Jan. 11 (Bloomberg) -- Kennedy-Wilson Holdings Inc., a Beverly Hills, California-based real estate investor, agreed to buy 29 office and industrial buildings in the U.K. for about $100 million, according to a person with knowledge of the talks.
The company, in partnership with a European investor, probably will complete the deal today, said the person, who asked not to be identified because the transaction is private. The buildings are in secondary cities, according to the person.
Demand for properties in primary markets such as London has “created a highly competitive environment,” lowering yields and increasing investor interest for deals in less-costly cities, Jones Lang LaSalle Inc. said this month.
“As the supply of prime assets reduces but competition remains strong, we expect that many domestic funds will start to consider alternative opportunities,” the brokerage said in a Jan. 3 report.
Christina Cha, a Kennedy-Wilson spokeswoman, declined to comment on the transaction.
Kennedy-Wilson and its partners spent $2.9 billion on purchases last year. The company in December said it and a partner bought a loan with an unpaid balance of 120 million euros ($159 million) that’s secured by a Dublin office building and adjacent land. The company also last month announced the acquisition with partners of three office buildings in the Los Angeles area for a total of $78.5 million.
Kennedy-Wilson, with Irvine, California-based IHP Capital Partners, also is spending about $300 million on Kohanaiki, a new golf-and-residential development on the Kona Coast of the Big Island of Hawaii.
To contact the reporter on this story: Nadja Brandt in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Kara Wetzel at email@example.com