Newport Beach, California (October 9, 2024) – Prime US REIT, a Singapore REIT with the principal investment strategy of investing, directly or indirectly, in stabilized income-producing office assets in the U.S. and KBS, one of the largest owners and operators of premier commercial real estate in the nation, announce the completion of a major refinancing for the Prime US REIT portfolio. The new agreement has an aggregate principal amount of $550 million, comprising a $400 million term loan facility and a $150 million committed revolving credit facility. Prime US REIT trades on the Singapore Exchange Securities Trading Limited ticker as: OXMU. KBS serves as the U.S.-based asset manager for the portfolio, which includes helping to negotiate the credit facility. Prime US REIT’s portfolio consists of extremely well-located Class A assets with highly desirable amenities.

“The completion of this refinancing further strengthens our capital position, allowing us to make significant capital improvements across our portfolio, ensuring our buildings meet the highest standards of quality, sustainability, and tenant satisfaction. We are committed to providing exceptional spaces for our tenants and ensuring continued value for our investors. We are now better equipped to seize new opportunities and reinforce our commitment to long-term success,” says Rahul Rana, CEO and Co-Sponsor of Prime US REIT.

The Prime US REIT refinance highlights the strength of Class A office as tenants reimagine how they use office space, shining a positive light on the sector, according to Marc DeLuca, CEO and Eastern regional president of KBS.

“KBS assisted Prime US REIT with the financing in 2019 in conjunction with the initial listing on the Singapore Stock Exchange,” says DeLuca. “This refinancing marks another strategic move by Prime US REIT and demonstrates the ongoing appeal of premier office assets. While Class B and C office properties may be struggling due to shifting trends in office use, companies are continuing to gravitate toward well-located Class A office buildings with state-of-the-art amenities in key U.S. markets – the essence of the Prime US REIT portfolio. Employers are utilizing this space to attract their teams to the office in an increasingly competitive business environment.”

As the U.S.-based asset manager for the portfolio, KBS’ active asset management strategies are focused on leasing. Leasing volume in the Prime US REIT portfolio more than doubled year-over-year in the first half of 2024, increasing from 131.2k sf to 268.6k sf. The increase in leases executed in the first half of 2024 highlights improving tenant confidence in executing leases. The weighted average lease was 4.2 years as of June 2024. While the recovery of the office sector remains bifurcated across markets, new leasing demand is encouraging. The portfolio secured renewals and new signings at several assets including Reston Square, Promenade, 171 17th Street, Tower 909, 101 South Hanley, and One Washingtonian Center.

“Prime US REIT is in a strong financial position, bolstered by this refinancing,” says Cindy Teo, CFO of Prime US REIT. “The additional liquidity allows us to invest in critical capital improvements across our properties, enhancing the quality and longevity of our assets. By focusing these resources on upgrades and modernizations, we are positioning our portfolio for continued growth and ensuring sustained value for both our tenants and investors.”

KBS is also assisting Prime US REIT in an asset enhancement initiative at One Washingtonian Center in Gaithersburg, Maryland. The iconic 14-story office building with a lakefront view, adjacent to Rio Shopping Center, offers a diverse and eclectic mix of restaurants, shops, cinema and entertainment options. The repositioning is slated for completion in the fourth quarter of 2024 and will feature a fully renovated lobby entrance, renewed tenant lounges, conference center, new full-service gym, and Grab & Go Café with banquette seating and direct water views.

Despite the high cost of debt creating challenges in the capital markets, and many lenders pulling back on office financing, KBS has worked successfully with its lending relationships to refinance multiple loans for Class A office properties in 2023 and 2024. KBS’ ability to work with all stakeholders to reach mutually acceptable terms and complete complex transactions in a challenging capital markets environment was instrumental in the original Prime US REIT bank facility loan and in the successful refinancing of this facility on Prime US REIT’s behalf, according to Robert Durand, executive vice president of finance at KBS.

“Our firm worked with Prime US REIT to establish the original credit facility as well as its refinancing, demonstrating our experience and the depth of our long-lasting lending relationships,” says Durand. “Our in-house financing team has deep expertise in commercial real estate and the capital markets. After 32 years in the industry, we recognize how economic and real estate cycles run, and we know what financial institutions require in a qualified borrower and operator. Our long-standing relationships with lenders and a solid track record of success in office properties and operating integrity helped bring this transaction across the finish line.”

About Prime US REIT

Prime US REIT was listed on the Main Board of the Singapore Exchange on 19 July 2019. Prime US REIT is a well-diversified real estate investment trust, focused on stabilized income-producing office assets in the United States (“U.S.”). With the objectives to achieve long-term growth in distributions per unit and net asset value per unit while maintaining a robust capital structure, Prime US REIT offers investors unique exposure to a high-quality portfolio of 13 Class A freehold office properties which are strategically located in 12 key U.S. office markets. Prime US REIT’s portfolio has a total carrying value of US$1.3 billion as of 30 June 2024.

About KBS

KBS is one of the largest investors of premier commercial real estate in the nation. As a private equity real estate company and an SEC-registered investment adviser, KBS and its affiliated companies have completed transactional activity of more than $45.2 billion on behalf of private and institutional investors globally. Founded in 1992 by Peter Bren and Chuck Schreiber, KBS acquires and operates commercial real estate in some of the most successful epicenters in the country. The firm is committed in its business ethics, its business relationships, and its constant focus on exceeding the expectations of its investors, partners, and tenants. SEC registration as an investment advisor does not imply any particular level of skill or training. For more information on KBS, please visit www.kbs.com.

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to KBS’ ability to invest in and manage a diverse portfolio, and the performance of specific properties and the real estate markets in which they are located. These statements are subject to known and unknown risks, uncertainties and other factors which may cause KBS’ actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

For further information about Prime US REIT, please contact:
Prime US REIT Investor Relations
T: (65) 6951 8095
E: info@primeusreit.com

KBS Media Contacts:
Ginny Walker
KBS Senior Public Relations Director
949-417-6535
gwalker@kbs.com

Lexi Astfalk or Sophia Reznicek
The Smart Agency
949-438-6262
KBS@thesmartagency.com