Kennedy Wilson is buying a further €120m (£95m) of Irish assets including the Marshes shopping centre and the Elliott loan portfolio from Ulster Bank.
The investment firm’s listed vehicle, Kennedy Wilson Europe Real Estate, said the loan portfolio was backed by 13 assets, which form part of RBS Capital Resolution.
Three of the offices, industrial, retail and residential properties comprise 90% of the loan portfolio by acquisition value, which is being bought for €75m.
These include:
- The Times Building, a 67,000 sq ft, Grade A office building in Dublin City Centre with a 12-year WAULT to the Irish Aviation Authority, a semi-state body of the Irish government;
- Herberton, a multi-family housing asset in Dublin 8, situated near St James’s Hospital, comprising more than 150 flats located across three blocks, which are 100% let; and
- Lakeland Retail Park, a 83,052 sq ft retail park on the outskirts of Cavan Town, comprising six shops and a drive-through restaurant. The retail park is circa 91% let to a range of tenants including Halfords, Heatons and Toymaster, with a circa 12-year WAULT.
KWERE said the assets within the Elliott loan portfolio had significant asset management opportunities to lease up vacant space, stabilise income through tenant re-gears, and reposition assets to maximize income.
The acquisition is expected to complete in early September 2014.
The firm has entered into another agreement with Marshes Shopping Centre Limited to acquire the Marshes Shopping Centre in Dundalk, Ireland, for €44.5m.
Completed in 2005, the Marshes Shopping Centre comprises 39 shops and a food court, and is currently around 93% let to tenants including River Island, New Look, Clarks, Dorothy Perkins and Boots, with a WAULT of circa 6.8 years.
The shopping centre provides a number of asset management opportunities across the existing scheme, as well potential for further enhancement through development.
The acquisition is expected to complete at the end of August 2014.
Mary Ricks, president and chief executive of Kennedy Wilson Europe, said: “We are very pleased with our two new acquisitions. The Elliott loan portfolio is secured against a good quality mix of Irish properties strongly weighted towards the office, residential and retail sectors. These assets, along with the Marshes Shopping Centre, also provide for strong upside potential through interesting asset management plays and a relatively long WAULT.”
bridget.o’connell@estatesgazette.com
