LONDON—Kennedy Wilson Europe announces that ithas closed on a portfolio of 180 mixed use properties locatedacross the UK from multiple receivers on behalf of AvivaCommercial Real Estate Finance for a purchase price of$785 million (£503M), reflecting a net initial yield of 6.9% (grossyield 7.2%).

The acquisition is expected to complete at the end of Januaryand will be funded from the company's cash resources and a new $549million (£352.3M) secured loan facility with Aviva.

"This significant portfolio acquisition allows us to access ahigh quality mixed use portfolio with strong tenant covenantsgenerating robust income streams at a material discount to theoriginal loan amounts, said Mary Ricks, presidentand CEO of Kennedy Wilson Europe. “The portfolio benefits from anumber of institutional quality investments with good individualasset liquidity across the remaining portfolio. There aresignificant asset management angles, including growing incomethrough lease re-gears, renewals, rent reviews and the leasing upof vacant space. We are pleased to have vendor finance provided onsuch a material transaction and to be adding Aviva to KWE'sportfolio of lenders."