Global real estate investment company Kennedy Wilson and its partner have acquired Heathrow Estate, a multi-let industrial property in a prime distribution location in West London for $111 mln (€103 mln), excluding closing costs.
The income producing asset, which comprises a total of approximately 300,000 ft2 (27,800 m2) of modern warehouse and ancillary office space, is 84% leased to a diverse mix of occupiers including Asendia, Tailsco, and HSS Hire.
Mike Pegler, president, 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.'
Kennedy Wilson said it would undertake an active asset management strategy to improve on-site services and upgrade sustainability performance, as well as reviewing the possibility for future alternate uses.
Situated in West London, Heathrow Estate is located in an established industrial hub, benefiting from direct access to Junction 4 of the M4, Heathrow Airport’s Cargo Terminal, as well as Junctions 13 and 14 of the M25.
Kennedy Wilson has a 10% ownership interest in Heathrow Estate, which was acquired with equity and a $73 mln secured loan, and will earn customary fees for overseeing the asset management of the property.
This latest acquisition expands Kennedy Wilson’s investment management program as well as its global industrial platform, which totals over 12 million ft2 and represents $2.1 billion of AUM. In the UK, Kennedy Wilson manages approximately $1.6 bn of industrial space, comprising approximately 9 million ft2, with an occupancy of 98%.
