KWE completes acquisition of logistics property in Chelmsford for £10.5m
Kennedy Wilson Europe Real Estate Plc (LSE: KWE) an LSE listed property company that invests in real estate across the UK, Ireland, Spain and Italy, has completed the acquisition of Duke Park, Chelmsford, a 160,000 sq ft logistics property, from a local real estate company for £10.5 million, reflecting a yield on cost of 6.75%. The acquisition will be funded from the Company’s existing cash resources.
The property is 100% occupied and let to an international logistics business for a term expiring in April 2019, with a tenant’s option to extend the lease until October 2023.
Including this acquisition, KWE’s UK industrial portfolio includes 34 assets, over 2.9 million sq ft, with an aggregate portfolio value of £191 million. It is 98% occupied with a WAULT of 6.1 years (7.1 years to expiry).
Mary Ricks, President and CEO of Kennedy Wilson Europe, commented: “The acquisition of Duke Park complements our existing UK industrial portfolio with significant value-enhancing asset management upside. The prime position in Chelmsford alongside low average in place rents of £4.75 psf provides us with options to grow income and enhance values.”
Strutt & Parker and Harwin advised KWE on the acquisition.