Inside Logistics

Kennedy Wilson and GIC form joint venture

Plan to acquire and manage urban logistics properties in the U.K., with the potential to expand into Ireland and Spain

December 23, 2020

BEVERLY HILLS, Calif. – Global real estate investment company Kennedy Wilson and GIC, a global investment firm that manages Singapore’s sovereign wealth fund, have entered into a joint venture to acquire and manage urban logistics properties in the U.K., with the potential to expand into Ireland and Spain.

The joint venture will be seeded with a US$220 million portfolio comprising 18 urban logistics assets in prime locations in the UK. The assets are currently wholly owned by Kennedy Wilson. The JV will seek additional last-mile urban distribution centre 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 20 per cent ownership and GIC will have 80 per cent ownership of the JV.

“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,” said Mary Ricks, president of Kennedy Wilson.

“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.”

“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,” said Lee Kok Sun, chief investment officer of real estate, GIC.

“The Joint Venture’s focused strategy, with the management of a skilled partner such as Kennedy Wilson, is well-placed to capitalize 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.”

Kennedy Wilson focuses on multifamily and office properties located in the Western U.S., U.K., and Ireland.

GIC was established in 1981 to manage Singapore’s foreign reserves. Headquartered in Singapore, GIC has investments in over 40 countries and employs over 1,700 people across 10 offices in key financial cities worldwide.