Global real estate investment company Kennedy Wilson has added a $111m (€103.5m) asset in London to its UK industrial portfolio.

Kennedy Wilson, which acquired the 300,000sqft Heathrow Estate in West London with its partner, said it will own a 10% stake in the asset.

Kennedy Wilson said the multi-let industrial property was acquired with equity and a $73m secured loan, adding that it will earn customary fees for overseeing the asset management of the property.

The warehouse with ancillary office space is 84% leased to a diverse mix of occupiers.

Kennedy Wilson said it plans to implement an active management strategy, enhancing on-site services, boosting sustainability, and exploring potential future uses for the properties.

The latest deal expands the manager’s global industrial platform to over 12m sqft, representing $2.1bn in managed assets. Kennedy Wilson manages $1.6bn of industrial space in the UK, comprising approximately nine million sqft, with an occupancy of 98%. 

The Heathrow Estate

Source: Kennedy Wilson

The Heathrow Estate

Mike Pegler, president of Kennedy Wilson Europe, said: “This acquisition demonstrates our ability to identify attractive investments in established distribution locations with strong underlying fundamentals that provide excellent potential for rental growth.

“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.”

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