Kingston Properties Limited (KPREIT) has spent a total of $576 million on its most recent acquisitions in Jamaica and the Cayman Islands.
The properties, purchased in January, are already yielding results for the company based on an overall increase of 58.6 per cent or $37.4 million more in Group rental income for the six months ended June 2017, compared to $63.7 million posted a year earlier.
“This performance continues to be driven by steady growth in income from our property portfolio in the US, Jamaica, and the Cayman Islands,” chairman of the company, Garfield Sinclair, said in notes accompanying the just released financial results of the Group.
The two properties also contributed to higher year over year rental revenue. According to the company, approximately 51 per cent of the Group’s rental revenue up to June 30, 2017 was generated in the US, down from 60 per cent last year due largely to the shift in focus to property markets outside of the US.
KPREIT financials show that the company invested $362.6 million on the Tropic Centre property in Cayman and another $212.3 million on the commercial complex, located at Spanish Town Road, Kingston, Jamaica.
Both properties were partially financed by the National Commercial Bank with tenure of 15 years each at an interest rate of 9.85 per cent per annum, for loans amounting to $160,034,400 and $118,265,600 respectively.
“The loans are secured by promissory notes and loan agreements for senior secured amortising loan for $160,034,400 and 118,265,600, first legal mortgage over commercial property located at 36-38 Red Hills Road, Kingston, in the name of Kingston Properties Ltd and letter of subordination,” Sinclair said.