Kennedy Wilson acquires four offices for over €24m
Kennedy Wilson Europe Real Estate Plc (LSE: KWE) an LSE listed property company that invests in direct real estate and real estate loans in Europe, has acquired four offices for €24.9 million (£18.4 million), reflecting a yield on cost 5.7%. The acquisitions will be funded from the Company’s cash resources.
The portfolio comprises 72,200 sq ft and is 86% occupied with a WAULT of 4.3 years (12.1 years to expiry).
KWE has exchanged on two of the office assets from NAMA for €11.8 million (£8.7 million) reflecting a capital value of €633 psf. The properties total 18,600 sq ft and are located in Dublin’s South Docks on Sir John Rogerson’s Quay, fronting the River Liffey.
KWE has also completed on two South Dublin suburban office assets (53,500 sq ft) from a UK bank for €13.2 million (£9.7 million) reflecting a capital value of €245 psf.
Peter Collins, COO and Head of Ireland of Kennedy Wilson Europe, commented:
“This portfolio is well located, increasing our footprint in both South Docks and the attractive South Dublin suburbs, where we see increased supply demand pricing tension. The portfolio benefits from asset management angles with relatively short term income to expiry and a number of near term leasing events where the current rents are materially below market rents. We expect to grow the portfolio rent by c. 14% through a combination of leasing up of void space and growing in place rents to closer to ERVs, generating a stabilised yield on the portfolio of. 6.5%.”