Kennedy Wilson Europe Real Estate has acquired the Fordgate Jupiter mixed-use portfolio for £296 mln (€366 mln) in cash through a CMBS loan enforcement managed by Mount Street.
Kennedy Wilson Europe Real Estate has acquired the Fordgate Jupiter mixed-use portfolio for £296 mln (€366 mln) in cash through a CMBS loan enforcement managed by Mount Street.
The deal reflects a yield of 8.4%.
The portfolio was bought from receivers Dudley Holme-Turner of Cushman & Wakefield and Simon Thomas from Moorfields Corporate Recovery. It comprises 21 assets located across the UK, including nine offices, two mixed properties, five car showrooms, three leisure assets, one retail property and one warehouse.
Kennedy Wilson Europe, which is 12% owned by New York-based parent company Kennedy Wilson, already owned certain subordinated loans (tranches 1, 2 and 3 of the B loan notes) secured by the Fordgate Jupiter Portfolio which it acquired at a discount in April 2014.
The package currently delivers gross rental income of £25 mln per annum, of which 47% is from Scotland and 74% from the office element. The assets are let to a number of blue chip companies including HSBC, Chevron UK, Conoco and the Secretary of State for the Environment, with the top six tenants accounting for over 50% of the total gross rental income. The weighted average unexpired lease term is six years to break, with a vacancy rate of 10%.
Mary Ricks, president and CEO of Kennedy Wilson Europe, said: 'The highly visible and secure income, complemented by strong underlying tenancies, together with a number of asset management plays, including leasing efforts, which we have already identified in the portfolio, make this an extremely attractive investment for us.'
Kennedy Wilson Europe has acquired real estate and real estate loans with an aggregate acquisition value of over £1 bn since its IPO on the London stock exchange in February 2014.
