International real estate investment and services firm Kennedy Wilson (NYSE: KW) today announced that the company and one of its investment partners acquired a portfolio of 29 U.K. real estate assets for approximately £63 million (approx. 75 million) out of a CMBS pool of assets. Kennedy Wilson invested $21 million (approx. 15.7 million) of equity in the transaction. The properties were purchased on an all cash basis.
60% of the portfolio's assets are located in London and the Southeast, with the remaining spread throughout the rest of the country. The asset types are primarily office buildings but also include industrial and retail properties. The combined floor area of the properties is in excess of 1.1 million ft² (approx. 102,000 m²) on a trailing twelve month basis, the properties currently generate a 15% yield.
"This portfolio is an excellent mix of assets with significant value-add opportunity," said Mary Ricks, president and CEO of Kennedy Wilson Europe. "We believe that our asset management expertise will allow us to maximize the potential of the properties and provide excellent returns for Kennedy Wilson and our partner."
Last month, the company, in partnership with a European financial institution, acquired a large U.K.-based commercial loan portfolio secured by real estate. Since the beginning of last year, Kennedy Wilson has completed $1.5 billion (approx. 1.1 billion) of acquisitions in Europe, including $1 billion (approx. 750 million) of acquisitions since the beginning of the fourth quarter. In total, Kennedy Wilson has contributed approximately $131 million (approx. 98 million) into these transactions.
Source: Kennedy Wilson