KPREIT liquidates four condos, buys new building
Kingston Properties Limited (KPREIT) has now sold four residential condominiums in Miami valued at approximately US$980,000 as it seeks to finance the purchase of another set of apartments in that same United States (US) city.
In May the company advised the Jamaica Stock Exchange (JSE) that it had sold the first of the units for US$200,000 to obtain cash for the new acquisition. That sale was brokered through the company's subsidiary Kingston Properties Miami LLC.
"This decision is part of a broader plan to sell a total of four units and reinvest the proceeds in a 19-unit residential apartment building in an area of Miami that is close to its downtown and is beginning to see a renaissance," the company said its May advisory to the Jamaica Stock Exchange.
The condos were part of a slate of 19-units held by the company on different floors of the Miami building.
KPREIT said it realised cumulative gains of 69.5 per cent from the condos over four years of ownership, while it netted a 34 per cent total return on the sale of the first one bedroom unit.
The company has reinvested the net proceeds in a 19-unit residential apartment building, purchased for US$1.88 million.
The condos sold by KPREIT were acquired in 2010, during the economic downturn. The real estate company said the assets performed at 95 per cent occupancy, with rental increases of three to five per cent annually.
With the recovery of the US real estate market, the company says it is now hoping to tap the recovering residential market in downtown Miami.