iCON VI closed fundraising in June 2022 with $3.6b of capital committed from more than 50 investors. The fund is advised by iCON Infrastructure LLP, which advises funds with cumulative commitments of more than $8b.
The partnership plans to own, develop and manage cruise terminal facilities and infrastructure in homeports and key ports of call. It will be owned 90% by iCON VI and 10% by Royal Caribbean Group and managed by an independent team with strategic support from Royal Caribbean. Both parties have committed to provide funding for future expansion in accordance with their percentage interest.
Coming out of the pandemic, this is a creative way for the cruise giant to support infrastructure needs.
'It's a positive for the industry as well as destinations looking for ways to service a growing cruise industry,' a source told Seatrade Cruise News.
PortMiami Terminal A and projects in Italy, Spain, USVI
The partnership initially will include PortMiami Terminal A and several development projects in Italy, Spain and the US Virgin Islands. It also will pursue additional port infrastructure developments as part of Royal Caribbean Group’s destination development strategy.
$210m in net proceeds to Royal Caribbean
At closing, anticipated in first quarter of 2023, Royal Caribbean Group expects to receive net cash proceeds of approximately $210m. The partnership is expected to be accretive to earnings, return on invested capital and leverage metrics and will allow Royal Caribbean Group to continue investing in the development of strategic infrastructure while supporting the goals of its Trifecta program.
Royal Caribbean Group President/CEO Jason Liberty called the partnership a 'unique opportunity to catapult us into the coming decades of port investments, build further financial strength and provide exceptional cruising experiences, responsibly.'
'Capital-light investment framework'
The partnership, he added, will allow Royal Caribbean to implement a 'capital-light investment framework to accelerate the development of strategic destinations around the world' and said the parties share a commitment to 'sustainability, being a committed partner in each of the destinations we visit and exploring the very best locations around the world.'
iCON is an independent investment group with a focus on high-quality infrastructure assets located predominantly in North America and Europe, with extensive experience investing in ports and port-related infrastructure.
Earlier iCon funds have investments in energy companies, including wind power and gas, telecom, transportation, healthcare and container terminals in the Netherlands and Italy. The company has offices in London, Düsseldorf, Toronto and New York.
Sustainability focus
'We are thrilled to be partnering with Royal Caribbean Group to develop, own and manage a portfolio of cruise terminals in key strategic markets,' said Iain Macleod, managing partner at iCON. '... In the years to come, we look forward to delivering new high-quality terminals, working closely with key destination communities and with a strong focus on sustainability.'
BofA Securities is serving as exclusive financial advisor to Royal Caribbean Group.
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