Jamaica Stock Exchange-listed Kingston Properties Limited has acquired the Harbour Centre, a multi-story office building on North Church Street in George Town, for US$10.7 million.
It is the first acquisition KPREIT has made in Cayman since 2017.
The property is 100% leased to firms in the sectors of banking and funds administration, law, real estate investment, government, and retail.
The company said the purchase of the property is part of KPREIT’s strategy to diversify its portfolio in markets that have shown robust economic growth and different sub-classes of real estate.
The company said Cayman’s Economic Substance Law passed in January 2019 has increased the demand for commercial office space by companies that need to demonstrate a physical presence on island.
The US$10.7 million purchase price for the Harbour Centre makes it the single largest acquisition by KPREIT in its 12-year history. The purchase was financed by cash resources, as well as a loan facility from one of KPREIT’s financing partners in the Cayman Islands.
The company has also disposed of the last condo unit held in the Midblock Condominiums in Miami, Florida, for a consideration of US$410,000 in an effort to focus on markets that generate a higher return on investment, KPREIT stated in a press release.
The Harbour Centre acquisition has grown the company’s concentration of assets in the Cayman Islands from 21.9% to 46.5%, while the concentration of assets in the US dropped to 13.2% from 20.5%.
The company has previously bought a mixed-use building in the West Bay Beach South area and eight warehouses in the Rosedale Warehouse Complex in George Town.