KPREIT buys three new Miami condos PDF Print E-mail

Kingston Properties Limited (KPREIT) announced on Friday that it has closed on the acquisition of three condo units at Opera Tower in the downtown Miami area as part of the 1031 Exchange programme in the US.

The 1031 Exchange programme allows property owners to defer capital gains tax when the registered property is sold. The acquisition now brings the total number of residential units held by KPREIT to 27.

The company also said in a notice placed through the Jamaica Stock Exchange (JSE) that it has engaged bankers to secure financing for its programme of acquisition going forward.

The notice to the JSE on April 29 said that the company has engaged bankers both locally and overseas to secure financing for its programme of property acquisitions going forward.

A total of US$4.5 million has been approved and available for deployment in the local, regional and international markets in keeping with KPREIT's diversification strategy.

In Bayshore, Fort Lauderdale, the company has four residential condos which were purchased in the latter part of last year – October 2015.

KPREIT in final quarter 2015 sold an apartment building it owned at 555 SW 4th St, in a section of Miami, Florida known as "Little Havana", in December 2015. The property was offloaded for US$2.19 million or the equivalent of $262 million.

Kevin Richards, new KPREIT CEO, told the Jamaica Observer in April that an advantage in operating in the US is their 1031 exchange programme, which allows an investor to defer the capital gains tax from the disposal of an asset, with specified restrictions.

"For example, we purchased an apartment building in Miami in 2014, sold it in December 2015, and will be reinvesting the proceeds shortly under the same programme to benefit from this programme," he explained.
Read More

Source: Observer