Kingston Properties Limited (KPREIT) acquires new property in Jamaica
- KPREIT, on October 11, 2021, completed the acquisition of an approximately 1.5-acre property in the Cross Roads area that will be developed to house small bay warehouse units. This continues KPREIT’s thrust to increase its holdings of industrial properties in the jurisdictions in which it operates. The property was acquired for a consideration of J$75Mn.
- The purchase follows the company’s recent agreement with a developer in the Cayman Islands to acquire three mixed-use units and last year’s acquisition of an approximately 88,000 sq. ft. warehouse property in the industrial belt of Kingston, Jamaica.
- For the six months ended June 30, 2021, KPREIT reported a 59% year on year increase in rental revenue to US$1.4Mn, while net profit amounted to US$927,202 in 2021 versus a loss of US$343,397 in the prior year.
- If the expected benefits from these investments materialize, KPREIT’s revenue generation, bottom-line, and valuation will likely increase. The local industrial real estate sector, at large, is also expected to benefit from increased and possibly higher prices and rental yields, as companies invest in warehouses and logistics centres, to facilitate consumer demand and take advantage of opportunities
(Source: JSE News & NCBCM Research Team)