Kennedy Wilson and its partner have acquired Heathrow Estate, a high-quality multi-let industrial property in a prime distribution location in West London for c. €101m, excluding closing costs.
The income-producing asset, which comprises a total of c. 27,871m2 of modern warehouse and ancillary office space, is 84% leased to a diverse mix of occupiers including Asendia, Tailsco, and HSS Hire. Heathrow Estate provides attractive short to medium-term opportunities to add value through the extension of existing tenant leases and the leasing of vacant units. Kennedy Wilson will also undertake an active asset management strategy to improve on-site services and upgrade sustainability performance, as well as reviewing the possibility of future alternate uses.
Situated in West London, Heathrow Estate is strategically located in an established industrial hub, benefiting from direct access to Junction 4 of the M4, Heathrow Airport’s Cargo Terminal, as well as Junctions 13 and 14 of the M25.
“This acquisition demonstrates our ability to identify attractive investments in established distribution locations with strong underlying fundamentals that provide excellent potential for rental growth,” said Mike Pegler, President, Kennedy Wilson Europe. “We are pleased to expand our growing global industrial platform, and we are now focused on executing the business plan while leveraging our expertise to capture significant reversion through accretive and targeted capital expenditure.”
Image provided by FTI Consulting.
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