In a notice on the Jamaica Stock Exchange (JSE) website today, Kingston Properties Limited (KPREIT) announced its most expensive acquisition to date in Harbour Centre, a multi-story office building in the Cayman Islands.
“The purchase of the property is part of KPREIT’s strategy to continue to diversify its holdings into markets that have shown robust economic growth and into different sub-classes of real estate.”— Kingston Properties Real Estate Investment Trust
Purchased with approximately US$10.7 million, the acquisition of the Cayman Islands property would be its third such transaction in that country since January 2017 and the single-largest acquisition in its twelve-year history.
The company further revealed that it undertook the transaction with a combination of its cash resources and a loan facility from one of its financing partners in the British overseas territory.
In the notice on the JSE’s website, KPREIT wrote: “The purchase of the property is part of KPREIT’s strategy to continue to diversify its holdings into markets that have shown robust economic growth and into different sub-classes of real estate.”
What’s more, Harbour Centre is 100 per cent occupied with lessees (tenants) that operate in sectors including banking and funds administration, law, real estate investment, government, and retail.
With the acquisition of Harbour Centre, KPREIT has increased its concentration of assets in the Cayman Islands to from 21.9 per cent to 46.5 per cent.
At the same time, the real estate management company disclosed that it has reduced its asset concentration in the United States to 13.2 per cent after completing the sale of a property in Florida.
“KPREIT has also disposed of the last condo unit held in the Midblock Condominiums in Miami, Florida for a consideration of USD410,000. That sale was in keeping with the strategy of disposing of condos held in the South Florida market to acquire properties in markets or in property subclasses that generate a higher return on investment,” the company stated.
“With this disposal, the original loan of US$2.2 million from TerraBank has now been fully paid out,” the statement continued.