Kennedy Wilson partnership buys UK portfolio

The Beverly Hills-based investment firm and one of its investment partners have acquired 29 properties in the UK for £63 million. Kennedy Wilson invested $21 million of equity in the transaction.

A partnership led by Kennedy Wilson has acquired a portfolio of UK-based properties for approximately £63 million (€75.4 million; $100.7 million). 

The Beverly Hills-based real estate investment firm purchased 29 properties with an investment partner from a CMBS pool serviced by The Rothschild Group. Although the properties themselves are not distressed, the value of the securitization went down after the bond holders failed to agree on how to refinance the debt on the properties in question.

Although a spokeswoman for Kennedy Wilson declined to disclose the firm’s partner, sources told PERE that it is the Minneapolis-based investment manager Varde Partners. The properties were purchased on an all cash basis, with Kennedy Wilson invested $21 million of equity in the transaction. 

According to Kennedy Wilson, 60 percent of the portfolio’s assets are located in London and the southeast, with the remainder spread throughout the rest of the country. Totaling more than 1.1 million square feet of space, the portfolio consists primarily of office buildings, but it also includes industrial and retail properties. 

Mary Ricks, president and CEO of Kennedy Wilson Europe, said in a statement that the portfolio “is an excellent mix of assets with significant value-add opportunity.”

Last month, Kennedy Wilson acquired a large UK-based commercial loan portfolio secured by real estate in partnership with a European financial institution. Since the beginning of last year, the firm has completed $1.5 billion of acquisitions in Europe, including $1 billion of acquisitions since the beginning of the fourth quarter. All told, Kennedy Wilson has contributed roughly $131 million in equity into these transactions.