KPREIT buys five Miami properties
KINGSTON Properties (KPREIT) spent US$5.3 million to purchase five properties in Miami, USA with funds it raised from its rights offer, according to Director Fayvall Williams.
It results in the continued investment in US real estate by the company listed on the Jamaica Stock Exchange.
The marquee property includes a US$2.2-million complex in midtown Miami at 3301 NE 1st Avenue, and four condominium apartments for a total of US$3.1 million at the residences at W Fort Lauderdale, a luxury hotel located close to Ft. Lauderdale’s vibrant Downtown, Las Olas and Riverfront Place.
“These fully furnished apartments have access to spa services, a fitness centre, swimming pools, ocean-front dining, miles of sandy beachfront, and the full complement of services that the five-star W hotel offers,” Williams explained in a release about the property.
Rental demand in Miami remains strong with year-on-year increase in the 8.0 to 9.0 per cent range. Also condo prices have risen approximately 8.0 per cent year-on-year, stated Williams in the release.
KREIT explained that Miami is viewed as one of the fastest-growing cities in the US, with a projected 14 per cent increase in population growth between 2015 and 2020.
Development projects include the US$2.3-billion Fort Lauderdale airport improvements and renovations programme, scheduled to be completed by 2017, that is expected to add significantly to the Fort Lauderdale economy and the US$78 million for redeveloping Fort Lauderdale beach. The tourist industry is a mainstay to the Fort Lauderdale economy.
KREIT raised J$650 million from its rights offer. In July, the company launched a rights issue hoping to raise J$954 million for the acquisition of Cayman-based Park Place condominiums along with four United States locations, the proceeds of which would be used to finance the combined investment of US$35 million.
KPREIT also owns 15 units in the Miami Loft II condominium building, as well as a 19-unit residential complex in South Florida, and an office and warehouse complex in Jamaica.
