FirstRock acquires Kingston 6 lots for US$5 million
FirstRock Co-founder and CEO Ryan Reid.
First Rock Capital Holdings Limited (FirstRock) has completed the purchase of 3.43 acres of land in Kingston 6 for US$5 million from Desnoes Estates Limited, a subsidiary of PanJam Investment Limited.
The previous owner of the property known as 1, 1B and 3 Bamboo Avenue, had obtained approval for a multi-family dwelling complex.
The lots are to be merged to accommodate a residential complex of 16 townhouses. Applications to modify restrictive covenants were successful, according to Supreme Court documents.
The Bamboo Avenue purchase is FirstRock’s ninth acquisition and follows the company’s listing on the Jamaica Stock Exchange earlier this year.
FirstRock raised around US$12.3 million in IPO in January and later listed Class A shares and Class B shares on the US-dollar market and Jamaican-dollar market of the Jamaica Stock Exchange.
The prospectus, which accompanied the IPO, outlined FirstRock’s plans to acquire the lots on Bamboo Avenue.
“The terrain and location of the subject property make it ideal and suitable for a luxury townhouse development to generate profits through sale and residual income from rental of units. Ground is to be broken in the second quarter of 2020,” it was noted.
FirstRock had in its portfolio eight properties across Jamaica, Costa Rica and the US prior to listing.
The company began operating in March 2019 after raising about US$16 million in debt capital. It made US$218,000 profit from operations since commencing operations.
FirstRock lists as part of its strategic plan the purchasing and improving existing income-producing properties for rental income and the development of properties with selected strategic partners for immediate sale.