Overview
Kennedy Wilson Europe says it has completed the acquisition of nine south east offices from an entity affiliated with Apollo Global Management LLC. The underlying real estate is valued at £211m at completion, reflecting a yield on cost of 8.0%. The corporate acquisition was funded from the Company’s cash resources.
| Area | Location | sq ft | Tenant | (%) |
| Watford | Leavesden Park | 196,300 | BT Plc | 100.0 |
| Farnborough | Discovery Place (pictured) | 140,100 | Multi-let | 100.0 |
| Harlow | Edinburgh Gate | 141,200 | Pearson Plc | 100.0 |
| Hook | Bartley Wood Business Park | 109,700 | Multi-let | 87.5 |
| Maidenhead | Eton House | 65,100 | Avaya | 100.0 |
| Heathrow | Stockley Park | 46,500 | Canon | 100.0 |
| Slough | Axis One, Hurricane Way | 56,800 | Travelport Ltd | 100.0 |
| Bracknell | Thames House | 33,700 | Cable & Wireless | 100.0 |
| Reading | Eldon Court London Road | 25,300 | Secretary of State | 100.0 |
| Total | 814,700 |
The nine modern offices comprise 814,700 sq ft of lettable space, generating a day one NOI of £17.0m from 14 tenants, with 80% of the income coming from very strong covenants, including listed companies and the Government. The weighted average unexpired lease term (WAULT) is 5.0 years (5.4 to expiry) and occupancy by ERV is 98.6%.
Kennedy Wilson say there are significant asset management opportunities including re-gears, extending lease lengths, refurbishments, rental growth from rent reviews and improving voids with 52% of the current NOI subject to lease events over the next 24 months.
KWE : Kennedy Wilson buys nine offices for £211m