Kingston Properties Limited offers rights issue for expansion

Kingston Properties Limited will seek to improve and expand its Caribbean and North American real estate holdings with the funds raised from the rights issue beginning November 18.
The real estate company is chaired by Garry Sinclair and led by CEO Kevin Richards.

“We have been geographically diversifying into growing economies, which continues to pay off, with net operating income rising by 23 per cent year on year up to June 30, 2019 to $46.8 million and Earnings before Interest and Taxation for the same period showing an increase of 154% to $61.3 million. Our core investment strategy for this rights offer will be focused on office and warehouse properties in Jamaica and in the Cayman Islands. We believe that our experience in these markets and investing in these asset sub-classes will provide us with the best medium to long term risk adjusted returns,” explained Sinclair in the offer prospectus.

Shareholders in Kingston Properties Limited (KPREIT) will be given the right to purchase an additional 1.10573 new shares to every existing share registered in their name at the record date, subject to rounding the resulting number of new shares up or down to the nearest whole number to eliminate fractional shares.

Sinclair added, “The current round of fundraising will be focused on a number of properties in both Jamaica and the Cayman Islands that we believe will allow us to achieve our strategic objectives. We have identified as possible acquisition targets a compelling portfolio of properties in the Cayman Islands covering the fast growing Seven Mile Beach stretch; the re-emergent George Town office district; and the ever-expanding industrial area with close proximity to the recently expanded and upgraded Owen Roberts International Airport. In Jamaica, we continue to focus on commercial real estate opportunities, especially in the warehousing sphere, where we have experienced the greatest demand.” Read more