Keppel-KBS US REIT has entered a deal to acquire Maitland Promenade I, an office property near Orlando, Florida, from The Realty Associates Fund X for US$48.5 million, the REIT’s manager said in a filing to SGX before the market open on Tuesday.
The property, which would be Keppel-KBS US REIT’s second in Florida, is adjacent to its first in the area, Maitland Promenade II, the filing said.
David Snyder, CEO and CIO of the REIT manager, Keppel-KBS US REIT Management, said the acquisition was in line with its strategy of seeking acquisitions in “first choice submarkets” with positive economic fundamentals.
“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,” Snyder said in the statement. “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.”
Maitland Promenade I is located near the Orlando International Airport and the central business district, it said.
The property has a net lettable area of 230,371 square feet, with a committed occupancy rate of 98.1 percent as of late October, it said.
The acquisition is expected to be completed in January 2019, it said.
Once the deal is completed, the REIT’s committed portfolio occupancy will rise to 91.9 percent from 90.1 percent and its assets under management will increase to US$1.044 billion from US$826.1 million, the filing said.
Prior to the acquisition, Keppel-KBS US REIT had 11 office properties in seven U.S. markets, it said.
This article was originally published on Tuesday 27 November 2018 at 8:09 A.M. SGT; it has since been updated.