Kingston Properties Limited (KPREIT) has expanded its United Kingdom presence with the completion of a third office acquisition, reinforcing its offshore diversification strategy as it advances toward its 2026 performance targets.
The latest addition is a modern three-storey office building located within the Crossways Business Park in Dartford, a well-established commercial zone serving London’s commuter belt. The asset, comprising just over 17,000 square feet, was completed in 2009 and is fully occupied by Kuehne + Nagel Limited, the UK arm of the global logistics heavyweight.
The tenant operates under a long-term lease running through late 2029, structured on a full repairing and insuring basis. This places operational responsibility squarely with the occupier and provides KPREIT with predictable income visibility. The property generates in excess of £400,000 annually in rental income, positioning it as a yield-accretive asset within the portfolio.
KPREIT indicated that the transaction aligns with its focus on infrastructure-supported business parks, institutional-grade tenants, and sectors with durable demand drivers. Logistics, in particular, remains central to global trade flows despite broader macroeconomic headwinds affecting the UK economy.
While the final purchase price will be confirmed in the company’s upcoming audited financial statements, the acquisition was financed using a combination of debt and equity, consistent with KPREIT’s capital deployment framework.
The move follows the establishment of KPRE (UK) Limited in early 2024, which has since executed a disciplined rollout into regional UK office markets. Prior purchases in Bristol and Dorking brought the group’s total UK footprint to just over 50,000 square feet, with the region now accounting for roughly 16 per cent of KPREIT’s overall portfolio.
Jamaica remains the group’s largest geographic exposure, followed by the Cayman Islands, while the United States represents a smaller allocation. Across all markets, KPREIT closed 2024 with more than half a million square feet of completed buildings and a sizable land bank.
Strategically, management continues to target dislocations in overseas real estate markets, particularly those arising from economic uncertainty in the post-Brexit environment. Despite measurable impacts on UK growth, the country retains strategic relevance for logistics, distribution, and multinational corporate operations—factors KPREIT views as supportive of long-term asset performance.
On the financial front, the company is pursuing an ambitious growth agenda aimed at reaching US$100 million in assets under management or ownership and generating US$2 million in funds from operations by the 2026 financial year. As of the most recent reporting period, consolidated assets stood just shy of that threshold.
Domestically, KPREIT continues to invest in development projects, including a joint-venture mini-warehouse facility slated for completion in early 2026. The group has also secured shareholder approval for a future additional public offering, potentially denominated in foreign currencies, to further strengthen its balance sheet and fund expansion.
Operationally, rental income has been trending upward, supported by new acquisitions and improved occupancy. While earnings have been affected by valuation adjustments and rising finance costs linked to expansion, core cash generation metrics continue to show momentum.
KPREIT’s shares last traded at $9.40, broadly in line with year-end levels, reflecting a market capitalisation of approximately $8.3 billion as investors weigh near-term earnings volatility against the company’s long-term growth trajectory.
