International real estate investment and services firm Kennedy
Wilson (NYSE: KW) today announced that the company and Varde
acquired a portfolio of eight shopping centers out of administration for
£250 million ($388 million). Seven of the eight centers have
transferred, with the final center due to close subject to customary
closing conditions. The total equity contribution was £110 million ($170
million), including £34 million ($53 million) from Kennedy Wilson, and
£163 million ($253 million) of financing was provided.
Located throughout England and Scotland, the portfolio of properties
totals 2.3 million square feet, and 85% of its gross income comes from
national retailers such as Debenhams, Marks & Spencer, Asda, Tesco,
River Island and Primark. The company’s current asset management plan
includes increasing occupancy, extending short term leases by attracting
a broader range of retailers, upsizing key anchor stores, improving the
food and leisure offering and upgrading the physical environment of the
mall areas.
“In addition to asset management upside, there is the opportunity to
benefit from improving economic and market conditions, including rental
value improvement and yield compression to add value,” said Mary Ricks,
president and CEO of Kennedy Wilson Europe. “We see impressive potential
in this investment and look forward to capitalizing on strong interest
from retailers.”
Kennedy Wilson, together with its institutional partners, has acquired
more than $2.6 billion of real estate and real estate related debt
globally since the beginning of 2013, including $1.9 billion in the U.K.
and Ireland. Since 2010, the company and its partners have acquired
$10.6 billion of real estate related investments.
About Kennedy Wilson
Founded in 1977, Kennedy Wilson is an international real estate
investment and services company headquartered in Beverly Hills, CA with
24 offices in the U.S., U.K., Ireland, Spain and Japan. The company
offers a comprehensive array of real estate services including auction,
conventional sales, property services, research and investment
management. Through its fund management and separate account businesses,
Kennedy Wilson is a strategic investor of real estate investments in the
U.S., U.K., Ireland and Japan. For further information on Kennedy
Wilson, please visit www.kennedywilson.com.
Copyright Business Wire 2013