December 18, 2020 – Global real estate investment company Kennedy Wilson (NYSE:KW) and GIC, Singapore’s sovereign wealth fund, have entered into a joint venture (“the Joint Venture”) to acquire and manage urban logistics properties in the UK, with the potential to expand into Ireland and Spain.
The Joint Venture will be seeded with a $220 million portfolio comprising 18 urban logistics assets in prime locations in the UK. The assets are currently wholly owned by Kennedy Wilson. The Joint Venture will seek additional last-mile urban distribution center investment opportunities, targeting total assets of up to $1 billion.
Kennedy Wilson will be responsible for the sourcing, acquisition and management of the assets. Kennedy Wilson will have a 20% ownership and GIC will have an 80% ownership in the Joint Venture.
Mary Ricks, President of Kennedy Wilson, said, “We have witnessed the rapid growth of urban logistics properties driven by strong demand from businesses looking to grow their distribution networks with limited supply of space across major cities in our target markets. Over the last five years, we have significantly grown our footprint in this asset class. We are thrilled to partner with a preeminent global long-term investor like GIC to further capitalize on the exciting opportunities in this sector and to build out a premier urban logistics portfolio.”
Lee Kok Sun, Chief Investment Officer of Real Estate, GIC, said, “The logistics sector continues to be a long-term area of focus for GIC. We believe the urban logistics sub-market will benefit from positive fundamentals, due to increasing occupier demand driven by accelerating e-commerce adoption and changing supply chain management strategies. The Joint Venture’s focused strategy, with the management of a skilled partner such as Kennedy Wilson, is well-placed to capitalise on these trends and generate resilient returns in the long run. This partnership is part of GIC’s broader strategy to invest in this sector.”