Kennedy-Wilson Holdings, Inc. (KW)
K current report submitted under section 13th or 15 (d)
Date of report of the Securities Trading Act of 1934 (
Date of reporting the earliest event)
March 23, 2017 Kennedy
Wilson Holdings Limited(
The exact name of the registrant specified in the articles of association)Delaware (
Registered State or other jurisdiction)001-33824 26-0508760 (
Commission file number)(
IRS employer identification number)151 S. El Camino Blvd.
Beverly Hills, California 90212 (
Main executive office address)(Zip Code)(310)887-6400 (
Registrant phone number, including area code)
If form 8-, please check the appropriate box below
K. filing is intended to simultaneously satisfy the registrant\'s filing obligations under any of the following terms: written communications under Rule 425 of the Securities Act (17 CFR 230. 425)
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According to Rule 14-2(b)
Under the transaction act (17 CFR 240. 14d-2(b))Pre-
According to Rule 13e-4(c)
Under the transaction act (17 CFR 240. 13e-4(c))ITEM 7. 01.
After the FD regulations of March 23, 2017 and the results announcement issued on February 24, 2017, Kennedy Wilson European real estate company (London Stock Exchange: KWE)
Publication of the fiscal year report and accounts for 2016 (
KWE also provided a notice of the annual general meeting to be held on April 26, 2017.
A copy of the KWE annual report is enclosed as Annex 99. 1. Kennedy-
Wilson Holdings Limited(the “Company”)
There are currently about 23.
KWE issued 7% of the total share capital. A wholly-
Under the investment management agreement, the company\'s incorporated subsidiary in Jersey also serves as an external manager for KWE.
Information in this report (
Including exhibition 991)
Provided for the purposes of the amended Article of the Securities Trading Act of 1934, shall not be considered as a \"submission \"(
, Or otherwise bound by the liability of this section, shall not be deemed to be incorporated in any filing by reference under the amended 1933 Securities Law, or the transaction act, regardless of any general merge language in that file. ITEM9.
01 financial statements and attachments (d)Exhibits. 99.
1 in accordance with the requirements of the Securities Trading Act of 2016, Kennedy Wilson European real estate corporation 1934 fiscal year report and account signature, the registrant has officially authorized the signatory to sign the report on its behalf.
Date: Kennedy, March 23, 2017
Wilson Holdings Limited
By:/S/justin enbody chief financial officer Justin INDEX display number description 99.
1 Kennedy Wilson European real estate corporation financial year report and accounts for 2016
Resource-rich real estate Annual Report and account 2016 Kennedy W. Ilson European Real Estate Co. , LTD/National Real Estate Co. , and 2016 Baggot Plaza, ccounts, dublin LEED Gold certification the content of this report Strategic Report 1 who are we 2 our business at a glance 4 our performance in 2016 8 Chairman introduction 10 investment proposal 12 our market 16 our business model we strategic and target group and EPRA measure 24 resources and relationship Investment 35 management risk 42 Performance Review 50 financial review governance 57 letter from chairman 59 our compliance statement 62 lead 67 nomination committee chairman letter 69 effectiveness 70 letter from the chairman audit committee 74 accountability 75 letter from the chairman of the management participation committee 76 remuneration 77 relationship with shareholders 78 report of directors 80 statement of directors\' responsibility financial 82 independent audit report 85 consolidated income statement 86 consolidated income statement 87 Consolidated Balance Sheet 88 consolidated equity change statement 90 Consolidated statement Cash Statement of flows notes to consolidated financial statements 145 Main property 146 portfolio 149 alternative performance indicators 150 additional disclosure of 154 directors, consultants and company information 155 shareholder information 155 financial calendar 156 definitions and Glossary for more information, please use the following tags to find page references for links to other content: for more relevant information, please go to the page for reference.
See the website for more. www. kennedywilson.
EU governance has read our framework, approach and how we manage our business.
Our market reads the main trends and conditions in our market.
Read 12 pages of investment advice on the reasons for investing in KWE.
Visit page 10, \"responsible investment\" for our priorities for 2016 and EPRA sBPR performance.
Go to page 27 to www. kennedywilson. eu/about-us/responsible-
Investment/unlock value 2.
Portfolio Management 1.
