Kennedy Wilson has completed the sale of Pioneer Point, a wholly-owned 294-unit multifamily community with 35,000m² of fully leased commercial space, for c.€120m ($130m) to RealStar, a real estate investment and management company focused on the rental residential, hospitality and alternative asset classes. Pioneer Point, located in the London suburb of Ilford, was unleveled and the c.€117.4m ($127m) of net proceeds from the sale will be recycled into new European acquisitions and development.
Kennedy Wilson acquired the non-performing loan secured against the freehold interest of Pioneer Point in May 2015 and took direct ownership in February 2016, implementing an ambitious asset management program and transforming the property to materially improve occupancy and more than double the NOI. This program included lengthening leases in the north tower, commissioning and leasing the empty south tower and converting vacant ground floor space to an enhanced amenity offering including a dedicated on-site concierge and property management suite as well as resident lounges, meeting spaces and work pods, a quiet lounge, entertainment spaces with open plan kitchen and dining rooms, a kids’ zone, games room and cinema.
“Since opportunistically acquiring Pioneer Point, we executed a wide-ranging, value-enhancing asset management program that put a spotlight on the breadth of our asset management expertise and brought new life to this landmark building,” said Mike Pegler, Head of UK at Kennedy Wilson. “The renovations, top-tier management and continued demand for rental housing in this local market resulted in a strong total return to Kennedy Wilson as we continue to focus on disposing of non-core assets, recycle capital into other investment opportunities and to fund existing development projects. We are delighted that a long-term multifamily operator, will continue delivering a positive experience for the residents of Pioneer Point.”