Kennedy Wilson has bought a portfolio of 20 urban logistics assets from Leftfield for $287m (£227m).
The 1.3m sq ft portfolio was bought in an off-market deal by Kennedy Wilson’s European industrial platform, with the US listed real estate investor putting in $24m of its own equity and taking 20% ownership.
The industrial properties are situated in strong urban logistics locations across the UK, including London and the South East, Yorkshire and the Midlands. The portfolio is 100% occupied with in-place rents at a significant discount to current market rates.
Mike Pegler, head of UK for Kennedy Wilson, said: “The team has outperformed in its ability to grow the European industrial platform, and we remain confident about the future growth trajectory, which is underpinned by strong fundamentals.”
He added: “With sector take-up in the first quarter of the year surpassing 10m sq ft for the first time since 2018, we expect robust e-commerce growth, a continued supply-demand imbalance and resultant rental growth to further enhance industrial capital values.”
Since January 2022, Kennedy Wilson has acquired more than 41 industrial assets across the UK, Ireland, and Spain totalling $645m, including $167m of deals under contract.
This deal brings its overall European industrial platform to 98 assets. Its total European industrial AUM is expected to grow by 61% year-to-date, from $1.1bn to $1.7bn, which will be secured by approximately $900m of mortgage debt.
Kennedy Wilson has an average ownership of approximately 20% in the European industrial platform and earns fees as manager.
Nico Fourie, chief executive of Leftfield Advisors, said: “Leftfield has met its objective of accumulating and optimising this portfolio, the sale of which leaves it well positioned for considerable value-unlock over time. In addition to digital adoption, partial deglobalisation is driving onshoring, nearshoring and reshoring, making logistics assets ever more critical in the pursuit of greater supply-chain efficiencies. It’s business as usual for Leftfield as we continue to acquire assets into our next urban logistics and last-mile portfolio.”
CBRE advised Kennedy Wilson.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