Bottom-up investment strategy 3.
Asset repositioning 4.
Strict capital management releases value we create a sustainable total return by releasing the inherent value of undersourced real estate.
Bottom-up investment strategy we adopt a bottom-up approach to underwrite every asset we acquire and believe that value can be found and increased under various market conditions.
Active asset and portfolio management our goal is to bring practical solutions to our users to meet their changing space needs while enabling us to increase the amount of revenue and sustainability
Asset repositioning many of our properties offers the opportunity to relocate, where we can develop or renovate to renovate the property, thereby significantly increasing the rental and capital value.
Strict capital management we strive to maintain the efficiency of our balance sheet and ensure that there is enough flexibility to support our strategy.
How do we do this, we are Kennedy Wilson European real estate, a real estate company that invests in real estate in the UK, Ireland, Spain and Italy.
Our portfolio of 2,882
2 million is mainly invested in office, retail, housing and industry, mainly in London and South East England and Dublin.
By strategically acquiring assets from suppliers of non-core real estate operators, our goal is to release the inherent value of the shortfall
Resource-rich real estate-insufficient real estate
Management or inadequate
Capitalization-create higher returns for our investors.
In 2016, the dividend per share increased by 37.
1% Dividends per share 48.
0 p earnings per share increased by 15 after adjustment.
Adjusted earnings per share 2% 55.
After 2 p per share, NAV increased by 3.
Adjusted NAV 5% per share of 1,215.
9 p. S. trateg. ic representative financial report Kennedy Wilson European real estate company Annual Report and Accounts 2016 1 UK 56% Ireland 31% Spain 7% Italy 6% euro portfolio 44% core se ctors 92% off _ ice 53% retail in Dublin 24% residential 9% industrial 6% Other 8% product portfolio, london southeast of D 62% d ublin 28% London 18% Southeast 16% area 38% 2,793 2015 2,882 2016 we busine SS in glanc electronic geography of geographical range of expand the euro zone accounted for investment combination value of 44%, higher than 35% in 2015.
Our portfolio is 2,882.
The 2 million real estate portfolio includes 213 direct real estate assets worth £ 2,814.
6 million and two loan portfolios mortgaged with 10 assets, valued at £ 67. 6 million.
Most of our portfolios are located in the UK and Ireland, accounting for 87% of the value of our portfolio, of which 62% are concentrated in Dublin, London and the southeast.
We focus on four core areas of office, retail, residential and industrial, accounting for 92% of the value of our portfolio.
Total portfolio value (£m)£ 2,882. 2 m 1.
Including hotel, entertainment assets and Inn loan portfolio kénéd y Wilson European Renren village Pl c Annual Report and exchange c o unts 016 Rong moon landing 2016 combination indicator --up NOI (£m)£163. 7m Occupancy (%)95% Under-
Rental portfolio (%)9. 3% WAULT (years to break)7.
Area 223 of assets in one year (sq ft)11.
Our £ 2,882 6 square feet.
Of the 2 million assets, 223 continued to have a strong occupancy rate of 95%, with a relatively long lease maturity of 7. 1 years (8.
9 Years Due)
Breakthrough in annualized-up NOI of £163.
7 million, of which c.
16% of our rent comes from fixed or inflation. linked uplifts.
KWE provided the best operating performance to date during the period from 2016, completing 140 commercial leasing transactions within 1 month.
The area is 1 million square feet, an increase of 4 pounds.
Annual incremental income of 0 million.
The demand for occupiers in our base market is still strong, not only leading to the success of a large number of leases, but also the transaction is completed at 11 and the price is attractive.
4% in advance of the rent passed before, premium 3.
ERVs 1% for appraisers
We have reduced our pool of assets from 302 properties at the end of 2015 to 223 at the end of 2016 with sales of GBP.
1 million, end the 0. 2 billion we announced earlier
The core disposal programme is six months ahead of our June 2017 target.
These sales span 1.
6 million square feet, the yield difference between the cost yield and the sales exit rate of return is a basis point, which is 4 premium than the previous book value.
8% and deliver cost return 31. 8% over a 21-
Monthly hold period.
For more details, see the main attributes and portfolio statistics on pages 145 to 148. 165. 7 2015 163.
