KWE disposes of UK fire control centres for €130m

Kennedy Wilson Europe Real Estate (KWE) has completed the sale of a portfolio of five UK fire control centres.

The London-listed property company disposed of the Avon loan portfolio to a UK infrastructure fund for £100.3 mln (€130.3 mln), reflecting an exit yield of 6.5%.

The properties are located on business parks in Cambridge, Castle Donington, Durham, Wakefield and Wolverhampton and leased to the UK government. The leases include five-yearly rent reviews with fixed indentation of 2.5% and a weighted average unexpired lease term (WAULT) of 15.1 years.

KWE acquired the portfolio in June 2014 for £93.5 mln.

Mary Ricks, president and CEO, said: ‘The Avon portfolio has delivered robust unlevered returns to the company with 15.3% return on cost and 10.0% unlevered IRR; both ahead of business plan targets and timing. The sale forms an important part of our £300 mln non-core disposal programme which remains on track.’

EY Real Estate Corporate Finance and CBRE advised KWE.

Kennedy Wilson invests in real estate and real estate loans across Europe, primarily in the office and retail sectors in the UK and Ireland, with a total portfolio value in excess of €2.5 bn.