Black Immigrant Daily News
Victoria Mutual Investments Limited (VMIL) has acquired 135,483,871 units of Kingston Properties (KPREIT) shares for a combined consideration of $1.05 billion.
This transaction increases VMIL’s stake in KPREIT to a total of 23 per cent, making KPREIT an associate company of VMIL.
VMIL will now have an opportunity to diversify its real estate investments outside of Jamaica, based on KPREIT’s expansive portfolio in other Caribbean jurisdictions and North America.
Meanwhile, its most recent acquisition on the island is the September 2022 acquisition of a business process outsourcing (BPO) property in Montego Bay, St James for US$18 million ($2.7 billion). The building at Megabyte Drive at Barnett Tech Park spans 80,000 square feet and is currently tenanted by US outsourcing firm Conduent Solutions.
VMIL had indicated that it is bullish on real estate investments amidst rising inflation, as that asset class is “expected to outperform compared to equity and fixed income”.
Commenting on the latest purchase of KPREIT shares, VMIL said the transaction is in line with the VM Group vision of being a leading Caribbean-based, member-focused organisation that transforms lives by advancing individuals’ financial well-being globally.
VMIL expects to benefit from dividend income as well as participation in the strategic direction of KPREIT, from now on.
With the acquisition of the additional shares, VMIL’s 23 per cent stake in KPREIT will result in the company reporting a profit share.
The addition of KPREIT to the VMIL portfolio adds significant strength to its balance sheet and enhances its business development capacity, VMIL said in a statement.
VMIL is the parent company of VM Wealth Management Limited, which manages one of the largest real estate unit trusts, VMWealth Classic Property Portfolio, valued at $9 billion.