RCG-Royal Caribbean Group announced that it had entered into a new partnership with the iCON Infrastructure Partners VI fund, advised by iCON Infrastructure LLP (UK-based independent investment firm) in order to develop strategic cruise port infrastructure in support of RCG’s growth plans.
Access to destinations is of strategic importance to RCG’s core business. The proposed partnership is due to "own, develop, and manage cruise terminal facilities and infrastructure in home ports and key ports of call."
The partnership, owned 90% by iCON VI and 10% by RCG, will be managed by an independent management team with support from RCG. Both parties committed to providing funding for future expansion in accordance with the percentage interest.
Jason Liberty (RCG's new President and CEO) said their partnership with iCON was a unique opportunity to catapult them into the coming decades of port investments, build financial strength, and provide exceptional cruising experiences, responsibly, to their guests at the world's best destinations.
“Over the last few years, we have developed more destinations than any other cruise company and this new partnership will allow us to implement a capital-light investment framework to accelerate the development of strategic destinations around the world. We selected iCON because of our shared strategic priorities – delivering the best experiences in the world, responsibly – and our shared commitment to sustainability, being a committed partner in each of the destinations we visit and exploring the very best locations around the world.”
The leading independent investment group iCON is focused on investing in high-quality infrastructure assets situated predominantly in North America and Europe, with extensive experience investing in ports/port-related infrastructure.
The partnership will initially include PortMiami Terminal A (Florida USA), and development projects in Spain, Italy, and the U.S. Virgin Islands.
The partnership will pursue additional port infrastructure developments based on the robust pipeline of projects as part of RCG’s destination/island port development strategy. At closing (during the first quarter of 2023), Royal Caribbean Group expects to receive net cash proceeds of ~US$210 million. The partnership is due to be accretive to earnings/ROIC/leverage metrics and will allow RCG to continue investing in the development of strategic infrastructure while supporting its Trifecta program's goals.