11/27/2018 | Press release | Distributed by Public on 11/26/2018 17:46
Keppel-KBS US REIT Management Pte. Ltd., as Manager of Keppel-KBS US REIT, announced today that Keppel-KBS US REIT1 has entered into an agreement with The Realty Associates Fund X, L.P., to acquire Maitland Promenade I, an office property located in the Maitland submarket of Orlando, Florida.
Maitland Promenade I will be Keppel-KBS US REIT's second asset in Florida and is adjacent to Maitland Promenade II, which the REIT currently owns. The purchase consideration for the property is US$48.5 million, and was negotiated on a willing-buyer and willing-seller basis.
Maitland Promenade I has a net lettable area of 230,371 sq ft, with a committed occupancy rate of 98.1% as at 25 October 2018. The property has easy access to the Interstate 4 (I-4), providing short drive times to the Orlando International Airport, the central business district and residential options in the nearby Winter Park. It is also positioned on easy transit routes and is close to the recently completed I-4 Maitland Boulevard interchange.
Mr David Snyder, CEO and CIO of the Manager, said, 'The acquisition delivers on our strategy to grow Keppel-KBS US REIT's portfolio by acquiring quality income-producing properties in first choice submarkets with positive macroeconomic and office fundamentals.
'The addition of Maitland Promenade I extends Keppel-KBS US REIT's foothold in the strong Maitland office submarket, highly sought after by technology, finance and insurance companies for its excellent amenities and good infrastructure. As the owner of two buildings - Maitland Promenade I and II, we will now have the flexibility to move tenants within the two assets, catering to our tenants' varying space requirements.'
The addition of Maitland Promenade I, when completed in January 2019, will strengthen Keppel-KBS US REIT's overall portfolio, improving committed portfolio occupancy2 from 90.1% to 91.9%3 and bringing total assets under management to US$1,044.0 million3 from US$826.1 million2.
Please refer to the Manager's SGX announcement for more details.
1Through its indirect wholly-owned subsidiary, KORE Maitland Promenade I, LLC.
2As at 30 September 2018.
3Includes the acquisition of Westpark Portfolio, which is expected to be completed by the end of November 2018.
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Download - SGX announcement
About Keppel-KBS US REIT (www.kepkbsusreit.com)
Listed on 9 November 2017 on the mainboard of the Singapore Exchange Securities Trading Limited, Keppel-KBS US REIT ('KORE') is a distinctive office REIT with properties located in key growth markets of US. The REIT's investment strategy is to principally invest in a diversified portfolio of income-producing commercial and real estate assets in key growth markets of the US to provide sustainable distributions and strong total returns for Unitholders.
Prior to the acquisition of the Westpark Portfolio and Maitland Promenade I, KORE's portfolio comprises a balanced mix of 11 office properties located in seven key growth markets across US. With an aggregate NLA of 3.2 million square feet, these quality properties have a diversified tenant base led by tenants in the growth and defensive sectors such as technology, finance and insurance, professional services, as well as medical and healthcare.
The assets in the West Coast are The Plaza Buildings and Bellevue Technology Center, both located in Seattle, Washington, as well as Iron Point in Sacramento, California. In the Central region, the assets are Great Hills Plaza and Westech 360 in Austin, Texas; and 1800 West Loop South and West Loop I & II in Houston, Texas; and Westmoor Center in Denver, Colorado. In the East Coast, the REIT owns Powers Ferry and Northridge Center I & II in Atlanta, Georgia and Maitland Promenade II in Orlando, Florida.
Keppel-KBS US REIT is managed by Keppel-KBS US REIT Management Pte. Ltd., which is jointly owned by two reputable Sponsors, Keppel Capital Holdings Pte. Ltd. (Keppel Capital) and KBS Pacific Advisors Pte. Ltd. (KPA).
For more information, please contact:
Deputy General Manager
Group Corporate Communications
Tel: (65) 6413 6425
Email: [email protected]
Tel: (65) 6803 1739
Email: [email protected]
This media release is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of- any securities of Keppel-KBS US REIT in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.
The value of the Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager, Perpetual (Asia) Limited, in its capacity as trustee of Keppel-KBS US REIT, Keppel Capital Holdings Pte. Ltd. and KBS Pacific Advisors Pte. Ltd., as the sponsors of Keppel-KBS US REIT or any of their respective affiliates.
An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. Holders of Units ('Unitholders') have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the 'SGX-ST'). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.
This announcement is not to be distributed or circulated outside of Singapore. Any failure to comply with this restriction may constitute a violation of United States securities laws or the laws of any other jurisdiction.