< BACK TO News

The Board of Directors of KBS US Prime Property Management Pte. Ltd. (the “Manager”), as Manager of PRIME US REIT (“PRIME”), is pleased to announce the completion of the consolidation of the property management function for 13 of PRIME’s properties to Lincoln Property Company (“LPC”).

PRIME previously engaged seven property management firms to serve its 14-property portfolio. The consolidation of PRIME’s property management services to LPC is a key step in PRIME’s evolution as it continues to grow its asset base and intensify its focus on ESG and technology solutions across its portfolio as core to its operating agenda.

Having considered the merits of a consolidated property manager for PRIME’s portfolio and evaluated potential candidates for this role, the Manager and its Board made the decision to appoint LPC given its extensive commercial real estate property management capabilities across the United States, its core commitment to ESG and technology, and its deep real estate expertise in PRIME’s existing and new markets to supplement PRIME and its outsourced provider’s existing capabilities. Aggregate property costs to PRIME, post the appointment of LPC, are expected to remain substantially the same as would have been the case with the earlier property management structure.

LPC, an entity not related to the Manager or its shareholders, is one of the largest diversified real estate services firms in the United States and is the only national real estate company to rank concurrently in the Top 10 lists of Management/Ownership of Office, Mixed Use, Retail, and Industrial real estate. Over the past 55 years, LPC has grown its international footprint to offices in 45 cities with over 8,700 employees across the United States and Europe, including coverage of PRIME’s current and target markets. LPC’s on the ground presence is a resource that provides ongoing visibility and access to emerging opportunities that will serve to facilitate PRIME’s growth strategies. In addition, their property development expertise will play a key role in bringing efficiencies and cost management to building and tenant construction costs, particularly important in the current environment.

LPC’s resource commitment to ESG activities was a key factor in PRIME’s decision-making considerations. As PRIME continues to expand and further its ESG efforts, LPC would add portfolio perspective to drive these initiatives, as it has successfully done across its existing asset portfolios. LPC provides resources through several avenues. Given the significant scale of its business, LPC has access to multiple ESG solutions and technologies, and in addition, has an internal group that invests in emerging real estate and ESG technologies that provides early access to test and evaluate their solutions, which are resources that they can bring to bear to PRIME. Furthermore, they have committed to comprehensive training and to implement their Sustainability Reference Guide to all the property managers managing PRIME’s assets.

As an added benefit, LPC leasing teams are able to provide market intelligence on current leasing activity in PRIME’s markets that supplement services of PRIME’s leasing teams. LPC currently oversees 433 million square feet of commercial real estate and thus is well-positioned to provide input on current market conditions and trends across markets and commercial property types should PRIME decide to broaden and diversify its investment mandate and strategies.

As noted, 13 of PRIME’s 14 assets have been transitioned to LPC, with the final property management transfer decision to be based on achievement of key property milestones.

Source: https://investor.primeusreit.com/newsroom/20220608_081541_OXMU_LGMEYTQFUQ4PHEYO.1.pdf

Pin It on Pinterest