7 2016 96 2015 95 2016 7. 3 2015 9. 3 2016 7. 3 2015 7.
Month 2016 cm 302 cm 2015 cm 223 cm 2016 cm of implementation. 8 2015 11.
Minyang 2016 S trateg ic rep o rt Johnson European real estate management financial data n u A l R é p o a n d c Ü n t s 2016 month Main financial information on how to conduct fixed and hedge bonds in 2016 92% set d 71% Hed géd v ia interest rate c ap 21% FLoA 8% 1,025. 2 1,174. 5 1,215.
2014 2015 2016 6. 0 35. 0 48.
2014 2015 2016 2. 9 3. 0 2015 2.
4 Net asset value adjusted for financial performance of 2014 2016 per share 3.
Adjusted net asset value per share increased by 5% to 1,215. 9 pence (
December 2015: 1,174. 5 pence).
Dividends increased to 48 in 37%.
0 p per share (£64. 4 million)
2016 contrast 35.
0 p per share for 47.
2015 5 million.
Income Statement for December 31, 2016 net operating income for December 31, 2015 (£m)160. 3 130.
International Financial Reporting Standards for net profit after monthly tax (£m)66. 0 259.
0 Adjusted income (£m)74. 1 65. 0 adjust eps (p)55. 2 47. 9 DPS paid (p)48. 0 35.
DPS announced in the 0 Quarter (p)12. 0 12.
0 assets sheet December 31, 2016 December 31, 2015 adjustment after the assets net worth (£m)1,533. 7 1,596. 5 IFRS NAV (£m)1,535. 9 1,629.
Adjusted net asset value per share (p)1,215. 9 1,174.
Net asset value per share of the International Financial Reporting Standards (p)1,217. 6 1,198.
5 valuation changes (£m)-8. 6 211. 8 Net debt (£m)1,234. 8 1,109.
6 loan value (LTV)(%)42. 8 39.
7 Debt Unsecured debt now accounts for 57% of total debt, 92% of which are fixed and hedge debt, with an attractive Weighted average debt cost of 3%.
Adjusted net asset value per share (p)
Dividend per share (p)
Weighted average cost of debt (%)
Fixed and circumvented debt Jian Wilson n u A l R e p o a n d c o u t s 2016 Month of European real estate Plc. 6 3. 0 2. 7 2.
4 Retail of residential industry 17 15 13 6-
Changes in the total valuation of industrial retail valuation components (£m)(8. 6)Like-for-Like valuation (16. 6)
2016 acquisition valuation 2.
6 2016 disposal valuation 5.
4 Change time of total valuation (£m)H1 47. 4 H2 (56. 0)
Euro (currency with change in total valuation)£m)69. 0 Sterling (£m)(77. 6)
Department\'s contribution to changes in total valuation (£m)Office (30. 4)Retail 5. 5 Industrial (5. 0)Residential 16. 3 Other 5.
0 portfolio ERVs 9.
/() Lease portfolio 2%over)rented (%)1 3. 7% like-for-
For example, the ERV growth segment by industry (%)1.
Based on the total ERVs debt of 1,691 in December 31, 2016.
3 m secured debt 43% unsecured debt 57% unsecured debt now accounts for 57% of total debt and 92% is fixed and hedge debt with an attractive Weighted average debt cost of 3%.
Debt mixed unsecured debt.
5 m period to maturity: 7.
Total fixed cost for 1 year: 3.
5% fixed debt: 100% secured debt.
Expiration period 8 m: 4.
Total fixed cost for 6 years: 2.
4% fixed debt: 80% S trateg ic for rt governance finance more information Kennedy Wilson European real estate company annual report and account 2016 111 SW1 Buckingham Palace Road, London, November 2014, britain received 224,120 square feet of office details of the sky Hall lampshade at 111 Buckingham Palace Road 1.
Bottom-up investment strategy we received 111 of business process reengineering in November 2014, attracting material recovery potential that can be clearly released in the next three years, within this time frame, the whole rent is rolling in a staggered lease event.
The core location of Victoria, right on the main line of Victoria railway station, in front of Buckingham Palace Road, is very attractive with the wider regeneration of the local area. 2.
Active asset and portfolio management, with an average of £ 47 lower through rent.
