FIRST

The company is yet to select a broker to arrange the offer. As to the IPO target, Reid said that would be determined by the company’s pipeline of deals and was yet to be finalised.

The investment in Cayman was done through subsidiary First Capital Cayman Limited. The residential complex is under construction and scheduled for completion in February 2020.

The acquisitions in Florida were made through First Rock USA LLC.

First Rock’s foray into Miami comes as another Jamaican real estate company, Kingston Properties Limited, is reducing its footprint in that market.

Reid acknowledged the withdrawal but noted that First Rock, a company he co-founded, sees geographic diversification as important to its business strategy and sees opportunity in the United States market.

“We, being a new entity, one of our objectives is cross-jurisdictional exposure as a part of our risk-mitigation strategy,” he said.

“The US market is mature, sophisticated and predictable. Our acquisitions are primarily based on cash flows and not speculation on appreciated values.”

Inside Jamaica, First Rock is weighing two private-equity transactions in the financial services sector. At least one should close before year end, Reid said.

Its local real estate portfolio is weighted towards commercial holdings, with limited residential holdings restricted to the luxury short-term rental market and property bought pre-construction for capital appreciation.

The first commercial property, located near Half-Way Tree in Kingston, was acquired for US$3 million and is fully tenanted, said Reid, who declined to name the property, saying it would disclose the identity of the seller.

“The return on equity for that is just north of 10 per cent,” he said.

First Rock has also purchased a 1.5-acre property in Barbican, Kingston, and has hired contractor Relmac Construction Company to construct a four-to five-floor commercial building to be marketed as office space. The project is valued at US$5 million and due for delivery in 18 months, Reid said.

Three luxury villas on the north coast were purchased for just under US$1 million. Five residential units – luxury townhouses and apartments – were acquired pre-construction in Barbican for more than US$2 million and are due for completion in 2020.

Reid said that the two private-equity transactions being pursued would give First Rock a majority stake in each company.