KWE completes ten industrial leases growing rents by 11%
28 June 2016
Kennedy Wilson Europe Real Estate Plc (LSE: KWE) an LSE listed property company that invests in real estate across the UK, Ireland, Spain and Italy, has completed ten industrial lease transactions over 147,100 sq ft securing c. £1.0 million of rental income across six industrial assets.
The new leases are 10.8% ahead of previous passing rents and 3.3% ahead of valuer’s ERVs, and have improved occupancy across the six assets from 89.5% to 97.4% and extended the WAULT from 4.5 years to 5.4 years (to first break) and from 5.6 years to 7.2 years (to expiry).
KWE’s UK industrial portfolio includes 34 assets, over 3.0 million sq ft, with an aggregate portfolio value of £191 million. It is 98.1% occupied with a WAULT of 6.2 years (7.5 years to expiry).
Mary Ricks, President and CEO of Kennedy Wilson Europe, commented: “Strong industrial occupational demand and our ability to provide our customers with the right space in the right location has allowed us not only to lease up vacant space on attractive terms, but to also drive rental growth across the occupied portfolio where we have grown rents by c. 11% over previous passing.
“We continue to be attracted to the fundamentals of UK industrial, which provides strong cash flows with good asset management angles. Our overall UK portfolio, now 61% of our overall portfolio, remains in a robust position with strong occupancy at 96%, long average lease terms of 6.3 years (7.6 years to expiry) and only 5% of rent roll expiring this year.
“We are monitoring our target markets closely for disruptions as a result of the UK’s EU referendum decision. KWE benefits from ample cash liquidity of £428 million, a low cost of debt and no debt maturities over the next two years, allowing us to participate in any dislocation opportunities.”