Kingston Properties Limited (KPREIT) announced the closure of its acquisition of a 20,000-square-foot fully tenanted office building in Bristol, United Kingdom (UK), on Thursday, December 12.

For KPREIT, this marks the group’s first acquisition in the UK and it’s part of a strategy of greater geographic diversification. The property is located in the Aztec West Business Park just north of Bristol — the fifth-largest city in the UK that attracts players in the aerospace, defence, engineering, financial services, media, and environment services industries.

“KPREIT is bullish on the UK and expects the economy to see growth in 2025 with increased government spending and continuing interest rate cuts,” the real estate investment company outlined in a press release.

“The suburban small office subsector continues to show resilience and is expected to continue to see growth with the campaign for a return to the office in the UK. The tenants in the building range in services from insurance, shipping, service office providers and one of the largest suppliers of affordable housing and care in the UK.”

KPREIT cites the rapid growth of the service or flexible office industry following the COVID-19 pandemic as the reason for securing the property, noting that it “signals the direction of the office for the future and bodes well for the continuing demand for office space”.

The company funded the acquisition using debt and the proceeds from the sale of units at Tropic Centre in the Cayman Islands. The new property brings the geographic diversification of assets to Cayman Islands (45 per cent), Jamaica (42 per cent), UK (7 per cent), and US (6 per cent).