In a significant shakeup, FirstRock Group is experiencing a wave of departures among its senior leadership, raising alarms about the company’s stability and the future of its key real estate ventures. Prominent figures such as Denroy Pusey and Sable-Joy McLaren have recently exited the organization, intensifying concerns over ongoing projects like the flagship Hambani Estates development.
Over the past four months, eight individuals have left FirstRock Group, including two high-level executives who departed in December alone. Notably, Sable-Joy McLaren, the senior manager overseeing group marketing, resigned in October, prompting updates to her LinkedIn profile. Additionally, a job posting for a Group Legal and Compliance Manager appeared on LinkedIn in late November, a role currently held by Courtnie Brady, indicating potential further changes in the management hierarchy.
FirstRock Group oversees FirstRock Real Estate Investments Limited, a publicly traded entity focused on property development. The company’s online presence has been compromised recently, with the website firstrock.com remaining inaccessible for several weeks, adding to the unease among stakeholders.
The departure of Denroy Pusey, formerly the head of real estate business, last month has particularly unsettled the company. This move follows the exit of Christopher Yeung, co-founder and former managing director of Premier Private Equity (FirstRock Private Equity). When approached by the Jamaica Observer, Pusey cited unresolved issues with the Hambani project as the reason for his departure, expressing frustration over unmet deadlines and unfeasible solutions.
Looking ahead, Pusey is expected to pursue opportunities with Tri-Qual Construction Group and Kairos Properties, signaling his intent to remain active in the real estate sector despite the challenges at FirstRock.
Hambani Estates, located at 1-3 Bamboo Avenue in St. Andrew, Jamaica, represents FirstRock Real Estate’s inaugural development effort. Initiated in late 2021 with a $10 million financing line from Sagicor Bank, the project was intended to deliver twelve luxury townhouses by mid-2023. However, sales have been sluggish, with only one unit sold since construction began in 2022, pushing the completion date to early 2025. This delay has compelled FirstRock Real Estate to request a one-year extension on its loan from Sagicor Bank, originally due in May.
The postponement of Hambani Estates poses significant risks, as it constitutes a third of FirstRock Real Estate’s asset portfolio. Additionally, Sagicor Bank holds an unlimited corporate guarantee against the loan, heightening the financial pressure on the company. Compounding these issues, the National Environmental & Planning Agency (NEPA) recently denied FirstRock’s commercial development application for a property at 5 Seaview Avenue, leading to the demolition of the existing structure two years prior.
In response to mounting debts, Ryan Reid, FirstRock Group’s executive chairman, revealed plans to refinance and repay liabilities. By September, the company had redirected investments and secured funding to reduce its debt by $3.15 million. Furthermore, FirstRock Real Estate has been liquidating assets, including the sale of the 2 Retreat Avenue property in St. Andrew to KingAlarm Services for $4 million—$500,000 below the purchase price—and other properties in Costa Rica and Jamaica.
Despite these financial maneuvers, FirstRock Real Estate faces ongoing challenges, including $18.43 million in debt secured against several joint-venture properties in St. Andrew. The company has also expanded internationally, securing a 20-year lease for two KFC locations in Costa Rica and acquiring a majority stake in the Crown Square Commercial complex in the Cayman Islands for $1.7 billion. However, it remains uncertain how these strategic moves will be received in the broader Latin American and Caribbean markets.
FirstRock Real Estate’s stock has suffered a dramatic decline, falling from $16.17 in January 2020 to $9.92, reflecting a 39-80% decrease for long-term investors. The latest financial reports indicate a 58% drop in net operating income to $1.64 million and a swing from a net profit of $957,695 to a net loss of $1.45 million. The company’s total assets have also decreased by nine% to $57.25 million.
Adding to the turmoil, FirstRock Group is embroiled in a legal battle with former Head of Real Estate, Pierre Shirley, who owes $32.62 million under a staff loan agreement from July 2019. The court case remains unresolved, pending further hearings after the recent Christmas break.
As FirstRock Group navigates these tumultuous times, the real estate and investment communities are closely watching to see how the company will stabilize its leadership and financial footing amidst ongoing project delays and strategic realignments.
