First Rock continues investment in the Cayman Islands
Secures funding from CIBC to execute expansion
Jamaican-based private equity and real estate outfit First Rock capital Holdings Limited is continuing its investment in the cayman islands.
This latest investment, totalling over USW$3 million or over J$430 million, was made in a luxury real estate development where First Rock had first made its Cayman Islands investment.
First Rock, which is celebrating its first year as a listed company on the Jamaica Stock Exchange, made its entry into the Cayman Islands in August last year when its Cayman subsidiary, First Rock Capital Cayman Limited, executed a Us$3-million deal, deploying capital in a luxury development in the West Bay area of Cayman.
Ryan Reid, First Rock Group co-founder and chief executive officer (CEO), disclosed that First Rock Capital Cayman Ltd has acquired five more luxury residential units on the seven-mile beach in Grand Cayman.
“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 confirmed.
He added that First Rock Capital has been forthcoming in attracting great partnerships, as it makes major injections into various real estate and private equity ventures locally and overseas.
According to the First Rock CEO, “Having led a successful capital deployment strategy in Jamaica, in accordance with its corporate plan, First Rock Capital saw expansion and capital deployment overseas as a natural progression.
“The real estate and private equity company with regional subsidiaries has been aggressive with its overseas acquisitions.”
INVESTMENT LONG IN COMING
“We started working on this transaction in 2019. The due diligence requirements for establishing a banking relationship in Cayman are quite rigorous, especially in seeking debt financing,” Reid explained.
Pointing out that last year the novel coronavirus pandemic caused banks to significantly tighten their lending requirements, Reid emphasised that after steadfast negotiations, First Rock was still able to broker flexible investment financing. He stated that the structure of the loan “perfectly aligns with our objectives, and at a rate much lower than those currently on offer in the local market”. First Rock Group’s assistant vice-president for financing and planning Shaun Myers indicated that the private equity and real estate outfit’s ability to broker such a loan, “is also a testament to the confidence reposed in us by
CIBC Firstcaribbean (Cayman) in facilitating this cross-border financing”.
CIBC EXPRESSES CONFIDENCE IN DEAL
Senior corporate banking manager at CIBC Firstcaribbean, Catherine Bryan, stated, “We are delighted to partner with First Rock Capital Cayman Ltd to provide this financing especially at this time. Despite some economic headwinds, regionally, this deal is an expression of confidence in regional businesses to weather the storms occasioned by the coronavirus pandemic and emerge stronger. Our bank is known for its innovative and personalised approach to providing unique banking solutions to our clients, and our specialised team was happy to work with First Rock Capital Cayman Ltd to tailor a financial package uniquely suited to their needs at this time.”