Kennedy Wilson sells off Avon loan portfolio for GBP100.3m

Kennedy Wilson Europe Real Estate has completed the disposal of the underlying collateral to the Avon loan portfolio to an unnamed UK infrastructure fund for £100.3m.

The property company, which invests in direct real estate and real estate loans in Europe, said net cash proceeds amount to £99.1m.

The Avon loan portfolio, purchased by Kennedy in 2014 for £93.5m, comprises five fire control centres totalling 114,900 sq ft that are leased to the UK government.

The properties are located on business parks in Cambridge, Castle Donington, Durham, Wakefield and Wolverhampton.

Chief executive Mary Ricks said: “The sale of this non-core portfolio is a great example of our debt and asset management professionals working together to improve the security of income by amending the covenant strength, thereby growing the portfolio value.

“We resolved the loan by selling the underlying real estate where the leases are materially over rented and we anticipate limited future growth prospects.”

At 1037 GMT, Kennedy Wilson shares were down 0.2% to 1,091p.