Kennedy Wilson has acquired a high-quality diversified portfolio of 20 UK urban logistics assets totaling 1.3 million ft², via an off-market transaction with UK logistics specialist, Leftfield, for €267.5m ($287m). Kennedy Wilson has a 20% ownership in the portfolio and invested €22.4m ($24m) of equity in the transaction. The industrial properties are situated in strong urban logistics locations across the UK, including London and the South East, Yorkshire, and the Midlands. The portfolio is 100% occupied with in-place rents at a significant discount to current market rates.
“This acquisition provides access to a diversified portfolio of strategically located urban logistics assets,” said Mike Pegler, Head of UK for Kennedy Wilson. “The team has outperformed in its ability to grow the European industrial platform, and we remain confident about the future growth trajectory, which is underpinned by strong fundamentals. With sector take-up in the first quarter of the year surpassing 10 million square feet for the first time since 2018, we expect robust eCommerce growth, a continued supply-demand imbalance and resultant rental growth to further enhance industrial capital values.”
Nico Fourie, CEO for Leftfield Advisors Ltd, comments: “Leftfield has met its objective of accumulating and optimizing this portfolio, the sale of which leaves it well-positioned for considerable value-unlock over time. In addition to digital adoption, partial deglobalization is driving onshoring, nearshoring and reshoring, making logistics assets ever more critical in the pursuit of greater supply-chain efficiencies. It’s business as usual for Leftfield as we continue to acquire assets into our next urban logistics and last-mile portfolio.”