00 psf, most of the rent is used for rent review and the remaining 11% is due, which provides a huge opportunity to drive up the rent.
This strategy is supported by our asset repositioning program. 3.
The assets were relocated to the full redevelopment of the reception desk, including generous art installations and the renovation of the sky Hall completed in November 2016.
The newly remodeled reception now competes with any new building on the market, greatly improving the arrival experience for all the people who work and visit the building.
The average rent is £ 47.
00 rent rolling due rent review 70% unlock value 2.
Portfolio Management 1.
Bottom-up investment strategy 3.
Asset repositioning 4.
Strict capital management Kennedy Wilson European real estate annual financial report Plc 2016 month Air lobby cafe Polish plaster upper escalator by \'Halo light\' brass detail main reception month Kennedy Wilson European real estate plc Annual Report and account 2016 meet artists known mainly for the suspension of sculpture, claire Morgan\'s works have been exhibited in museums and galleries around the world, including Europe, the United States and Asia.
Her work reflects her interest in natural processes and hanging materials, and explores the basic conditions of human beings in natural habitats.
The background art of the art installation is the central part of the reception, full of space.
The design shows the organic movement received by the escalator while maintaining the geometry of the escalator.
Meet with architect Eric Parry, owner and founder of Eric Parry Architects, who is a leader in his field and a member of the Royal Academy.
He has won more than 30 awards in his practice, and Parry himself has received an honorary doctorate from the University of Bath.
Parry is the former president of the building association and his work is often reinforced by the works of accomplished artists.
The refurbished background new design doubles the building area of the reception and passes through 6 m-
High listed arch and 15 mhigh skylight.
The reconfigure also created a calm transition space for escalators --
The newly created sky lobby features a coffee shop/café, a relaxing space and a flexible work area.
S. trateg ic on behalf of rt. G. overnance Holdings als a. dditional Chair on behalf of the board of directors, I am pleased to present our full information
Annual performance of 2016.
The investment management team has achieved significant operational wins across the portfolio, providing the best rental results to date;
Remarkable achievements have been made during the year of political and capital market turmoil.
In this case, the group achieved solid financial performance, growing revenue and annual dividend targets.
At the same time, the team improved the portfolio of unsecured debt and extended debt duration while keeping our average debt cost low.
The portfolio is 2,882.
2 million, driven mainly by 295.
Acquisition and capital expenditure activities of 9 million and £.
Due to the sharp appreciation of the euro against the pound, foreign exchange rose by 1 million.
This was offset by very profitable disposal activities and a decline in the modest portfolio valuation of £ 8.
6 million or only-0. 3%.
The team also delivered a large number of development projects at Baggot Plaza and block K in Dublin 4, achieving actual completion on time and budget, which was allowed to enter the Bank of Ireland for 25 years, dublin Central Park 18, adjacent to our existing Vantage program, has created 166 new PRS units.
It is worth noting that in the three months ended December 2016, we have made 72% units.
In addition, major renovations at 111 Buckingham Palace Road, Victoria, London SW1 and Portmarnock Hotel Co have been completed.
Dublin has transformed the two properties and is expected to push revenue to the bottom.
The business benefited from the annual active balance sheet management, raising £ 33 using KWE\'s two unsecured bonds.
The 6 million profit used 2025 euros of bonds from 0. 15 billion € 2022 and 0. 2 billion bonds, adding an outstanding € 0. 55 billion £ 0. 5 billion.
Together they extended our debt to six.
1 year and locked in additional fixed rate debt.
\"KWE reported solid financial performance, strong revenue growth and achievement of the annual dividend target 48.
0 p per share
In the year of major political and capital market turmoil, we have implemented a value-added stock repurchase program and constantly assess the best use of capital to ensure effective balance sheet management.
The board warned that the possibility of increased volatility is still high.
In this case, the business laid a solid foundation for providing attractive investor returns.
\"President Charlotte Valero, Kennedy Wilson European real estate, annual report, accounts for 2016, along with other listed real estate industries in the UK, although significant progress has been made in all parts of the business, but we see a substantial disconnect between KWE\'s share price and the underlying business.
As part of our ongoing commitment to balance sheet management, we have implemented a £ 100 million stock repurchase program that promotes both earnings per share and net asset value.
