U.S. firm buys office property in London for £204m
Kennedy Wilson Europe Real Estate has completed the acquisition of the corporate vehicle that owns 111 Buckingham Palace Road in London from Kish Holdings Ltd., an entity managed and controlled by Green Property Ventures. JLL advised KWE, and CBRE advised the vendor.
The underlying real estate is valued at £207.5 million ($329.6 million) reflecting a gross yield of 5.1 percent, which is expected to rise to 7percent following execution of asset management plans. The acquisition was undertaken by way of a share purchase for a net purchase price of £204.3 million ($324.5 million). The acquisition will be funded from the company's cash resources.
“111 Buckingham Palace Road provides KWE with an exciting opportunity to enter the thriving Victoria market, where class A office vacancies sit at only 1.5 percent and prime headline rents exceed £80 [$127.06] per square foot,” said Mary Ricks, president and CEO of KWE,