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.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

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.

Read more on

Suggested Articles

The Peppers Airlie Beach resort in north Queensland is up for sale via an International expressions of interest campaign.

Ahead of the Mediterranean Resort & Hotel Real Estate Forum, Atrium Hotels' Athinagoras Konstantinidis discusses hotel opportunities and challenges.

The Radisson Red Miraflores has 100 guestrooms, a games studio and a fitness center.