Canadian privately-owned real estate investor Realstar has acquired the mixed-use Pioneer Point in London from global real estate investment firm Kennedy Wilson for $130 mln (€120 mln).
Situated in Ilford in east London, Pioneer Point comprises 294 build to rent (BtR) residential units plus 35,000 ft2 (3,250 m2) of fully-leased commercial space.
Kennedy Wilson acquired the non-performing loan secured against the freehold interest of Pioneer Point in May 2015 and took direct ownership in February 2016, before implementing an asset management programme to improve occupancy.
Renovations included adding an on-site concierge and property management suite as well as resident lounges, meeting spaces and work pods, a quiet lounge, entertainment spaces with open plan kitchen and dining rooms, a kids’ zone, games room and cinema.
Mike Pegler, Head of UK at Kennedy Wilson said: 'The renovations, top-tier management and continued demand for rental housing in this local market resulted in a strong total return to Kennedy Wilson as we continue to focus on disposing non-core assets, recycle capital into other investment opportunities and to fund existing development projects.'
The firm said that the asset was unlevered, so the $127 mln of net proceeds from the sale would be recycled into new European acquisitions and development.
