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.
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.