The sales generated approximately $33 million of net cash proceeds to Kennedy Wilson, which the company expects to recycle into other European investment opportunities and to fund existing development projects. The combined sales will result in approximately $10 million of gains to Kennedy Wilson.
The portfolio is fully leased to Carrefour, a grocery chain that is Europe’s largest retailer and Spain’s second largest supermarket. The portfolio includes 418,000 square feet, with most of the rental income concentrated in prime locations in Madrid and Barcelona.
Peter Collins, President of Kennedy Wilson Europe, said: “Since acquiring the properties in 2015, we strengthened the performance of the portfolio through our asset management program that included improving the lease terms with Carrefour. Our asset management program coupled with the robust grocery retail market and attractive local economic fundamentals resulted in a strong total return to Kennedy Wilson as we continue to focus on disposing non-core assets.”
