Real Estate

Kingston Properties CEO Kevin Richards (File photo)

Kingston Properties proposes share capital increase

Kingston Properties CEO Kevin Richards (File photo)

Kingston Properties Limited (KPREIT) has advised it is considering doubling the number of the company’s ordinary shares as a prelude to going to the market with an additional public offer (APO).

Kingston Properties CEO Kevin Richards

The company gave notice via the Jamaica Stock Exchange yesterday, that at a meeting of its Board of Directors held on October 27, it agreed to recommend to shareholders that the maximum number of authorised shares of the company be increased from 1,000,000,000 ordinary shares to 2,000,000,000 ordinary shares.

KPREIT further advised that the recommendation is in keeping with its strategic plan to substantially increase the equity base of the company, and will facilitate the company’s return to the equities market to raise funding, which will include an additional public offering in the near future, subject to the approval of its shareholders being obtained.

KPREIT said in its notice, “The Board intends to convene an extraordinary general meeting in due course (subject to, and in compliance with, the prevailing restrictions contained in the orders under the Disaster Risk Management Act), where the  among matters to be put to shareholders for  consideration will be the  proposed increase in the maximum number of authorised shares.

Shareholders will also be asked to approve an additional public offering of new ordinary shares and the amendment of the company’s articles to allow for electronic meetings.

The company has, among its objectives, a target of one million square feet of real estate under management.

In October, KPREIT announced that it had completed the acquisition an 88,000 square foot warehouse property on four acres of land in Kingston’s industrial belt.

Company CEO, Kevin Richards, said the purchase was in keeping with the its strategic objective to achieve a target of one million square feet owned and under management by 2022.

The purchase was funded from cash resources for a consideration of $607.5 million on a sale and leaseback basis.
It is the second purchase since mid-year 2020.

In July 2020, the company announced the purchase of Harbour Centre, a multi-story office building in the Cayman Islands.

This property was acquired for a consideration of approximately USD10.7 million, the largest acquisition by KPREIT.