Global real estate investment company Kennedy Wilson has acquired One Embassy Gardens for $252 million, excluding closing costs, in an off-market transaction.
The recently completed building is 82% occupied by publisher Penguin Random House, with 8.3 years of term on the lease and a two-year rental guarantee from the vendor on the vacant space.
Mike Pegler, Head of UK for Kennedy Wilson, commented: “One Embassy Gardens represents an excellent opportunity to recycle proceeds following the recent opportunistic sale of our central London office asset, Friars Bridge Court, where we sold at a capital value of £1,600 per sq ft and a cap rate of 3.5%. We are now buying new modern stock at £1,140 per sq ft and cap rate of 4.5%, adding $12 million of day-one NOI to Kennedy Wilson with ongoing growth prospects as the area becomes more established and rents converge to levels similar to other Central London submarkets.”
“One Embassy Gardens is a high-quality, green-certified asset of scale with a secure income stream within one of the fastest-expanding submarkets of central London and it is set to further benefit from the ‘tech-clustering’ effect when Apple opens its HQ in 2022.”