DLA Piper has advised Aviva Commercial Real Estate Finance (Aviva), and multiple officeholders appointed by Aviva, on the disposal of a distressed portfolio of 180 mixed use properties located across the UK to Kennedy Wilson Europe Real Estate Plc (KWE) for £503 million. KWE's acquisition of the portfolio is expected to complete at the end of January.

The 3.5 million sq ft portfolio generates total net rental income of £36.1 million. Its geographic concentration is predominately England, 54% weighted towards London and the South East with 5% of value weighted towards Scotland and Wales. The primary sector use is retail, food and convenience, comprising 62% of the value of the portfolio followed by leisure at 14%, industrial at 12%, and office and hotels at 6%, respectively.

Properties within the portfolio include the likes of the Travelodge hotel in King’s Cross, London, the Waitrose Superstore in Saltash, Cornwall and the Asda Superstore in Hemel Hempstead.

Simultaneous with the acquisition, a senior debt facility has been agreed with Aviva for £352.3 million, reflecting an LTV on the portfolio of 70%.

The cross-practice DLA Piper team from across the firm's UK offices was led by London Head of Restructuring, Michael Fiddy, and comprised partners Amy Jacks (Restructuring), Mark Lynch (Real Estate), Drew Wallace (Real Estate) and senior associates Ruth Williamson (Real Estate) and Maryam McLoughlin (Restructuring).

Mayer Brown advised KWE.