KPREIT acquires Henkel property
Published:Sunday | June 12, 2011 | 12:00 AM
Kingston Properties Limited (KPREIT) has entered into a "definitive agreement with Henkel Jamaica Limited to purchase the properties located at 36-38 Red Hills Road", a deal that will add a third property to the real estate investment trust's portfolio of assets.
The property consists of 47,865 square feet of office and warehouse space across multiple buildings, KPREIT said in a stock market disclosure last week.
But the company said it would not disclose the value of the acquisition until the close of the transaction, which is expected by the end of July.
Part of the agreement is for Henkel Jamaica to lease back roughly 46 per cent of the space, with most of remaining square footage to be rented to corporate tenants.
KPREIT's first acquisition was the Carlton Savannah Hotel in Port-of-Spain, Trinidad, which it exited in 2009 following delays in construction and set-up.
Since then, the company has been actively seeking out other opportunities and now owns a 26,000 square feet warehouse and office space property on Hagley Park Road, along with 16,092 square feet of residential condos in the Miami Loft II complex, which it acquired last year.
KPREIT has earned revenues totalling J$10.4 million from both the Miami Loft II and the Hagley Park Road properties for the three-month period up to March 30, 2011.
Net profit for the three months was $3.2 million versus $3.6 million in the corresponding quarter last year.
revenue generation
"The properties owned by Kingston Properties continue to achieve their objectives as measured by revenue generation and occupancy. The long-term lease at the Hagley Park Road property is performing as expected given the high credit quality of our tenant," said the directors' statement to the first-quarter financial results.
"The condo units at the Miami Loft II are attractive, and their location offers easy access to work, concerts, sporting events, performances, museums, shopping, and more. The units are 100 per cent occupied and are earning market-level rents. All rental payments are current and market demand for the units is good."
KPREIT's investment in properties acquired to date totals J$419.9 million.
The stock, the only one of its class listed in Jamaica and the Caribbean, last traded on the Kingston exchange at J$3.75 million, valuing the company at J$258 million.