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ingapore-based Prime US REIT has secured a $550 million refinancing for its 13-property office portfolio across the United States. The deal, led by Bank of America, provides a liquidity boost that will enable the REIT to invest in capital improvements. The portfolio spans 4.2 million square feet and covers a dozen states, with a valuation of $1.3 billion.

    The refinancing package includes a $400 million term loan and a $150 million revolving credit facility. Prime US chief financial officer Cindy Teo noted that the influx of liquidity will allow the REIT to upgrade its properties. The portfolio is comprised of high-quality Class A offices, which have seen increasing demand as tenants prioritize quality over quantity.

    The properties are approximately 84% leased, excluding a Maryland property undergoing renovation. Lease activity has been strong, with 269,000 square feet executed in the first half of the year, more than doubling deal volume from the same period in 2023. The REIT also recently sold its One Town Center office building in Boca Raton, Florida for $82 million, representing a 17.6% discount from its purchase price three years prior.

    The refinancing is part of a broader trend as real estate investment trusts (REITs) continue to raise capital. In the second quarter, REITs secured $12.5 billion in corporate debt and $4.1 billion in common and preferred equity, according to the National Association of Real Estate Investment Trusts.