Kennedy Wilson has completed the sale of two wholly-owned U.K. properties, including the Fairmont St Andrews resort in Scotland and Leavesden Park, an office asset near Watford. The sales generated approximately €160.9m ($178m) of proceeds to Kennedy Wilson, which the company expects to recycle into other European investment opportunities and to fund existing development projects.
The Fairmont St Andrews is an award-winning, 211-bedroom luxury hotel and is one of Scotland’s leading golf and conference offerings. It comprises 520 acres along the coast and includes two 18-hole championship golf courses. Including the disposition of the Fairmont St Andrews, Kennedy Wilson has sold three hotel assets for approximately €216.9m ($240m) in 2019.
Leavesden Park is part of a modern 300-acre business park campus near Watford within Greater London, comprising nearly 200,000ft² of recently refurbished Grade A office space and 778 car parking spaces.
Mike Pegler, Head of UK for Kennedy Wilson, said: “Following the completion of our renovations at the Fairmont St Andrews, including a targeted sustainability program, we have significantly improved the operating performance and grown NOI by over 50% during our ownership. A healthy hospitality investment market and the strong growth credentials of the repositioned Fairmont St Andrews resulted in this successful disposition. After an impressive and comprehensive refurbishment of Leavesden Park, we were delighted to bring the fashion retailer ASOS to Watford in 2017 and work with them to extend their presence and take occupancy across the entire building in late 2018 on improved lease terms. The successful sale of this asset demonstrates the strong demand for well-leased, modern office assets in the South East market where Kennedy Wilson continues to be a leading investor.”