Kennedy Wilson Europe Real Estate Plc has acquired Duke Park, Chelmsford, a 160,000ft² (14,900m²) logistics property, from a local real estate company for £10.5m (€13.2m), reflecting a yield on cost of 6.75%. The acquisition will be funded from the company’s existing cash resources.
The property is 100% occupied and let to an international logistics business for a term expiring in April 2019, with a tenant’s option to extend the lease until October 2023.
Including this acquisition, KWE’s UK industrial portfolio includes 34 assets, over 2.9 million ft² (270,000m²), with an aggregate portfolio value of £191m (€240m). It is 98% occupied with a WAULT of 6.1 years (7.1 years to expiry).
Mary Ricks, president and CEO of Kennedy Wilson Europe, commented: “The acquisition of Duke Park complements our existing UK industrial portfolio with significant value-enhancing asset management upside. The prime position in Chelmsford alongside low average in place rents of £4.75/ft² (€64.2/m²) provides us with options to grow income and enhance values.”
Strutt & Parker and Harwin advised KWE on the acquisition.
