FINANCE: Kennedy Wilson has confirmed it has completed the acquisition of a tranche of subordinated debt secured by Moises and Mendi Gertner’s Fordgate portfolio.
As revealed by Estates Gazette, the group’s listed vehicle, Kennedy Wilson Europe Real Estate, has bought “certain subordinated loans comprising the B1/B2/B3 loans ”.
Kennedy Wilson said that the loans have an unpaid principal balance of circa £119m and were purchased at an undisclosed discount, thought to reflect a purchase price of circa €40m.
These loans are subordinate to a circa £258m securitisation as at 23 January 2014.
The 21-strong mixed-use Fordgate Jupiter portfolio comprises a mix of office, car showroom, leisure, retail and distribution properties. The mostly high-quality institutional assets show strong tenant and investor demand and good individual asset liquidity.
In addition to this loan acquisition, KWE has investments in two portfolios of properties, comprising in aggregate 40 office, industrial and retail properties of around 2.6m sq ft in aggregate, located across the UK.
Mary Ricks, a non-executive director on the board of the company, said: “This acquisition demonstrates the company’s unique ability to source real estate-related investment opportunities and enhances its footprint across various asset classes.”
bridget.oconnell@estatesgazette.com
