Kingston Properties Limited (KPREIT) has successfully refinanced its loan facilities in the Cayman Islands and upsized total borrowings to acquire a 20,000-square-foot, fully tenanted office building in the Aztec West Business Park in Bristol, United Kingdom.
This acquisition marks the first entry into the UK market and aligns with the group’s strategic vision of expanding its geographic footprint and diversifying its investment portfolio.
KPREIT’s move into the UK reflects confidence in the country’s economic outlook, with projected growth in 2025 driven by increased government spending and anticipated interest rate cuts.
The acquisition was supported by a senior secured term facility totalling US$21 million provided to KPREIT (Cayman) Limited, a member of the Kingston Properties Group, by CIBC Caribbean. The facility was used to refinance the existing term debt held with another financial institution, which was originally used to finance commercial property acquisitions by the group and new financing to fund the acquisition of the Aztec West property in the UK.
The facility allowed KPREIT to not only reduce group-wide funding costs but also to increase borrowings to expand the portfolio, while maintaining prudent leverage ratios. Group total debt as a percentage of total assets as at December 2024 stood at 39 per cent while total debt to equity stood at 65 per cent.
This ratio is below the standard for diversified REITs, such as KPREIT, according to the National Association of Real Estate Investment Trusts (NAREIT) and favourable to a composite of international REITs tracked by Kingston Properties Limited.
Kevin Richards, CEO of Kingston Properties Limited, expressed enthusiasm about the expansion.
“We are thrilled to continue to partner with CIBC in executing on our growth strategy and particularly as we enter the UK market with this strategic acquisition. Both the KPREIT and CIBC Caribbean teams worked tirelessly to get this deal done. As we expand into new markets, we remain committed to creating value for our shareholders.”
CIBC Caribbean has played a key role in supporting KPREIT’s expansion, providing financing that enabled several acquisitions including the recent UK deal. The bank remains committed to facilitating impactful investments across the region and beyond.
“We are proud to partner with Kingston Properties Limited on the refinancing of their existing borrowings in the Cayman Islands and to facilitate this ground-breaking acquisition. This venture demonstrates how strategic investments can create significant value and drive growth in emerging markets. CIBC Caribbean remains dedicated to providing tailored financial solutions to support our clients’ goals,” said Annique Dawkins, Associate Director Corporate Banking at CIBC Caribbean Jamaica.
“This transaction highlights KPREIT’s forward-thinking approach and CIBC Caribbean’s ability to deliver innovative financing solutions that support geographic and sectoral diversification. We are honoured to collaborate on this milestone achievement,” added Gillian Charles Gollop, Executive Director, Corporate Banking and Sustainable Finance, CIBC Caribbean.
