Investments to be rolled out in US, Cayman Islands and Guyana

Private equity and real estate development company, First Rock has unveiled ambitious expansion plans for the rest of 2021.

These expansion plans will see the company going even further into the American market, Cayman and the Guyanese market, which was last year listed as the fastest growing market in the world. In addition to growing its total assets by 40 per cent to US$50 million during the current financial year, First Rock is expanding in the Cayman Islands through residential and commercial properties.

The Cayman Islands represents a strong growth strategy and the company’s management expects at least a 20 per cent growth in 2021 as well as an expansion in the United States (New York and Atlanta).

The expansion in Guyana is being executed through residential and commercial properties. The company’s management has highlighted that the expansion in Guyana “is far advanced on deliberations and negotiations in Guyana and we expect to have a strong presence in Guyana for the current financial year”.

Net operating income surged by US$6 million for its 2020 financial year

First Rock grew net operating income to US$6 million for 2020, up from the US$2.02 million recorded for 2019. This resulted in a net profit of US$2.66 million for the financial year ended December 31, 2020 versus US$692,934 for the 26 months ended December 2019.

First Rock’s key strategy is asset diversification across multiple jurisdictions with:

1.    68% in Jamaica

2.    10% in Cayman Islands

3.    16% in Costa Rica

4.    6% in Florida

Ryan Reid, company president and CEO, remarked that, “this diversification strategy will continue into the current financial year”.

Regarding pipeline investments listed in the company’s prospectus, such as the Suntrust Bank and Shoppes at Rosehall, Reid stated that these were not pursued following due diligence exercises.

As it relates to the 12-14 Oxford Terrace, New Kingston investment property, Reid told shareholders in the company’s annual report that, “the company is in the process of undertaking improvements on the property to make it more attractive. The property is attractive specifically for the classification of the businesses that are being targeted for tenancy”.

He said First Rock has strong interest from prospective tenants and, as soon as the improvements are completed, we expect the building to be fully tenanted.

Reid reported that the “Board of Directors has agreed that the focus for the company is on real estate and real estate assets at this time. Private equity has therefore been jettisoned for our strategy”.