Thursday, 12 February 2015
Kennedy Wilson acquires Gardner House, Dublin for €45 million (IE)
Kennedy Wilson Europe Real Estate Plc, an LSE listed property company (LSE: KWE) that invests in direct real estate and real estate loans in Europe, announces that it has completed the acquisition of Gardner House, Wilton Place, Dublin 2, previously held as two loans secured by a first ranking mortgage. The purchase price for the property is €45 million, reflecting a net initial yield of 6.7%.
The acquisition of the underlying real estate was transacted through a cashless acquisition of the property following the consensual resolution of the non-performing loan (NPL) investment with the underlying borrower. The loans were acquired by KWE on 19 November 2014 from a financial institution.
The borrower acquired the property in 2006 for €82.1 million and the unpaid principal balance on the underlying loans was €74.8 million.
Gardner House is a 75,600 ft² (6.967 m²) office building located on Wilton Place, a prime Dublin office location between Baggot Street and Leeson Street being less than two kilometres from Dublin City Center. The property is let in its entirety to PwC and was its headquarters prior to PwC’s move to One Spencer Dock, Dublin 1. The unexpired lease term is 3.8 years to December 2018.
Mary Ricks, President and CEO of Kennedy Wilson Europe, commented: “The off market purchase of the Gardner House loans back in November provided KWE with a high quality income stream while we explored resolutions with the borrower. We are pleased to successfully employ our ‘loan-to-own’ strategy to access a high quality property in a prime location. Our ability to deliver significant value-enhancing asset management initiatives into a strong Dublin office market makes this a very attractive addition to our Dublin portfolio.”
Source: FTI Consulting