Kennedy Wilson Europe has paid £68.5m to acquire a loan secured against the freehold interest in Pioneer Point, Ilford. The loan is non-performing and the unpaid principal balance of the loan is £149m. Kennedy Wilson reckon that the purchase price of the loan is materially below the replacement cost of the property.
Pioneer Point is a prominent mixed use development comprising 184,000 sq ft of residential accommodation across 294 units in two unbroken blocks. The North Tower includes 159 residential units over floors 3-32 which are currently operated as serviced apartments, with occupancy at c. 91%, while the South Tower has 135 residential units over floors 3-23, which were left vacant after practical completion. There is a three storey podium that contains 46,300 sq ft of retail space which is 83% let and benefits from a WAULT of c. 14 years.
The scheme reached practical completion in November 2012 and administrators were appointed over the developer in Q1-12.
The property is located within a five-minute walk of Ilford Station which has fast transport links into the City of London (via Liverpool Street) and Canary Wharf (via Stratford). Ilford will also benefit from the delivery of Crossrail in 2019 which will further improve access to Central London.
KWE : Kennedy Wilson buys Pioneer Point debt