BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Global real estate investment company Kennedy Wilson (NYSE: KW) and its equity partner have closed on the acquisition of The Heights, a 348,000-square-foot institutional quality office campus with five buildings across 25 acres in the Greater London sub-market of Weybridge for £136 million, reflecting a cap rate of 7.1 percent.
The partnership invested £64 million of equity in the off-market transaction. Kennedy Wilson’s ownership interest in The Heights is 51 percent.
“The Heights offers a unique opportunity to recycle proceeds from recent U.K. sales where we completed our business plans into a top-tier office asset in one of Greater London’s strongest markets with office vacancy rates at less than five percent,” said Mike Pegler, Head of U.K. for Kennedy Wilson. “We are well positioned to replicate the success we’ve had at our other South East office properties. The Heights will form part of our long-term U.K. portfolio, where we can improve NOI through planned capital and asset management, focused around tenant engagement programs.”
The Heights is currently 97% occupied, with a weighted average lease term of 4.8 years and rents below current local market rents. The office campus features a strong line up of corporate tenants including Alliance Boots, AXA, Samsung, Royal Caribbean Cruises and PGS Exploration.
The Heights is located in close proximity to London’s orbital motorway, M25, which connects to Heathrow and Gatwick airports, and offers connectivity by train to Central London.
About Kennedy Wilson
Kennedy Wilson (NYSE:KW) is a global real estate investment company. We own, operate, and invest in real estate both on our own and through our investment management platform. We focus on multifamily and commercial properties located in the Western U.S., UK, Ireland, Spain, Italy and Japan. To complement our investment business, the Company also provides real estate services primarily to financial services clients. For further information on Kennedy Wilson, please visit: www.kennedywilson.com.
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