Kenmore Property Group continues its expansion in continental Europe through five acquisitions. The investments amount to a total of €202 million.
In Norway Kenmore has acquired a portfolio of six peripheral Oslo Central Business District offices on behalf of MK Capital. The properties comprise a total area of 33,221 m². Kenmore has plans to re-let existing and vacant areas at and potentially above current market rates. Key current tenants include the Norwegian Statistics Agency and a number of prominent law firms. The purchase price of €52.4 million represents an initial yield of 6.63%.
In Finland, Kenmore has also acquired 21 mixed-use and industrial properties in the Helsinki Economic Area on behalf of MK Capital. The properties provide a total of 43,401 m² and comprise the following breakdown of sectors: 45% Industrial, 36% Retail, 13% Offices, and 6% Hotel. Key tenants include the Finnish Postal Serice and Kesko. The purchase price of €32 million represents a blended initial yield of 7.64%.
In its third acquisition, Kenmore, in a joint venture with Revcap and HBOS, has purchased a retail warehouse of 13,000 m² in Vantaa, close to Helsinki Airport, with potential plans to develop a further 6,000 m² on the site. This acquisition is Kenmore's third joint venture deal with HBOS in Finland with more currently in the pipeline. The purchase price on this deal was €18.5 million representing an initial yield of 5.97%.
In the Netherlands, Kenmore has acquired two portfolios of assets on behalf of MK Capital, comprising 17 buildings for €85 million expressing a net initial yield of 7.16%. The properties are mainly located in central Netherlands, in economically strong areas in and around the 'Randstad' area. The majority of the assets are offices, with one 12,039 m² shopping center, comprising 8,559 m² of retail space and 3,480 m² of office space. The properties are multi-let to good local covenants with 78 individual leases and there is currently a vacancy level of around 20%. Tenants include local law firms, accountants, banks and European retailers. Individual lot sizes range from 1,000 to 12,000 m².
On behalf of Adam and Co Second Property Partnership, Kenmore has acquired a further portfolio of assets in Sweden, comprising 12 retail properties for €14.1 million reflecting a net initial yield of 6.53%. The properties provide 12,261 m² of retail space and are located in ten municipalities in western and southern Sweden. ICA stores, Sweden's largest food retailer, represent 86% of the portfolio by rental value.
Commenting on the acquisitions Rob Brook, Managing Director, said: "These strategic acquisitions represent significant additions to our existing holdings in the Scandinavian and Dutch markets and offer a number of opportunities to apply our specialist asset management skills and experience to extract value.
"Our investment programme in the Nordic and Dutch markets, both on our own behalf and for funds that we manage and co-invest in, is progressing very well. Backed by the recovering European office rental market and our greater focus on Finland, we look forward to significantly increasing our presence in these markets."
Source: Financial Dynamics