Kenmore European Industrial Fund today announces that it has completed the sale of a large regional Paris-based portfolio to a private investor, for a total gross consideration of 59 million prior to completion adjustments, transfer taxes and transaction costs, based on a mix of share and asset sales. This reflects a net realization of approximately 4% below the March 2009 valuation. In addition, KEIF provided the purchaser with a vendor credit facility of 6.4 million over two years.
The IDF portfolio of 17 assets comprises a total of 71,805 m² of light industrial and warehouse space, with the exception of one property comprising an office building, with all of the sites located in the wider Paris region. The portfolio is 98% let to a total of 73 tenants, including Getronics, INA, La Cornue (Aga Rangemaster Group) , the FNAC and Hygena.
Rob Brook, Managing Director of Kenmore Financial Services Limited, commented: "Following a quick succession of strategic disposals in the Paris region, this latest and most significant portfolio sale further consolidates the Fund's programme of exit from positions where it has already maximised 'value-add' active asset management initiatives, thereby deleveraging and de-risking its overall facility. This successful strategy not only provides the headroom necessary to protect the portfolio against future market falls in value but also reduces its exposure to the French market from 44.2% to 34.8%, rebalancing its geographic weighting."
BNP Paribas Real Estate acted on behalf of KEIF.