Kennedy Wilson JV buys UK portfolio for €75m

US investor Kennedy Wilson and one of its investment partners have acquired a portfolio of 29 UK real estate assets for £63 mln (€75 mln) out of a CMBS pool of assets.

Kennedy Wilson invested $21 mln (€16 mln) of equity in the transaction. The properties were purchased on an all-cash basis.

Around 60% of the portfolio’s assets are located in London and the Southeast, with the remaining spread throughout the rest of the country. The assets are primarily office buildings but also include industrial and retail properties, providing a total floor area of over 1.1 million sq ft (102,000 m2). On a trailing 12 month basis, the properties currently generate a 15% yield.

The package, secured in a CMBS known as Alburn REC 6, was put up for sale last year with Savills being appointed as receiver.

'This portfolio is an excellent mix of assets with significant value-add opportunity,' said Mary Ricks, president and CEO of Kennedy Wilson Europe. 'We believe that our asset management expertise will allow us to maximise the potential of the properties and provide excellent returns for Kennedy Wilson and our partner.'

Since the beginning of last year, Kennedy Wilson has completed $1.5 bn of acquisitions in Europe, including $1 bn of acquisitions since the beginning of the fourth quarter. In total, Kennedy Wilson said it has pumped $131 mln into these transactions.