Kennedy Wilson Sells London Community for $130M
The property totals 294 units across two towers, located in the suburb of Ilford, England.
A pair of previously struggling London residential properties were sold after getting a second lease on life.
Kennedy Wilson sold Pioneer Point, a 294-unit community in London, to RealStar for $130 million. Located at 3-5 Winston Way in the London suburb of Ilford, Pioneer Point is made up of fully-furnished one- and two-bedroom units across two towers. The north tower includes 159 residential units throughout its third to 32nd floors while the south tower has 135 units throughout its third to 23rd floors, with rents starting at 1365 pounds, or $1,778.
According to Kennedy Wilson, the company purchased a non-performing loan secured against Pioneer Point in May 2015. Kennedy Wilson paid 68.5 million pounds, or roughly $89 million, for the loan and soon became owners of the property in February 2016. When Kennedy Wilson purchased Pioneer Point, the occupancy of the north tower was roughly 91 percent while the south tower was left vacant.
To bring momentum to the property, Kennedy Wilson pursued a thorough management plan that included lengthening the leases in the north tower while getting the empty south tower leased up. The new plans also included renovations to the vacant ground floor space which now includes an on-site concierge, resident lounges, meeting spaces, work pods, a quiet lounge, entertainment spaces with an open plan kitchen and dining room, a kids’ zone, a games room and a cinema. Pioneer Point also includes 35,000 square feet of commercial space that’s fully leased.
Mike Pegler, head of UK at Kennedy Wilson, said in prepared remarks that the company was able bring new life into Pioneer Point that resulted in a strong return for the firm.
Kennedy Wilson will use $127 million in net proceeds from the sale for new investment opportunities. Pegler also said in a prepared statement that the company will continue to sell off its non-core assets, recycle capital into other investment opportunities and fund its existing projects.
Kennedy Wilson has been active in markets outside Europe as it purchased a portfolio of 1,457 multifamily units spanning Washington, Oregon, Colorado, Nevada and New Mexico in December.