Durrant Pate/Contributor

FirstRock Real Estate Investments has successfully acquired a majority stake in the prestigious Crown Square Commercial complex in The Cayman Islands and an adjacent commercial tower for the equivalent of J$1.6 billion. 

This acquisition marks the single largest acquisition for the company to date and was executed through its subsidiary, FirstRock Capital Cayman. This investment underscores FirstRock’s strategic focus on increasing investments in high-quality, income-producing properties throughout Latin America and the Caribbean (LAC) region.

The transaction, financed by Cayman National Bank, is a significant step in FirstRock’s ongoing efforts to diversify and expand its real estate portfolio in the Cayman Islands and other markets in LAC.

It represents the largest transaction for FirstRock Real Estate Investments to date and aligns squarely with its shift towards further regional diversification outside of Jamaica and primarily focuses on assets with stable income generation. 

Lucrative real estate asset

The financing structure was executed by the FirstRock team, led by Shaun Myers, senior vice president of finance and international business at FirstRock Group. Crown Square Commercial Complex is located in the heart of the capital Georgetown, and continues to see robust demand for both retail and office spaces. 

The acquisition boasts prime tenants including agencies of Government as well as a communication tower, which is fully leased to Digicel, a leading telecommunications provider in the region. This deal boosts FirstRock real estate asset base by J$1.6 billion.

The Crown Square complex and the communication tower will bolster the group’s rental income to a net positive of gross of seven figures. Crown Square Limited, the previous owners of the Crown Square Commercial Complex expressed its confidence in the future of the property under FirstRock’s ownership.

The transaction marks FirstRock’s second foray into Cayman, where in 2021, the company acquired five residential condominiums, which were subsequently sold at a profit, further demonstrating its ability to maximise value and generate strong returns.

Positive endorsement of the deal

Commenting on the acquisition, FirstRock Group executive chairman, Ryan Reid says, “We have been working quietly and diligently on this transaction for roughly nine months. We signed the agreement a few months ago and have finally closed, having received the requisite licenses. 

For Myers,  “This acquisition is a significant milestone in our strategy to grow our commercial real estate portfolio and create value for our stakeholders.”  He notes that the acquisition of Crown Square and the Digicel-leased tower marks a significant enhancement to FirstRock’s portfolio, setting the stage for ongoing growth across the region. With a keen focus on strategic acquisitions.

Crown Square Limited commented, “We are pleased to have concluded this transaction with FirstRock, a company that brings a strong track record of successful investments in the region. The Crown Square Complex has long been a prime asset in Georgetown, and we believe FirstRock’s continued stewardship will ensure its future success as a vibrant business hub. We look forward to seeing the property continue to thrive under their management.”

FirstRock Real Estate Investments continues to strengthen its position as a leading force in Caribbean real estate investments. In 2023, First Rock, through its subsidiary First Rock Latam One SRL, also signed a deal to acquire two parcels of land in Allajuela, San Jose for the construction of two new KFC restaurants, which were leased to Intelectiva Costa Rica S.A., the operators of KFC Costa Rica, for a term of twenty years.