Kingston Properties Limited (KPREIT) entered into an agreement with a developer to acquire three of four pre-construction units in a mixed-use industrial development in the Cayman Islands called Gum Tree 5.
In a statement, KPREIT indicated that an agreement was reached last Thursday (September 9), and the units are slated for completion in October 2022 being acquired for a consideration of approximately US$3.13 million.
“The acquisition of these units is a part of our strategic plan to diversify our holdings in different jurisdictions and our thrust to increase our holdings in industrial properties,” said Kevin Richards, CEO of Kingston Properties Limited.
“In 2019, we established three strategic imperatives, one of which was to increase the square footage under ownership or management to one million square feet and this acquisition just took us a step closer,” he added.
This is the second mixed-use industrial property acquisition by KPREIT in the Cayman Islands, and the fourth property purchase in that jurisdiction over the last five years.
“With the growth in e-commerce in recent years and the surge in demand for goods during lockdown periods, there has been a steep rise in the demand for warehouse and mixed-use properties globally and especially in Cayman Island,” Richards disclosed.
KPREIT has an option to acquire the fourth unit at the completion date.
For the six months ended June 30, 2021, KPREIT reported a 59 per cent year-on-year increase in rental revenue to US$1.4 million while net profit amounted to US$927,202 in 2021 compared to a loss of US$343,397 in 2020.