LONDON-Kenmore has made its first foray into continental Europe with the €25 million ($27 million) purchase of a portfolio of eight French industrial estates from MMI Industries. The properties are all located in the Ile de France region, focussed on the Francilienne and the A86 orbital road routes around Paris.
The portfolio comprises approximately 430,000 ft2)sf of industrial space let to 49 tenants. The current income totals approximately €2.715 million ($2.9 million) which provides a 10% net initial yield.
This first deal was quickly followed by Kenmore agreeing to fund a 76,000-sf prelet industrial development in Evry, near Paris. The purchase price was € 4 million ($4.3 million) again producing a net initial yield of 10%. King Sturge advised Kenmore in both transactions.
And more such deals are likely to follow, according to Kenmore Director Rob Brook. “We have earmarked £100 million ($160 million) to invest in the French industrial market which we hope to invest over the next 12 months. We will then turn our attention to other geographical markets,” Brook said.
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