Kennedy Wilson's UK real estate buy includes hotels

Kennedy Wilson Europe Real Estate is buying 180 UK properties from receivers appointed by a unit of Aviva Plc for 503 million pounds or around $787 million, Bloomberg reports.

More than half of the assets being purchased by KWE are in London and southeast England and includes the Travelodge hotel in King’s Cross, according to a statement.

About 98 percent of the buildings’ space is occupied and the portfolio will give a net initial yield of 6.9 percent, KWE and Aviva said in a statement. The transaction is due to be completed at the end of January.

Virtual Event

Hotel Optimization Part 3 | January 27, 2021

With 2020 behind us and widespread vaccine distribution on the horizon, the second half of the new year is looking up, but for Q1 (and most likely well into Q2) we’re very much still in the thick of what has undeniably been the lowest point of the pandemic. What can you be doing now to power through and set yourself up for a prosperous 2021 and beyond? Join us at Part 3 of Hotel Optimization – A Virtual Event on January 27 from 10am – 1:05pm ET for expert panels focused on getting you back to profitability.

The deal will allow KWE to “access a high-quality mixed-use portfolio with strong tenant covenants generating robust income streams at a material discount to the original loan amounts,” President and CEO Mary Ricks said in a statement.

KWE will reportedly pay for the real estate with a 352.3 million-pound loan from Aviva and with cash.