Prime US REIT’s $245.5 Million Acquisition of Sorrento Towers and One Town Center

Allen & Gledhill advised KBS US Prime Property Management Pte. Ltd, in its capacity as the manager of Prime US REIT.

The manager of Prime US Reit has agreed to acquire two properties in the United States for US$245.5 million (S$330.5 million), with the purchase to be partially funded through a private placement exercise to raise gross proceeds of at least US$80 million.

Comprising two freehold seven-storey Class A office towers, Sorrento Towers sits above a three-level podium garage at 5355 and 5375 Mira Sorrento Place, San Diego, California, and will be acquired by the real estate investment trust (Reit) at its valuation price of US$146 million. It was built in 1989 with its last refurbishment completed in 2020, and comes with a net leasable area (NLA) of 296,327 sq ft as well as 1,052 parking lot spaces at 3.9 lots per 1,000 sq ft.

The other acquisition target is One Town Center, a freehold 10-storey Class A office tower with a five-storey attached parking garage in Boca Raton, Florida. The property will be sold to Prime US Reit at US$99.5 million, or at a 2.5 per cent discount to its US$102 million valuation, as at June 8, 2021. Built in 1991, One Town Center’s last refurbishment was also completed in 2020. Its parking garage component features 435 lots in addition to 274 surface parking lots. 

Prime US REIT (SGX: OXMU) is a Singapore REIT managed by KBS US Prime Property Management Pte. Ltd that was incorporated in Singapore under the Companies Act on 26 July 2018.

Advising the Manager were Allen & Gledhill Managing Partner Jerry Koh (Picture) and Partner Teh Hoe Yue.

Involved fees earner: Teh Hoe Yue – Allen & Gledhill LLP; Jerry Koh – Allen & Gledhill LLP;

Law Firms: Allen & Gledhill LLP;

Clients: KBS US Prime Property Management Pte. Ltd;

Author: Sonia Carcano