5th May 2016 07:04
LONDON (Alliance News) - Kennedy Wilson Europe Real Estate PLC on Thursday said its portfolio remains robust with good occupational demand across its core sectors and geographies in the first quarter, and announced it had completed two acquisitions, totalling just under GBP150.0 million.
The FTSE-250 listed property investor said it completed GBP19.1 million of acquisitions in the year to the end of March, and announced it has completed a further two acquisitions in separate announcements on Thursday.
Kennedy Wilson said it has purchased Towers Business Park in South Manchester from private equity firm Loan Star Management Europe Ltd for GBP82.0 million, reflecting a topped-up yield of cost of 6.7%. The business park comprises of ten prime suburban offices totalling 289,100 square feet. The portfolio is 96% let, Kennedy Wilson added.
Kennedy Wilson also announced it has purchased two suburban office assets in Sandyford and Blackrock in South Dublin for an aggregate consideration of EUR76.9 million. The company said the purchase price of the site in Sandyford of EUR62.5 million reflects a yield on cost of 4.0%, with the building only 68% occupied. The property in Blackrock, bought for EUR14.4 million, reflects a yield on cost of 6.8% and is 98.5% occupied.
All three acquisitions will be funded from Kennedy Wilson's existing cash resources.
Kennedy Wilson added that it is on track to deliver its targetted disposal programme of GBP300.0 million, having sold GBP143.9 million of assets in the period to the end of March. Kennedy Wilson said this takes its total sales as at period end to GBP268.5 million, generating an average unlevered capital return of 24% over a hold period of 17 months and are 6.4% ahead of preceding valuations.
It said this, along with its "active sales pipeline currently being marketed", means it is well placed to meet its target.
Kennedy Wilson noted that broader market concerns have not impacted its disposals to date, given the smaller lot sizes of its sales. Its portfolio stands at GBP2.78 billion across 287 properties currently, Kennedy Wilson added, with portfolio occupancy at 95.8%.
The company said its quarterly interim dividend remains at 12.00 pence per share, and Kennedy Wilson said it was on track to deliver and annualised 48.00p per share for 2016.
"Our portfolio remains in a robust position with good occupational demand across our core sectors and geographies. We also have an ample level of liquidity for acquisitions should we wish to capitalise on any potential market dislocations," said President and Chief Executive Mary Ricks.
By Hannah Boland; [email protected]; @Hannaheboland
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