News Column

Kennedy Wilson Europe Real Estate Buys UK Loan Portfolio From Lloyds

May 21, 2014

Samuel Agini

LONDON (Alliance News) - Kennedy Wilson Europe Real Estate PLC Wednesday revealed a deal to acquire a UK loan portfolio from Bank of Scotland PLC - a subsidiary of Lloyds Banking Group PLC - for up to GBP93.5 million in cash.

In a statement, Kennedy Wilson Europe Real Estate said the exact amount paid for the portfolio will be determined once conditions in the underlying agreements are satisfied.

The portfolio is made up of five real-estate loans. They are under receivership and secured against five high-tech properties located across England. Kennedy Wilson said the real estate loans have an initial net operating income of about GBP7.0 million, with increases in rent over the term of the leases. According to the real estate investor, the properties are let to strong tenant covenants on long leases, with an average lease length to expiry of about 17 years.

"Today's announcement is further evidence of the strength of our acquisition pipeline and is consistent with our strategy to invest in real estate and real estate loans with strong fundamentals in our target jurisdictions. The acquired loan portfolio is secured against assets with attractive yields on long term leases to a strong covenant, and represents a great opportunity to complement our growing European portfolio," Mary Ricks, director of Kennedy Wilson Europe Real Estate, said in a statement.

Kennedy Wilson Europe Real Estate is a closed-ended investment fund spun out by Kennedy-Wilson Holdings Inc of the US and floated on the London main market in February in a GBP750 million initial public offering.

Kennedy Wilson Europe Real Estate shares were Wednesday quoted at 1,015.00, down 0.3%.

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Source: Alliance News

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