We continue to monitor how we can deliver the best sustainable total return to our shareholders and have distributed £ 16.
In 2016, the combination of dividends and stock repurchase reached 4 million.
As a result, the adjusted net asset value of the group\'s delivery per share was 1,215. 9 pence, up 3.
An increase of 5% per cent over December 2015.
Adjusted earnings per share are 55.
2 p per share (£74.
Total 1 million)
The basic earnings per share are 49.
1 p per share (£66.
Total 0 million).
To view the financial review, go to pages 50 to 54.
0 p per share, or 64.
EUR 4 million was paid during the year, reflecting dividend payments based on adjusted earnings 1 in 2016.
Double, an increase of 37% on the 35 th.
Pay 0 p per share on 2015.
The board announced a quarterly interim dividend of 12.
0 p per share
Quarterly dividends will be paid to shareholders in the register on March 31, 2017 at the end of business on March 10, 2017.
In terms of the significant disposition delivered so far, the board is satisfied with the sustainability of the dividend level and provides attractive dividend yields to shareholders of c. 5%.
The board will continue to assess the appropriate dividend payments
Launched every quarter.
In March 2016, KWE\'s stock became a member of the ftse epra/NAREIT Global Real Estate Index series and the GPR 250 Index Series.
In addition to the FTSE 250 index, these are important professional indexes for our investors, and KWE has been a member of the index since 2014.
The company is charged-
Paid members of EPRA, a European listed real estate securities trading institution, and follow EPRA\'s best practice advice on both businesses (EPRA BPRs)
And sustainability (EPRA sBPRs)
Disclosure of the report.
In 2015, we won the EPRA silver and bronze medals for operations and sustainability report disclosures, respectively, and aim to further improve this.
For more details on responsible investment, please visit pages 27 to 33.
Looking forward to the openness and activity of the investment and consumer markets in our business, our record shows that --
Break rental and disposal activities, either before the previous valuation or before the attractive return is provided.
We expect the uncertainty of the market to continue and the volatility of the market to increase. As it is too early to determine the impact of Brexit negotiations and the impact on the UK and the rest of Europe.
The board is alert to the potential risks and opportunities of the KWE business. With £539.
Since 2015, the natural evolution of 7 million of disposable products from smaller batches has shown that our wholesale to retail strategy is working.
It not only improves the quality of the portfolio, but also provides a solid occupancy rate, longer leases and attractive profits.
KWE benefits from a diverse portfolio of geography and industry, low capital commitments and ample liquidity to take full advantage of potential opportunities.
This is combined with KWE\'s unique debt and equity skills, strong market relationships and a wealth of experience working in market turmoil, laying a solid foundation for the business.
Charlotte Valero chairman Strateg ic represents unique expertise in managing financial company Kennedy Wilson European real estate company annual report and account 2016 9 asset strategies-successful capital recovery
Long term value investors, we have a strong platform to ensure that we can take advantage of different market conditions.
In the future, continued political turmoil may prolong the uncertainty of the market.
We will maintain discipline in the deployment of capital, always allocate funds to the best use, and 2017 of the funds will continue to balance the disposal of proceeds and selective capital deployment.
Our total capital use and disposal amounted to £ 80 in 2016. 2 million.
Our aggressive capital deployment strategy between sales, procurement, capital expenditure and stock repurchase requires us to respond quickly to market conditions.
This is one of our key attributes for achieving our success.
Core disposal plan.
Total Capital Management: £ 804.
2 m investment proposition \"Our success in achieving substantial revenue growth is a strong recognition of our active asset management plans, as they are achieved in our portfolio, and the sales revenue from our successful disposal plan.
Kennedy Wilson Marie Ricks non-executive director, president and CEO of KWE
KWE President and CEO Executive Director Kennedy Wilson European real estate company Annual Report and Accounts 2016 10 create value through Asset Management-growing revenue our goal is to add value in acquisitions, through asset management and asset repositioning, this means that we do not rely on the growth of market rents to get a return.
We completed 140 commercial leasing transactions in 2016.
4% in advance of the rent passed before and 3.
1% ahead of the appraiser ERV
Such as ERV growth of 3. 7% and like-for-
Growth like NOI 3. 4%.
Once we have realized asset management, our
The core plan allows us to identify the value gains.
