FirstRock Real Estate takes stake in Cayman property

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FIRSTROCK Real Estate Investments Limited has acquired a minority stake in a beachfront hotel property in the 7 Mile area of Grand Cayman in an all-cash deal valued US$1.35 million (approximately $205 million).

The acquisition of the property is being led by Denroy Pusey, assistant vice-president — real estate business, First Rock Group, who told the Jamaica Observer that FirstRock will be looking to acquire additional interest in the property which will be a luxury boutique hotel under the Curio by Hilton portfolio.

According to a release from FirstRock Real Estate, the acquisition will redound to the company’s efforts to diversify its portfolio while delivering on its commitment to expand its regional footprint.

“Cayman is a market we’re bullish on and we’ve other investments here,” Pusey told Business Observer, adding that the deciding factor was the long-term cash flow from short-term rentals to tourists that the hotel, when completed, will generate.

The construction of Kailana — a hotel development which began last year — Pusey anticipates, will be completed in the third quarter of 2024.

The real estate company will be partnering with Cayman Islands-based developer NCB Group, which is also an investor in the project, and will have oversight of the construction. Upon completion Kailana will boast 60 rooms and suites ranging between 400 square feet and 3,400 square feet, along with restaurants, spas and a gym.

NCB Group’s investment into the project was also a pull factor for FirstRock Real Estate, Pusey shared.

“When the NCB Group Cayman approached us with this prospect, we found it very attractive. Their brand is one that we are happy to be aligned with, and while the Cayman Islands is a not an unfamiliar location for FirstRock Real Estate Investments, we see where this type of investment is viable and would add value to the portfolio.”

Moreover, the AVP noted that he performed his due diligence by visiting the Cayman Islands, assessing the quality of the NCB Group’s previous projects and found them to exceed expectations. He also explained that FirstRock’s connection with the NCB Group extends back to 2021.

“They seemed to be partners we are comfortable with,” Pusey stated.

With over 10 years’ experience in construction, real estate investments, and project management in corporate Jamaica, Pusey maintains that the strategies employed to close this deal were very straightforward.

“It was of utmost importance to us that the asset has and will retain its value in the years to come. Additionally, we had to ensure that the transaction will provide a good return on investment that will bring value to the company over an extended period of time.”

FirstRock Real Estate Investments Limited continues to attract great partnerships as it solidifies its presence in the international real estate market, injecting value into its expanding portfolio. Unlike a real estate investment trust, FirstRock Real Estate Investments pursues its mandate of being a unique investor in everything real estate.

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Norman Reid

Chairman,
FirstRock Real Estate Investments Limited

Mr. Norman Reid is the Chairman of First Rock Real Estate Investments. He is a career Banker and has served the Financial Services Sector for over 40 years with his most recent post being Senior Assistant General Manager for Retail Banking at NCB. His expertise includes Risk Management, Leadership, Sales Management and Governance. He serves as a Director at the EXIM Bank, Access Financial Services and Growth Tech Limited. He also chairs the Sub-Committees of these Boards.

Norman holds a BA in Banking and Finance, a Diploma in Banking (ACIB) and a Diploma in Retail Banking from the BAI (BANK Administration Institute) USA. He is also a Fellow at the Institute of Banking and Financial services in the UK. Mr. Reid was also appointed as a mentor to the Emerging Leader Initiative administered by the Bank Administration Institute.