US Market
Kingston Properties Limited, KPREIT, has been forced to write off a US$1.38-million investment following the foreclosure on a United States-based real estate asset, marking a rare setback for the real estate investment trust.
The company disclosed that its equity interest in Polaris at East Point Partners LLC – a 118-unit multifamily property in East Point, Atlanta – has been wiped out after the property was seized by its lender. The foreclosure was confirmed by Apex Development Group LLC, the manager of the investment, on September 5.
Kingston Properties CEO Kevin Richards said the company has a 36 per cent stake in the development, but was not involved in managing it.
“This is a limited partnership investment. We were not involved in the day-to-day operations,” Richards said in an interview with the Financial Gleaner.
KPREIT entered the partnership with Apex in July 2022 through its US subsidiary, Kingston Properties Miami LLC. The acquisition was part of a broader strategy to deepen KPREIT’s US operations, with the Polaris property purchased for US$12.7 million and financed through a mix of debt and equity