New York-listed Kennedy Wilson is planning to pump an additional $1.5 billion into expanding its European logistics platform which will acquire more urban logistics assets in UK, Ireland, and Spain.
Kennedy Wilson’s European logistics platform had originally planned to deploy $1 billion in urban last- mile logistics in the region. However, the firm has already acquired more than 80 assets for a total of about $1.4 billion in the last 15 months, including deals under offer, and it has a pipeline of future opportunities.
Kennedy Wilson’s strategy is to target assets with an attractive yield on cost that are within a 30-minute drive of populated urban locations. The firm owns 20% of the platform itself and also earns fees as its manager.
“The considerable growth of e-commerce continues to drive strong tenant demand from businesses expanding their distribution networks by occupying logistics properties with last-mile delivery capabilities in city centres,” said Kennedy Wilson’s head of investment Europe Fiona D’Silva. “We expect this tight supply/demand imbalance to continue, driving the growth of our platform across Europe with our prestigious, global investment partner and generating resilient returns in the long-run.”