Towers sold for £82m
Kennedy Wilson Europe Real Estate has bought Towers Business Park in South Manchester from US investor Lone Star, reflecting a net initial yield of 6.7%.
Towers Business Park is made up of 10 offices, totalling 289,100 sq ft.
The offices are let to 21 occupiers, including John Lewis, British Airways, Honeywell, Oracle, Syngenta and Cisco. The portfolio is 96% let.
Towers was previously owned by Property Alliance Group, which sold the estate to Lone Star in January 2015.
Kennedy Wilson is a property company listed on the London Stock Exchange, and invests in direct real estate and real estate loans in Europe.
Mary Ricks, president and chief executive of Kennedy Wilson Europe, said: “The acquisition of Towers complements our existing suburban office portfolio acquired in the South East of England in July 2015. The portfolio provides best in class location, quality and blue-chip tenant roster with significant value-enhancing asset management angles.
“We expect to deliver 20% reversion between passing rent and ERVs. Upon completion of asset management plans, we anticipate the stabilised yield to grow to by 8%.”