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Kingston Properties acquires its third warehouse

Kingston Properties Limited (KPREIT) has completed the acquisition of an 88,000-square-foot-warehouse on just under four acres of land in Kingston’s industrial belt.

“The acquired property is located on East Ashenheim Road and has moved the concentration of assets in Jamaica to 47 per cent…”

Its second purchase since mid-year 2020, KPREIT funded the acquisition from cash resources for the consideration of JM$607.5 million on a sale-leaseback basis.

In July 2020, the company announced the purchase of  Harbour Centre, a multi-story office building in the Cayman Islands, for a consideration of approximately US$10.7 million — its largest acquisition to date.

Harbour Centre in the Cayman Islands. (Photo contributed by Kingston Properties)

The purchase of the Cayman Islands property was financed by cash resources of the company as well as a loan facility from one of its financing partners in that territory.

In relation to the latest acquisition in Kingston, KPREIT CEO Kevin Richards said that the purchase is in keeping with the company’s strategic objective of owning and managing properties totalling one million square feet by 2022.

Kingston Properties CEO Kevin Richards (File photo)

He further added that the purchase of the property came at a significant discount to replacement cost, “which augurs well for future capital appreciation”.

The acquired property is located on East Ashenheim Road and has moved the concentration of assets in Jamaica to 47 per cent, with the Cayman Islands and the US at 41 per cent and 12 per cent respectively.

The company has also been accumulating cash from other property sales.

Earlier in the year, it disposed of the last condo unit held in the Midblock Condominiums in Miami, Florida, for the consideration of US$410,000.  

Midblock Condominiums in Miami, Florida (Photo: KPREIT)

With the disposal, the company fully paid off a loan of US$2.2 million from TerraBank.