28th Oct 2015 07:44
LONDON (Alliance News) - Kennedy Wilson Europe Real Estate PLC on Wednesday said it has agreed to acquire a portfolio of nine offices in Italy currently fully let to the Italian government.
The FTSE 250-listed property company said it is acquiring the portfolio for EUR185.5 million from InvestiRE SGR, the management company of the closed-end mutual property investment fund Fondo Immobili Pubblici.
The portfolio includes nine office buildings production EUR12.1 million in annual rent. The net initial yield on the purchase is 6.3%.
"This is KWE's first investment in Italy, having kept a close eye on the market since IPO. This is an exceptional portfolio backed by strong covenants to the Italian government with long unexpired lease terms relative to local leases," said Kennedy Wilson Chief Executive Mary Ricks.
"The portfolio includes institutional quality assets with significant reversionary potential, redevelopment angles and good liquidity of smaller assets with good income returns and a sticky government tenant," Ricks added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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