BEVERLY HILLS, Calif.–(BUSINESS WIRE)–Global real estate investment firm Kennedy Wilson (NYSE: KW) has acquired a high-quality, diversified portfolio of 20 UK city logistics assets totaling 1.3 million square feet, in an off-market transaction with British logistics specialist Leftfield for $287 million. Kennedy Wilson has a 20% stake in the portfolio and has invested $24 million in equity in the transaction.
The industrial properties are located in strong urban logistical locations across the UK, including London and the South East, Yorkshire and the Midlands. The portfolio is 100% occupied with rents in place at a significant discount to current market rates.
Since January 2022, the Kennedy Wilson team has acquired more than 41 industrial assets in the UK, Ireland and Spain for a total of $645 million, including $167 million in contract deals, and continues to develop a pipeline of attractive future opportunities. This will bring the overall European industrial platform to 98 assets. Including pending deals, total European industrial assets under management are expected to grow 61% year-to-date, from $1.1 billion to $1.7 billion, which will be secured by about $900 million in mortgage debt. Kennedy Wilson owns an average stake of about 20% in the European industrial platform and receives management fees.
“This acquisition provides access to a diverse portfolio of strategically located urban logistics assets,” said Mike Pegler, UK Head of Kennedy Wilson. “The team has outperformed in its ability to develop the European industrial platform, and we remain confident in the future growth trajectory, which is based on solid fundamentals. With support for the sector in the first quarter of the year exceeding 10 million square feet for the first time since 2018, we expect robust e-commerce growth, a continued supply and demand imbalance and growth resulting rents to further enhance the value of industrial capital.
Nico Fourie, CEO of Leftfield Advisors Ltd, comments: “Leftfield has achieved its objective of accumulating and optimizing this portfolio, the sale of which places it well positioned to unlock significant value over time. Along with digital adoption, partial de-globalization is driving onshoring, nearshoring, and reshoring, making logistics assets increasingly critical in the pursuit of greater supply chain efficiency. It’s business as usual for Leftfield as we continue to acquire assets in our upcoming urban and last mile logistics portfolio.
About Kennedy Wilson
Kennedy Wilson (NYSE: KW) is a leading global real estate investment firm. We own, operate and invest in real estate through our balance sheet and investment management platform. We focus on multi-family and office properties located in the Western United States, United Kingdom and Ireland. For more information on Kennedy Wilson, please visit: www.kennedywilson.com.
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