JAM | Nov 29, 2023

First Rock to develop two new KFC locations in Costa Rica

/ Our Today

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Shaun Myers (left), VP, finance and planning, FirstRock Group; and Christian von Breymann, International Trade & Finance Costa Rica, finalise the deal at the Invicta Legal office in Costa Rica.

First Rock, through its wholly owned subsidiary First Rock Latam One SRL, has signed a deal to acquire two parcels of land in Allajuela, San Jose for the construction of two new KFC restaurants, which will then be leased to Intelectiva Costa Rica S.A., the operators of KFC Costa Rica, for a term of 20 years.

With a projected construction timeline of just four months, First Rock is anticipating positive cashflows from the investment in early Q2 of 2024.

Oscar Sandoval Morales, legal representative for BAC (centre), looks on while Shaun Myers (left), VP of Finance & Planning, FirstRock Group; and Andrea Sandoval, Invicta Legal, signs the final documents to seal the deal.

BAC Credomatic, one of the largest financial companies in Latin America, will be financing the construction, at single-digit rate pricing with a 12-month moratorium on principal payments. International Trade and Finance CR, SRL and Newmark are the co-brokers on the transaction, and will also be executing the project management functions of the construction process with the oversight of the First Rock team.

“This deal with KFC represents a significant milestone for First Rock. We are very excited about this association with a world-renown brand such as KFC. And for further context, Latin America represents the most profitable region for KFC worldwide; and the Costa Rican franchise has been voted number one in Latin America for the past few years. This simply means we have a great tenant,” said Shaun Myers, group vice-president of finance and planning at First Rock.

Myers, who has full oversight of First Rock’s North and Latim American operations, further commented: “We went through several months of extensive due diligence led by Andrea Sandoval from the Invicta Legal team. Additionally, with BAC as the financing partner, the level of due diligence undertaken was even further enhanced. This partnership with BAC underscores the growth of the company in the region, and the terms of the financing offered will allow us to generate positive cashflows early in the deal.”

Adrian Araya Araujo, development manager at KFC Costa Rica, also expressed delight at this new partnership. “We are happy with this new partnership with First Rock…. and we look forward to working together on more projects in the future,” he said.

Costa Rica, chosen for its political and economic stability, is a key jurisdiction for First Rock’s continued regional diversification strategy.

“We are bullish on the region, and we have more deals in the pipeline…..over US$200 million worth of high quality income-generating properties which we will seeking to syndicate with other Jamaican real estate firms to acquire next year.” Myers affirmed.


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