Tue | Jul 23, 2024

Mini warehouse units will be ready in a year, says KPREIT

Published:Friday | June 14, 2024 | 12:10 AM

Kingston Properties Limited, KPREIT, says there has been heavy interest from investors in its 14-unit mini warehouse project being built near Cross Ross in Kingston, the execution of which is now expected to begin two to three months later than expected.

CEO Kevin Richards says although the company is focusing on its core business of acquiring distressed properties for refurbishment and rental, it is committed to completing the project at 11 Rousseau Road in the nation’s capital.

“We have a lot of demand for persons who want smaller warehouse units. These units range in size from 700 to 2,500 square feet,” Richards told the Financial Gleaner shortly after the company’s annual general meeting on Wednesday.

The CEO said a feature of the units is that they are modular, meaning that an investor could acquire adjoining units in order to get the amount of space that they need.

There are two levels to the warehouse complex, including a mezzanine level, Richards disclosed.

“We’re looking at smaller small traders who could use these units for a combination of office space and storage”, the CEO said of potential tenants.

The timeline for completion is 10 months, which means it should be completed around June 2025, Richards said.

The project which was slated to commence in May is now expected to start before August.

According to KPREIT’s 2023 annual report, the Rousseau Road complex is the first project being undertaken in Jamaica from the ground up in the company’s 16-year history.

The report said the company was “hitting the major milestones on our first greenfield development project in Jamaica”.

“All approvals have been received from the local authorities to construct this multi-unit small bay warehouse complex at Rousseau Road in Kingston, for which construction is slated to commence May 2024 with our venture partners,” KPREIT said.

KPREIT holds properties for rental or sale in Jamaica and the Cayman Islands, and interest in developments in the states of Florida and Georgia in the United States.

A breakdown of the company’s portfolio by type in its 2023 annual report categorises 45 per cent as value-added, 39 per cent as core/stabilised, eight per cent as real estate partnerships, and eight per cent as greenfield. Value-added refers to properties that needed renovation or refreshment in order to attract better and high-paying tenants; while the core/stabilised category encompasses assets that are new or good condition, with good tenants, and need no changes.