London-listed Kennedy Wilson Europe Real Estate has completed the off-market acquisition of an office building in Dublin for €45 mln by taking over the non-performing loans on the asset.
London-listed Kennedy Wilson Europe Real Estate has completed the off-market acquisition of an office building in Dublin for €45 mln by taking over the non-performing loans on the asset.
The deal reflects a net initial yield of 6.7% and marks a discount of around 40% to the €74.8 mln unpaid loan balance on the asset.
The property, Gardner House, is the European headquarters of business networking site LinkedIn. It was previously held as two loans which Kennedy Wilson acquired in November from a financial institution believed to be Deutsche Bank.
Located at Wilton Place in Dublin, the property was sold in 2006 for €82.1 mln before being purchased by Kennedy Wilson in November with an unpaid principal balance of €74.8 mln.
The 75,600 sq ft (7,020 m2) building is let in its entirety to PwC and was its headquarters prior to the accountancy group's move to One Spencer Dock in the centre of Dublin. It is sublet to LinkedIn for the remaining lease term of 3.8 years.
Mary Ricks, President and CEO of Kennedy Wilson Europe, commented: 'The purchase of the Gardner House loans back in November provided KWE with a high quality income stream while we explored resolutions with the borrower. We are pleased to successfully employ our "loan-to-own" strategy to access a high quality property in a prime location.'