Keppel-KBS US Reit buys second office property in Florida for US$48.5m

SINGAPORE - Keppel-KBS US Reit's manager announced on Tuesday that it will be acquiring Maitland Promenade I, an office property located in the Maitland submarket of Orlando, Florida, for US$48.5 million (S$66.7 million) from The Realty Associates Fund X.

Maitland Promenade I will be Keppel-KBS US Reit's second asset in Florida and is adjacent to Maitland Promenade II, which the Reit currently owns.

Maitland Promenade I has a net lettable area of 230,371 square feet, with a committed occupancy rate of 98.1 per cent as at Oct 25, 2018. The property has easy access to the Interstate 4 (I-4), providing short drive times to Orlando International Airport, the central business district and residential developments in nearby Winter Park.

The acquisition is part of the Reit's strategy to grow its portfolio by acquiring quality income-producing properties in "first choice submarkets with positive macroeconomic and office fundamentals", said David Snyder, chief executive and chief investment officer of the manager.

"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," he said. "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, when completed in January 2019, will improve committed portfolio occupancy from 90.1 per cent to 91.9 per cent and bring total assets under management to US$1.04 billion.