Kennedy-Wilson Holdings, Inc. (NYSE: KW) disclosed that it has purchased a high-quality, diverse portfolio of 20 UK urban logistics assets worth 1.3 million square feet for $287 million from UK logistics specialist Leftfield in an off-market deal. Kennedy Wilson owns a 20% stake in the portfolio and puts $24 million of its own money into the deal.
Leftfield has achieved its goal of accumulating and optimizing its portfolio, and its sale puts it in a strong position to unleash significant value over time. Partially deglobalization is driving onshoring, nearshoring, and reshoring, making logistics assets even more important in the search for higher supply-chain efficiencies.
KW believed that this acquisition provides access to a diverse portfolio of strategically situated urban logistics assets. The team has succeeded in terms of growing the European industrial platform, and the company remains optimistic about the future development trajectory, which is supported by solid fundamentals.
Since January 2022, the Kennedy Wilson team has purchased more than 41 industrial assets worth a total of $645 million in the United Kingdom, Ireland, and Spain, including $167 million in acquisitions under contract, and continues to build a pipeline of appealing potential prospects. This will boost the total number of assets on the European industrial platform to 98. Kennedy Wilson owns roughly 20% of the European industrial platform and is paid as a manager.
Furthermore, the company confirmed that recently acquired industrial properties are located in key metropolitan logistical hubs across the United Kingdom, including London and the Southeast, Yorkshire, and the Midlands. The portfolio is fully leased, with in-place rentals that are significantly lower than current market rates.