of warehouse and restaurant properties, including KFC restaurants, financed and built by SandBank and leased to the fast food chain for 20 years, as well as a KFC distribution centre.
The firm has also been involved in Florida condominium development and residential projects in Costa Rica, although the primary focus was commercial property.
Myers said that AI was, at present, of most use looking at the US and Latin America, where data was available, but there are ambitions to use it more in the Caribbean market.
He added, “We’re now working to see how they can get that data and AI software to make better decisions – age, income levels, to determine how real estate will fall.
“That’s an area we’re focusing on to assist us with our decision-making.”
Cayman real estate a ‘safe investment’
Myers said that he was confident that the Cayman real estate market would not be affected by global uncertainty.
He said, “I think it’s the opposite and we’re bullish on it being the opposite. People will always need a return on their money.
“The stock market right now, there’s a lot of uncertainty and the bonds market has a lot of uncertainty.
“Real estate, people understand it. It’s a safe investment and it’s the best return as an investment choice.
“Cayman has a finite amount of land and more people are coming to the island every single day. Demand is increasing so the price has increased.
“We are betting the uncertainty in the rest of the world will benefit us.”
Myers said Cayman’s tax arrangements also increased its attractiveness to outside investors.
He added there were regular property acquisition opportunities in Cayman as the baby boomer generation, who had acquired commercial and industrial real estate as investments, looked to divest and retire.
Joanne Lawson, the past president of the Chamber, said afterwards, “Events like this are a great opportunity for people to connect and hear about things, even if it’s not directly of interest to them.
“It’s a good opportunity for them to expand their network. Hopefully, people will hear about the opportunity here and, if it’s not for them, they will tell other people, who will tell other people.
“SandBank is very innovative and they intend to leverage technology – they are very positive about AI and how to leverage it.”
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Benefit us, who is us? The regular caymanian cannot even afford a small piece of land and here we are encouraging more sale of the finite land/property we have left.