5th May 2015 06:39
LONDON (Alliance News) - Kennedy Wilson Europe Real Estate PLC on Tuesday said it has acquired a non-performing loan secured on a site in Ilford in London for GBP68.5 million.
The FTSE 250-listed company, which invests in direct real estate and real estate loans, said it has acquired the loan from an unnamed financial institution.
It is secured against the freehold interest in Pioneer Point in Ilford, a mixed-use development comprising 184,000 square feet of residential accommodation, plus a three-story block of retail space.
Kennedy Wilson will pay GBP68.5 million for the loan, which has an unpaid principal balance of GBP149 million. It said the purchase price is materially below the replacement cost of the property.
"The acquisition of the Pioneer Point NPL gives KWE its first UK exposure to the private rented sector market where there is significant institutional demand and lack of available product," said Kennedy Wilson Chief Executive Mary Ricks.
"We aim to access the underlying real estate over the course of 2015 and look forward to implementing our asset management plan to materially improve the net operating income across the entire scheme, from GBP1.5 million currently, over the next 18-24 months to generate an improved and stabilised yield," Ricks added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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