Praxis, the private real estate investment platform, has bought 63 acres of Kings Hill town centre in Kent, adding close to half a million square feet of mixed-use commercial space to its portfolio, CoStar News can reveal.
Developed on the 650-acre former RAF West Malling airfield, Kings Hill is a mixed-use development in the centre of Kent.
Market sources said Praxis is paying around £40 million for the campus, which was being marketed by Prologis and Harbert Corporation at a guide of £68.25 million and a net initial yield of 8.82%. The campus last changed hands for £136 million in 2015. Prologis inherited the site via its $12.6 billion takeover of Liberty Property Trust.
The landscaped park is home to more than 50 businesses, including Rolex’s UK headquarters, over 3,200 homes, three schools and around 200,000 square feet of retail and leisure facilities.
The offices are let to or under offer to 36 tenants including AXA Insurance, Covea Insurance, Vistry Group and the NHS Property Services.
Kings Hill comprises 14 freehold and five long leasehold buildings and includes 492,041 square feet of offices.
James Hewitt, chief operating officer at Praxis, said in a statement: “We are excited to become a significant stakeholder in Kings Hill and believe our active real estate management and placemaking expertise can accelerate the successful evolution of the town.”
Praxis said it has worked closely with Kings Hill stakeholders to develop a long-term rebalancing strategy which will see part of the newly acquired commercial estate redeveloped alongside a significant inward investment to upgrade the core office portfolio into sustainable best in class Grade A accommodation.
Knight Frank advised Prologis and Harbert.