KWE revalues properties

Kennedy Wilson Europe Real Estate — which bought significant commercial properties in Dublin in recent years — yesterday released strong figures for the first half of the year.

KWE revalues properties

It said the value of its portfolio of 279 properties across Europe stood at £2.2bn (€3.2bn). Net profit rose to £149.3m at the end of June from £24.2m a year earlier and it paid a quarterly dividend of 10p, up from 2p in June last year.

“These solid financial results demonstrate significant progress across the business,” said Charlotte Valeur, chair of Kennedy Wilson Europe.

Eamonn Hughes at Goodbody Stockbrokers said that Kennedy Wilson Europe had posted rental, hotel, and loan income of £79.9m, with revaluations of £119.5m. “Revaluation of investment property of £112.6m were driven by office real estate assets, where valuations increased by £79.9m.

“Revaluations were broadly evenly split between Ireland and the UK, therefore moves in rents in Ireland, particularly in office, are likely to have been a major factor in the revaluations,” he said.

Among its top ten assets in Europe are a number of properties in Dublin; Kennedy Wilson lists 40/42 Mespil Rd and Russell Court; Stillorgan Shopping Centre, Vantage at Central Park, Dublin 18; Baggot Plaza; and South Bank House.

“In the Dublin property market, where 89% of our Irish portfolio is located by value, this economic growth is translating into improved occupational demand across our key sectors,” it said.

It said that at Baggot Plaza it has planning permission for an additional net 37,700 sq ft of space, adding to the existing 91,600 sq ft building. A pre-let agreement has been signed with Bank of Ireland for a 25-year lease to occupy the entire building at a headline rent of €47.50 sq ft, delivering a yield on cost of 8.6%. At Stillorgan Village, it said planning permission has been submitted for a significant refurbishment, and at Portmarnock Hotel & Golf Links, it will submit plans later this year.

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