Kennedy Wilson adds to Irish portfolio

International property investment firm Kennedy Wilson has — via its London-listed Europe Real Estate fund — invested a further €45m in the Irish market by acquiring significant assets from both Nama and the IBRC.

The €29.8m purchase, from Nama, of the 138-room Portmarnock Hotel & Golf Links represents the company’s first hotel acquisition, while agreement has also been reached on the acquisition — for €14.8m — of the multi-family Liffey Trust Building in Dublin’s docklands, from the IBRC.

Kennedy Wilson Europe’s president and CEO, Mary Ricks, said the two acquisitions demonstrate the company’s “robust sourcing capabilities” in Ireland and its strong relationship with financial institutions.

“The acquisition of this boutique and profitable hotel and golf course, at an attractive price, and a high quality income-producing multi-family scheme are both very strong additions to our growing portfolio and are in line with our stated investment strategy,” she added.

The Liffey Trust transaction is due for completion later this month and the building is running at 95% occupancy levels.

Kennedy Wilson said yesterday that its plan is to “enhance the tenant offering”, which, it added, should underpin rental growth over the next few years.

Upon completion of the Portmarnock assets, in early July, the company said it intends to add value via further strategic investment and capital expenditure, “as well as through the appointment of a proven operator to the currently unbranded hotel”.

In a note, Davy Stockbrokers said: “These transactions provide Kennedy Wilson Europe with immediate exposure to Dublin’s hotel and residential markets, where robust demand and undersupply are driving RevPAR (revenue per available room) and rental growth, respectively. There is also the potential for upside, through effective asset management initiatives.”