Global real estate investment company Kennedy Wilson plans to expand its European logistics platform by an additional $1.5 billion(appr. €1.4bn), with a focus on acquiring and managing urban logistics properties across the UK, Ireland, and Spain.
Kennedy Wilson said its European logistics platform would continue to seek additional last-mile logistics investment opportunities, targeting total assets of up to $2.5 billion, up from an initial target of $1 billion.
The Kennedy Wilson team has acquired more than 80 last-mile urban distribution centers totaling approximately $1.4 billion in the last 15 months, including deals under offer, and developed a strong pipeline of future opportunities. The next tranche of capital will continue Kennedy Wilson’s strategy of targeting assets that provide attractive yield on cost within a 30-minute drive of populated urban locations. Kennedy Wilson has 20% ownership in the platform and earns fees as manager.
“We are thrilled to expand our logistics platform at a time when there are so many compelling opportunities for industrial investment in Europe,” said Kennedy Wilson President Mary Ricks. “Logistics acquisition has evolved into one of our main investment themes, and supports our overall goal of expanding Kennedy Wilson’s investment management platform, which has more than doubled in the last three years.”
“The considerable growth of e-commerce continues to drive strong tenant demand from businesses expanding their distribution networks by occupying logistics properties with last mile delivery capabilities in city centers,” said Fiona D’Silva, Head of Investment, Europe. “We expect this tight supply/demand imbalance to continue, driving the growth of our platform across Europe with our prestigious, global investment partner and generating resilient returns in the long-run.”