Kennedy Wilson acquires part of Project Avon portfolio

The property specialist has reportedly paid £94m for a tranche of the latest loan portfolio put up for sale by Lloyds Banking Group.

Kennedy Wilson Europe Real Estate has reportedly agreed to buy part of Lloyds Banking Group’s Project Avon loan portfolio for £94 million (€116 million; $159 million).

The Project Avon portfolio of loans is one of the last to be put up for auction by Lloyds Banking Group as it aims to clean up its balance sheet.

Kennedy Wilson has agreed to acquire the loans within the portfolio that are secured against five Fire Control Centres across the UK, according to Property Week.

The assets are leased to the UK government with an annual rent of £7 million and an average lease length to expiry of 17 years.

Kennedy Wilson was unavailable for comment by press time while Lloyds were unable to comment.

Final bids for the remainder of the Project Avon portfolio are due in the next two weeks, according to the report.