Kingston Properties Limited (KPREIT) has raised approximately $650 million from a recent Rights Issue. Over 100 subscribers, including pension funds and other large institutions, have given Kingston Properties a stamp of approval despite strong competition from other offerings in the capital market. This gives the company the green light to pursue expansion plans in various real estate markets in the United States and Caribbean countries where rental income and occupancy levels are strong.
Chairman- Kingston Properties Limited
Mr. Garfield Sinclair, Chairman of the Board of KPREIT, indicated that he was pleased with the vote of confidence from investors, which strengthens Kingston Properties' capital base and provides it with the means to acquire additional properties. The Rights Issue also met the objective of widening the shareholder base. Mr. Sinclair said the Board and management thanked all of the participating shareholders for their vote of confidence and promised to continue their diligent stewardship of the company. He noted, however, the non-participation of the company's largest shareholder, whose partaking would have resulted in an over-subscription.
"The commitment from the overwhelming majority of our largest shareholders to this Rights Issue confirms the market view of KPREIT as a solid investment option. Over 100 investors participated in the offer including sophisticated pension fund investors who continue to see long-term opportunities for real value creation and capital appreciation in KPREIT," the Chairman explained.
Jamaica Money Market Brokers (JMMB) was appointed lead brokers for the offer which opened on Wednesday, July 22. An extension of one week was granted to accommodate investors who required additional time. The offer closed on Friday, August 7. KPREIT thanks JMMB for the partnership and the work done to make this capital raising a success.
Executive Director Kingston Properties Limited
Fayval Williams, Executive Director of KPREIT, said the company is committed to providing value for investors through strategic management of its real estate portfolio. Investors are to benefit as KPREIT provides diversification away from other more traditional asset classes. Investors will also benefit from the expected USD dividends which provide a good hedge against any potential currency devaluation.
KPREIT has created significant value for shareholders over its seven-year history. This is reflected in the 112% growth in shareholders equity since the initial IPO in 2008 and the 14% annual growth in USD dividends from US$0.0016 per share in 2009 to US$0.0029 per share in 2014.
The company currently owns 15 units in the Miami Loft II condominium building as well as a 19-unit residential complex in 'Little Havana', South Florida and a mixed-usage (office and warehouse) complex in Jamaica.