Keppel-KBS US REIT to buy US business campus for $231.43m
The Westpark Portfolio in Seattle has an occupancy rate of 97.7%.
Keppel-KBS US REIT is set to acquire the $231.43m (US$169.4m) Westpark Portfolio which is a business campus comprising of 21 freehold buildings in Seattle, an announcement revealed.
Located in Redmond, the Westpark Portfolio is within the strong performing Eastside office market in Seattle-Tacoma-Bellevue Metropolitan Statistical Area (Seattle MSA). The firm has two other properties in the area including The Plaza Buildings and Bellevue Technology Center.
Seattle MSA is exposed to good accessibility and is supported by an excellent retail and amenity base as it has seen positive leasing demand in recent years due to limited new quality office inventory. Microsoft Corporation and Nintendo of America’s headquarters are also found in Redmond, making it a key technology hub.
“This will allow the REIT to capitalise on strong leasing demand from the technology and professional services sectors in a supply-constrained market, with limited sites available for competitive new development,” Keppel-KBS US REIT CEO and CIO David Snyder said.
According to Sndyder, Seattle is one of the strongest office markets in the United States, which will give the REIT benefits from steady rent growth of approximately 4% by 2020.
Since the acquisition in February 2016 by KBS SOR, the Westpark Portfolio has undergone repositioning and extensive capital improvements, including the conversion of underutilised space to an amenities centre.
Amongst the tenants of the Westpark Portfolio are Oculus VR which is an American technology company backed by Facebook. The property has a committed occupancy of 97.7% and has a weighted average lease expiry of 4.3 years.
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