Kennedy Wilson Europe Real Estate has announced that it has completed the sale of the Avon Loan Portfolio for £100.3m. The sale is to a UK infrastructure fund and reflects an exit yield of 6.5%. Net cash proceeds amount to £99.1m. The Avon loan portfolio was acquired on June 2014 for £93.5m, reflecting a yield on cost of 7.3%. The portfolio comprises five fire control centres, totalling 114,900 square feet, which are leased to the UK Government. The properties are located on business parks in Cambridge, Castle Donington, Durham, Wakefield and Wolverhampton.
The company say that the Avon portfolio has delivered robust unlevered returns to the Company with 15.3% return on cost and 10.0% unlevered IRR; both ahead of business plan targets and timing. They also say that the sale forms an important part of their £300m non-core disposal programme which remains on track. A further update will be provided with the company’s full year results in February.
Kennedy Wilson Europe Real Estate sells Avon Loan portfolio for £100.3m : KWE