Kennedy Wilson Europe Real Estate (KWE) has bought 180 UK property assets from multiple receivers on behalf of Aviva Commercial Real Estate Finance.
The company, which raised £750m when it was listed on the London Stock Exchange earlier this year, acquired the mixed-use portfolio for £503m (641m).
Aviva is providing a new senior debt facility for £352m, at 70% loan-to-value.
The purchase of the 3.5m sqft portfolio will increase KWE’s investments in the UK and Ireland to just under $2bn.
The portfolio is 98% occupied and generates a net rental income of £36.1m.
More than half (54%) of the assets are in London and the South East, 41% in the rest of England, and 5% in Scotland and Wales.
Mary Ricks, president and CEO of KWE, said: “This significant portfolio acquisition allows us to access a high quality, mixed-use portfolio with strong tenant covenants generating robust income streams at a material discount to the original loan amounts.
“The portfolio benefits from a number of institutional quality investments with good individual asset liquidity across the remaining portfolio.
“There are significant asset management angles, including growing income through lease re-gears, renewals, rent reviews and the leasing up of vacant space.”
Ewan Tocher, managing director at Aviva UK Life Commercial Mortgage Restructuring, said the sale was “central to concluding our property restructuring strategy for 2014”.