Black Immigrant Daily News
First Rock Real Estate Investments Limited, through its subsidiary First Rock Capital Cayman Limited, has purchased a US$1.35 million stake in a development called Kailani (Hilton) Cayman.
Described as a luxury boutique hotel, Kailani is being constructed in the Seven Mile area of Grand Cayman.
NCB Group in Cayman (no affiliation to NCB Financial Group, which started in Jamaica, is developing the hotel.
Construction is ongoing, and the building structure up to the top floor is already complete, according to the developer, which still has the investment brochure on its website.
The details of the expected return on the investment were not immediately clear. It is also unknown whether the deal would result in First Rock providing funding or a real estate property purchase.
Denroy Pusey, Assistant Vice President – Real Estate Business at the First Rock Group, is leading the acquisition.
“When the NCB Group Cayman approached us with this prospect, we found it very attractive. Their brand is one that we are happy to be aligned with. And while the Cayman Islands is a not an unfamiliar location for FirstRock Real Estate Investments, we see where this type of investment is viable and would add value to the portfolio,” Pusey said.
Pusey said that the strategies employed to close this deal were very straightforward.
“It was of utmost importance to us that the asset has and will retain its value in the years to come. Additionally, we had to ensure that the transaction will provide a good return on investment that will bring value to the company over an extended period of time.”
Denroy Pusey, Assistant Vice President – Real Estate Business at First Rock Group
Upon completion, the property will have 60 rooms, a beach, a gym, spas, restaurants and other amenities. NCB Group described the development as having one of the lowest beachfront property prices in the luxury Cayman Islands.
The developer reasons that investors could save up to half the costs of rival properties.
“At an average of just under US$1,000 per square foot, Kailani offers some of the lowest prices for beachfront property in this part of the island, typically reaching as high as US$2,000 per sq ft,” stated the development website.
NCB added that each hotel owner receives 50 per cent of the gross room rental, less applicable costs.
Investors can also use their hotel suite for two weeks per year, free of charge, and outside of that, receive a 50 per cent reduced rate when booking within 30 days.
Add to that a discount on all food and beverage purchases and exclusive access to the hotel’s wellness programmes and amenities year-round, whether staying at the hotel or not, the investment brochure stated.
FirstRock will tap into the growing wellness tourism industry expected to reach US$1.127 billion in market size by 2025, according to the Global Wellness Institute.