Tue | Nov 24, 2020

Royal Caribbean Cruise owns real estate in Falmouth, runs leasing portfolio

Published:Friday | June 7, 2019 | 12:26 AM

Shellion Rhoden, business manager of the Falmouth Jamaica Land Company Limited (FJLC), said Monday that occupancy continued to be high, with only six shops out of 60 available for lease at this time.

“We are reviewing applications, but we definitely are not taking any more souvenirs,“ she told the Financial Gleaner, explaining that the company was a subsidiary of Royal Caribbean Cruises Lines (RCCL), which operates commercial properties landside at the Falmouth Port.

The Port Authority of Jamaica (PAJ) operates the adjacent port. “They do the access control and berthing control of the ships,” Rhoden said, outlining that FLDC managed the commercial developments.

Royal Caribbean is an investor in Falmouth, partnering with the PAJ. Its ships, Harmony of the Seas, Allure of the Seas and Oasis of the Seas, are three of the biggest ships in the RCCL fleet which routinely call at the port.

Rhoden did not share revenue from commercial operations, nor did she comment if RCCL ran similar enterprises in other ports. For 2018, RCCL reported net income of US$1.8 billion.

In the FJLC’s Jamaican portfolio are all shops which are leased, as well as a three-storey building with apartment units.

The port includes restaurants, cafés, boutique shops, craft markets, offices and residences, citing historic attractions and points of interest within walking distance on its website.

The buildout, contracted by the PAJ, was done by E. Pihl & Son, an international contracting company based in Denmark. Pihl provided construction and project management, with financial arrangements made possible by the central bank of Denmark.

The FJLC properties, Rhoden said, was acquired and reconstructed from 2011 when the upgrade of port facilitates was done in the historic port.

With over 120,000 square feet of leasable retail space, the commercial operation includes a variety of retail and duty-free shops.

The PAJ, in its annual report for 2016-17, said Falmouth continued to be the island’s most popular cruise port with 721,501 visitors, despite a decline in passenger arrivals of 5.2 per cent (39,315) relative to the fiscal year 2015-16.

The port was built at a cost of US$270 million. The town is undergoing further upgrades to enhance visitor experience and use of space.

avia.collinder@gleanerjm.com