Singaporean REIT Snags $550M Office Portfolio Refi

Singapore-based Prime US REIT scored a $550 million refinancing for its 13-property office portfolio across the United States, the Commercial Observer reported. The real estate investment trust’s portfolio spans 4.2 million square feet and touches a dozen states in the nation. Portfolio asset manager KBS assisted in securing the debt.

A group of lenders led by Bank of America provided the financing. The deal is split between a $400 million term loan and a $150 million revolving credit facility. The portfolio is valued at $1.3 billion.

Prime US chief financial officer Cindy Teo said the liquidity infusion will allow the REIT to invest in capital improvements across the portfolio.

The properties are considered Class A offices, which is part of their appeal, KBS chief executive officer Marc DeLuca said in a statement. Luxe Class A offices have been on the rise as tenants pursue quality over quantity in recent years.

The portfolio is approximately 84 percent leased, excluding a 314,000-square-foot property in Maryland that is mid-renovation. There were 269,000 square feet of leases executed across the portfolio in the first half of the year, more than doubling deal volume over the same period in 2023.

Over the summer, the REIT sold the One Town Center office building in Boca Raton, Florida, for $82 million. That represented a 17.6 percent discount from its purchase price three years earlier. Gatsby Enterprises was the buyer of the 10-story, 201,000-square-foot property and attached garage.

REITs are on the rise. In the second quarter, they raised $12.5 billion of corporate debt and $4.1 billion of common and preferred equity, according to the National Association of Real Estate Investment Trusts.

— Holden Walter-Warner