Wednesday, 24 September 2014
Kennedy Wilson Europe Real Estate completes € 234.5 million Jupiter portfolio financing (UK)
Kennedy Wilson Europe Real Estate plc, a London Stock Exchange listed company that invests primarily in real estate and real estate loans in Europe, announces that it has completed a £184 mln (approx. € 234.5 mln) asset financing secured against certain assets in the Jupiter real estate portfolio, which the Company acquired in June this year.
Upon satisfaction of certain condition precedents, the Company will draw down the facility in full. The facility has been arranged with The Royal Bank of Scotland plc and has a five-year term.
The Jupiter Portfolio is a mixed use portfolio of 21 real estate assets located in strong commercial centers across England and Scotland. It comprises 11 office assets, nine retail assets and one industrial asset, of which 11 of the assets are freehold and 10 are leasehold. As of 31 August 2014, the Jupiter Portfolio consisted of approximately 2.5 million ft² (approx. 232,258 m²) and had an annualised gross rental income of circa £25.3 mln (approx. € 32.2 mln), with a weighted average lease term of around 7.3 years and an occupancy rate of approximately 88% (by area).
Once the facility is fully drawn down, the Company's loan-to-value ratio will increase to approximately 34%, with approximately £506 mln (approx. € 644.7 mln) of debt financing in place at the asset level and a weighted average maturity of approximately 4.6 years.
Mary Ricks, President and CEO of Kennedy Wilson Europe, commented: “The completion of this financing has enabled the Company to effectively manage its balance sheet and provided significant additional flexibility to enhance future investment opportunities and manage growth prospects.”
Source: FTI Consulting