Kennedy Wilson acquires two industrial warehouse assets in UK

Kennedy Wilson acquires two industrial warehouse assets in UK

Global real estate investment company Kennedy Wilson has acquired two industrial warehouse assets in the UK totaling c. 181,500 square feet 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 square feet 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 property benefits from excellent arterial connectivity, with Junction 7 of the M11 motorway and the M25 orbital motorway both within 11 miles, providing direct links to the UK’s wider motorway network as well as important transit routes into Greater London.

The second acquisition comprises a 105,415 square feet 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.

Located in a major logistics hub within the UK’s Golden Triangle, Moulton Park is well-connected to the M1 motorway via the A5, providing access to the north and south-east of the UK.

Kennedy Wilson will 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 £1.1bn, comprising 8.3 million square feet 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. Our team has a consistent track record of adding value to industrial assets and we remain focused on undertaking the individual business plans, leveraging our expertise in this area, and working closely with the existing occupiers.”

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