FirstRock Real Estate Investments Limited is charting a bold course in the Caribbean and Latin American markets, doubling down on its efforts to acquire prime income-generating properties. Fresh off the heels of its landmark acquisition of the Crown Square Commercial complex in the Cayman Islands, the company is negotiating two additional major deals on the island, signaling its intent to deepen its footprint in high-growth regional markets.
“These are significant opportunities for us,” said Shaun Myers, Director of FirstRock Capital Cayman Limited, the company’s Cayman subsidiary, in a recent interview. “We’re in advanced discussions and look forward to sharing more details in the coming months.”
Cayman Islands: A Strategic Pillar
While FirstRock operates in Jamaica, the United States, and Costa Rica, the Cayman Islands has become a strategic focus. With its tax-friendly environment, economic stability, and strong demand for commercial real estate, Cayman offers fertile ground for growth. The Crown Square complex, housing anchor tenants like the Cayman Islands Government and telecommunications leader Digicel, exemplifies the type of high-occupancy, low-risk investments that align with FirstRock’s growth strategy.
Myers described Crown Square as a “perfect fit” for FirstRock, providing consistent cash flows with yields exceeding 8 percent in US dollars. The property’s value is further enhanced by its location in George Town and its reliable tenants, including Digicel’s strategically significant communication tower.
Strengthening Regional Partnerships
To finance its acquisitions, FirstRock has leaned on a mix of debt and equity, partnering with Cayman National Bank (CNB). The company also aims to strengthen its ties with Republic Bank, CNB’s parent company, to support future expansion.
“This partnership is key to our ability to seize opportunities in the region,” Myers noted. “We believe in fostering long-term relationships that facilitate mutual growth.”
Transforming the Portfolio
FirstRock’s regional portfolio stood at US$57.2 million as of September 2024, with the Crown Square acquisition adding significant heft. The company plans to exit its remaining Jamaican property development projects in 2025, focusing entirely on acquisitions of income-generating properties across the Caribbean and Latin America.
Reflecting on FirstRock’s evolving strategy, Myers emphasized a shift from speculative real estate ventures to stabilized assets. “Our focus is on properties that generate steady cash flow, such as Class A office spaces, refurbished Class B properties, and real estate tied to leading quick-service restaurant brands,” he explained.
Navigating Challenges
Despite its aggressive growth, FirstRock is not immune to challenges. Rising interest costs and foreign exchange losses contributed to a net loss of US$1.45 million for the first nine months of 2024. However, the company has implemented measures to stabilize operations, including reducing administrative costs by 20 percent and maintaining a manageable debt-to-equity ratio of 72 percent.
“Our growth journey has not been without hurdles, but we remain committed to executing our vision,” Myers stated. “The Crown Square acquisition is just the beginning of what we aim to accomplish in the coming years.”
Looking Ahead
As FirstRock turns its attention to 2025, the company’s strategic pivot is clear: exit lower-performing projects and double down on high-performing, income-generating assets in dynamic regional markets. With its sights set on the Caribbean and Latin America, FirstRock is building a portfolio designed to weather economic uncertainties while delivering strong returns for its investors.
“Our acquisitions pipeline is robust, and we are committed to scaling sustainably,” said Myers. “The opportunities ahead are enormous, and we’re ready to seize them.”
