LONDON-Beverly Hills, CA-based Kennedy Wilson has crafted an acquisition of some 1.1 million square feet of assets throughout the UK. While details were light, GlobeSt.com has learned from sources familiar with the deal that the partner was Michigan-based hedge fund Verde Partners, which has offices here.
The portfolio consists of some 29 assets, mostly office but also including retail and industrial, found predominately in London and through the southeast of the UK.
The portfolio generates an annual yield of 15%. KW contributed $21 million to the all-cash deal. The portfolio was purchased out of a CMBS pool.
“This portfolio is an excellent mix of assets with significant value-add opportunity,” said Mary Ricks, president and CEO of Kennedy Wilson Europe. “We believe that our asset management expertise will allow us to maximize the potential of the properties and provide excellent returns for Kennedy Wilson and our partner.” KW has been very active in Europe of late.
In the past year, it completed $1.5 billion of acquisitions in Europe, including $1 billion of acquisitions since the beginning of Q4. KW’s contribution to this volume totals $131 million.