Kingston Properties Limited (KPREIT) Acquires First UK Property

  • Kingston Properties Limited (KPREIT) closed on the acquisition of a 20,000 sqft fully tenanted office building in Bristol, United Kingdom on December 12, 2024. This marks the Group’s first acquisition in the UK and is part of its strategy of pursuing greater geographic diversification.
  • The property is located in the Aztec West Business Park just north of Bristol – the fifth largest city in the UK, which attracts players in the aerospace, defense, 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.
  • According to the Organisation for Economic Cooperation and Development (OECD), UK’s GDP growth is projected to strengthen to 1.7% in 2025, boosted by the large increase in public expenditure set out in the autumn budget, before slowing to 1.3% in 2026, as the effect of fiscal expansion tapers off.
  • The sub-urban small office sub sector 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, and service office providers to one of the largest suppliers of affordable housing and care in the UK.
  • The rapid growth of the service or flexible office industry since the pandemic signals the direction of the office for the future and bodes well for the continuing demand for office space.
  • This acquisition was funded using both debt and the proceeds from the sale of units at Tropic Centre in the Cayman Islands and now brings the geographic dispersion of assets to: Cayman Islands (45%), Jamaica (42%), UK (7%) and US (6%).
  • KPREIT’s stock price has increased 22.9% since the start of the calendar year. The stock closed Thursday’s trading session at $9.59 and currently trades at a P/E of 10.2x, which is below the Main Market Real Estate Sector Average of 10.3x.

(Sources: JSE & NCBCM Research)