Kennedy Wilson adds 2 UK warehouses to logistics portfolio

Global real estate investment company Kennedy Wilson has acquired two industrial warehouse assets in the UK totaling 181,500 ft2 (16,860 m2) via separate transactions.

The properties occupy prime distribution locations within the UK’s logistics Golden Triangle and core South-East market.

Situated only eighteen miles north-east of central London, the single-let unit at Westside Business Park comprises 76,040 ft2 and is fully let to GXO Logistics, the world’s largest pure-play contract logistics provider. The asset is adjacent to Kennedy Wilson’s existing asset Spire Green Industrial Estate, bringing Kennedy Wilson’s footprint in Harlow to 12.5 acres.

The second acquisition comprises a 105,415 ft2 industrial unit at Moulton Park, an established industrial location in Northampton with nearby tenants including Toolstation, Screwfix and UPS. The asset is fully let to Great Bear Distribution, a leading UK ambient 3PL business providing nationwide contract logistics and supply chain management services, which is wholly owned by Culina Group.

Kennedy Wilson plans to undertake an active asset management strategy to upgrade the sustainability performance of the assets, targeting improved EPC ratings, as well as value-add capital expenditure initiatives to improve the individual buildings.

These recent investments grow Kennedy Wilson’s total industrial and logistics AUM in the UK to £1.1 bn, comprising 8.3 million ft2t across 79 assets, with occupancy at 96.8%.

'As we continue to deploy capital in the industrial sector, these two transactions demonstrate Kennedy Wilson’s ability to successfully source and execute acquisitions with opportunity for value enhancement through asset management initiatives,' said Mike Pegler, president, Kennedy Wilson Europe. 'We believe these well-located industrial assets will enable us to capture rental growth by capitalising on the acute supply and demand imbalance driven by continued occupier demand for modern, well-specified assets in key markets with strong underlying fundamentals.'

Kennedy Wilson was advised by Gerald Eve on the acquisition of Westside Business Park, Harlow and by DTRE on the acquisition of Moulton Park, Northampton.


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