Kennedy Wilson buys portfolio of nine Italian offices for EUR185.5m

Kennedy Wilson Europe Real Estate has agreed to acquire a portfolio of nine offices in Italy fully let to the government for €185.5m.

The property company said it was buying the portfolio from InvestiRE SGR, which is the management company of the closed-end mutual property investment fund known as Fondo Immobili Pubblici.

Kennedy said the portfolio comprises nine office buildings occupied by Italian government ministries, generating a day one net operating income of €12.1m.

President and chief executive officer Mary Ricks said: "This is KWE's first investment in Italy, having kept a close eye on the market since IPO. This is an exceptional portfolio backed by strong covenants to the Italian government with long unexpired lease terms relative to local leases.

“The portfolio includes institutional quality assets with significant reversionary potential, redevelopment angles and good liquidity of smaller assets with good income returns and a sticky government tenant.”

At 0912 GMT, Kennedy Wilson shares were up 0.4% at 1,181p.