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Keppel-KBS US REIT has agreed to purchase an office property within the Maitland submarket of Orlando, Florida for US$48.5 million (S$66.8 million).
Keppel-KBS US REIT Management revealed that Maitland Promenade I will be the REIT’s second asset in Florida.
Located adjacent to Maitland Promenade II, which is currently owned by Keppel KBS US REIT, Maitland Promenade I has a net lettable area of 230,371 sq ft and a committed occupancy rate of 98.1 percent as at 25 October. It is set to be completed in January next year.
Keppel-KBS US REIT Management expects the addition of Maitland Promenade I to improve the REIT’s committed portfolio occupancy to 91.9 percent from 90.1 percent, bringing total assets under management to US$1.044 billion (S$1.4 billion) from US$826.1 million (S$1.14 billion).
“The acquisition delivers on our strategy to grow Keppel-KBS US REIT’s portfolio by acquiring quality income-producing properties in first choice submarkets with positive macroeconomic and office fundamentals,” said David Snyder, CEO and CIO of Keppel-KBS US REIT Management.
“The addition of Maitland Promenade I extends Keppel-KBS US REIT’s foothold in the strong Maitland office submarket, highly sought after by technology, finance and insurance companies for its excellent amenities and good infrastructure. As the owner of two buildings – Maitland Promenade I and II, we will now have the flexibility to move tenants within the two assets, catering to our tenants’ varying space requirements.”
The acquisition will be funded with proceeds from debt financing, added the REIT’s manager.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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