London-listed company Kennedy Wilson Europe Real Estate has purchased two distribution warehouses at the Orion Business Park, Ipswich for £11.6 mln (€14 mln), reflecting a yield on cost of 8.1%.
'The acquisition at Orion Business Park complements our existing UK industrial portfolio with value-enhancing asset management upside. Situated within close proximity to Felixstowe port, the UK's biggest container port, Orion Business Park provides good access to the port within an improving logistics centre,' commented Mike Pegler, head of asset management, excluding Ireland, at Kennedy Wilson Europe. 'This alongside low average in place rents of around £5 per ft2, provides us with good options to grow income and enhance values.'
Acquired in two separate transactions, the two adjoining units are fully let to local and national logistics companies and offer over 203,000 ft2 (18,860 m2) of space, with a weighted average unexpired lease term (WAULT) of 5.3 years (7.9 years to expiry).
Following this acquisition, KWE's UK industrial portfolio now includes 31 assets comprising over 3.1 million ft2, with an aggregate investment value of £201 mln. The portfolio is 96% occupied with a WAULT of 5.7 years (7 years to expiry).
