Global real estate investment company Kennedy Wilson (NYSE: KW) and its partner have acquired Heathrow Estate, a high-quality multi-let industrial property in a prime distribution location in West London, for $111 million, excluding closing costs.
The income-producing asset, which comprises approximately 300,000 square feet of modern warehouse and ancillary office space, is 84 per cent leased to a diverse mix of occupiers, including Asendia, Tailsco, and HSS Hire.
Heathrow Estate provides attractive short—to medium-term opportunities to add value through the extension of existing tenant leases and the leasing of vacant units. Kennedy Wilson will also undertake an active asset management strategy to improve on-site services and upgrade sustainability performance, as well as review the possibility of future alternate uses.
Situated in West London, Heathrow Estate is strategically located in an established industrial hub. It benefits from direct access to Junction 4 of the M4, Heathrow Airport’s Cargo Terminal, and Junctions 13 and 14 of the M25.
This latest acquisition expands Kennedy Wilson’s investment management program and global industrial platform, which total over 12 million square feet and represent $2.1 billion of AUM. In the UK, Kennedy Wilson manages approximately $1.6 billion of industrial space, comprising approximately 9 million square feet, with an occupancy of 98 per cent.
Mike Pegler, president of Kennedy Wilson Europe, said;
“This acquisition demonstrates our ability to identify attractive investments in established distribution locations with strong underlying fundamentals that provide excellent potential for rental growth.
“We are pleased to expand our growing global industrial platform, and we are now focused on executing the business plan while leveraging our expertise to capture significant reversion through accretive and targeted capital expenditure.”
Kennedy Wilson has secured a ten per cent ownership interest in Heathrow Estate, a deal financed by equity and a $73 million secured loan. The company will earn customary fees for overseeing the asset management of the property, ensuring a sound financial structure for the investment.
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