Kingston Properties enters UK real estate market

Kingston Properties Limited (KPREIT) has announced its acquisition of a 20,000-square-foot office building in Bristol, United Kingdom, marking its fourth business territory.

“This marks the group’s first acquisition in the UK, and it is part of a strategy of greater geographic diversification,” said the company in a release.

The acquisition price was not disclosed, but it adds to KPREIT's US$77.5 million in total assets held to September 2024, the bulk of which relate to real estate.

The newly acquired property is located in Aztec West Business Park, a prominent area just north of Bristol, the UK’s fifth-largest city.

Bristol is recognised as a hub for industries such as aerospace, defence, engineering, financial services, and media, making the acquisition a well-placed addition to KPREIT’s portfolio.

“This acquisition was funded using both debt and the proceeds from the sale of units at Tropic Centre in the Cayman Islands,” said the company in a release.

Cayman Islands still makes up the bulk of its assets allocation at 45 per cent, followed by Jamaica at 42 per cent, the UK at seven per cent, and the US at six per cent.

The office building is fully tenanted with occupants ranging from insurance and shipping companies to flexible workspace providers and affordable housing organisations. KPREIT’s optimism about the UK market is driven by the resilience of suburban office spaces, buoyed by campaigns encouraging a return to office environments post-pandemic. The growing demand for flexible office arrangements signals a positive trend for long-term occupancy rates.

KPREIT remains bullish on the UK market, citing anticipated economic growth in 2025 driven by increased government spending and continued reductions in interest rates. The company sees significant opportunities in the expanding suburban office segment, further enhanced by Bristol’s strategic location and thriving business ecosystem.

This acquisition highlights KPREIT’s commitment to strengthening its global footprint while capitalising on emerging trends in real estate markets.