Kennedy Wilson Europe is close to purchasing a £210m portfolio of offices in the South East from Apollo Global Management and M&M Asset Management.
The price for the nine-asset South East portfolio reflects a yield close to 8%.
The assets have undergone relatively little asset management since the duo bought them individually for around £165m in 2013. They are due to make a profit of close to £50m, selling out early from a five-year plan, due largely to the rapid improvement in the market since then.
However, the portfolio is still seen as having large scope for improvement and the buyer is understood to believe in major uplift in rental values in the South East in the coming years and the capital value of the deal is below long-term averages.
The shrewd timing of its purchases will further enhance Apollo’s track record and help the company seed and market its next fund – European Principal Finance III.
The South East portfolio includes:
• 1, 2, 3 Leavesden Park, Watford
• Edinburgh Gate, Harlow
• 1, 2 Bartley Wood, Hampshire
• Discovery Park, Farnborough
• 6 Roundwood Avenue, Stockley Park
• Thames House, Bracknell
• Eton House, Maidenhead
• Axis One, Langley
CBRE is selling the portfolio.
david.hatcher@estatesgazette.com
