18 November 2003
Keystone Property Trust of Pennsylvania has bought the International Corporate Park in Miami’s Airport West industrial corridor for $US114.4 million, including $US67.6 million of assumed debt. The master-planned park contains 160,000mÂ² in 13 modern warehouse/distribution buildings, 97% leased, on 120ha. Some buildings in the park are owner-occupied, but Keystone has capacity to add about 32,000mÂ² more. Keystone is a major industrial reit (real estate investment trust) and provides full details on its website of the luxury quality it says this purchase displays. Miami International Airport is ranked No 1 in the US for international freight and No 3 for total freight.
Website: Keystone Property Trust
Simon Property Group Inchas increased its stake in Kravco Investments LP, owner of 7 regional malls in Pennsylvania, to 80%, and in the Kravco management company to 50%. The family interests of founder Arthur Powell will own the rest. The deal will cost Simon $US300 million, including $US108 million of assumed debt with a weighted average interest rate of 7.12%. Simon will issue $US120 million of perpetual preferred operating partnership units at interest rates ranging from 7.5-8% and fund the rest from cash. It expects the initial unlevered yield from the transactions to be about 8.8%. The portfolio averages earnings of more than $US400/ftÂ².
Reading International Inc reported its 7th consecutive quarter of positive ebitda (earnings before interest, tax, depreciation & amortisation), up 30% for the 3rd quarter to $US1.2 million on revenue up 7.7% to $US23.7 million after strong performances by its Australian & New Zealand cinemas lifted revenue/screen 11.3% to $US102,050. Operating expenses grew 8.4% to $US18.9 million and the net result was a $US2.5 million loss, compared to a $US1.6 million loss in the September 2002 quarter.