Over the past year, we have sold 89 assets for 413.
Premium 1 million to book value 4.
8% and cost return 31. 8%.
Total return on disposal costs 31.
8% financial flexibility to implement our strategy our goal is an effective combination of equity and debt to support our returns without taking excessive risks.
Over the past year, we have raised 1 by issuing bonds of 2025 euros and 2022 pounds, demonstrating our commitment to the unsecured debt strategy.
6 million, and further lock in fixed-rate debt.
Our unsecured debt now accounts for 57% of total debt.
Our maturity period is comfortable.
In one year, we have a financing capacity of 68.
5 million. provide us with sufficient liquidity to respond to potential market opportunities that may arise in 2017.
Total liquidity: 68.
5 m brings strong returns to shareholders-diversified cash flow support dividends. Our total return model returns investors through a secure revenue base prepared for future growth.
At 2016 we deliver at our 48.
0 p per share dividend target, up 37.
1% + 2015\'s 35.
0 p per share
2016 dividend contribution 4. 1% to our 7.
The total accounting return for the year was 6%.
In addition, we made a stock repurchase of £ 100 million and returned a total of £ 16.
4 million to shareholders.
Share buybacks increased net asset value per share and earnings per share, increasing net asset value per share by 1 in 2016.
2%, we expect annual earnings per share to grow to 7. 8%.
On 2016, the capital was returned to shareholders.
KW, a 4 m incentive shareholder, has 23.
This is its largest single investment, accounting for 6% of KWE.
With 50% of the investment manager fees paid in the form of shares, KW is strongly motivated to provide long-term value for the benefit of all shareholders.
Pay the investment manager fee of 50 shares.
0% implementation of the four regions of the ic rep o rt G overnance financial unit A dditional information Kennedy Wilson European real estate annual financial report Plc 2016 market overview in the strategy, we put all of our efforts into positive economic growth and provide strong support for potential professional markets.
The United Kingdom\'s gross domestic product has maintained steady growth.
8% face significant political uncertainty about future exit negotiations.
In this context, the potential career and investment market is still resilient.
Although the whole of the two
The number of investments decreased compared to the peak level of 2015, compared with 10-year averages.
Ireland and Spain are leading the way with three GDP growth. 4% and 3.
Ireland\'s professional market performance in various industries is strong, Spanish real estate fundamentals are also on the rise.
\"In 2016, as our euro assets cushion valuation volatility in the UK, the geographic diversity of the portfolio was very beneficial.
We operate a more resilient and active career and investment market than market commentators expect.
\"Peter Collins chief operating officer, Annual Report of Kennedy Wilson European real estate, accounted for 2016 of uk gdp in the fourth quarter16 was up 0.
7% a little ahead of the first two quarters, according to the National Bureau of Statistics, led to 1.
The total GDP growth of 8% was 2016, down slightly from 2. 2% in 2015.
As demand for tenants remains strong, rental value in the job market remains stable in the second half of this year.
According to the report, the rent value of commercial real estate in Britain has increased by 1.
7% 2016 as a whole.
In our own portfolio, we see the health level of the occupier\'s needs, allowing us to complete the lease in favorable conditions, exceeding our 2016 rental target and generating it in the hands of a lawyer
Despite initial uncertainty after the EU referendum, the job market in central London continues. Take-
Up is still 10-
According to the data of Shibang Wei Lishi, the annual average is 18% lower than the 2015 figure.
As sterling weakened, attracting new foreign investors into the market and driving demand, especially for major stable assets, investment demand remained strong.
In the Victoria Market
The maximum rent is 445,000 square feet, above the five-year average, and the gold rent is 82.
According to Kushman and Wakefield, 50 PSFs.
After the completion of other new construction plans in the area, the benefits of improved comfort continue to enhance the overall tenant experience and the attractiveness of sub-markets.
Southeast office, belt-up fell to 2.
According to shimbang Wei Lishi, 8 million square feet, 11% lower than the 10-year average.
Nevertheless, the lack of several sub-markets has driven the continued growth of rents in the markets we are exposed to, such as medden head, Croydon and Watford.
The industrial sector continues to perform strongly as demand increases
Benefit from a structural shift in online retail.
Industrial properties have the strongest performance across the UK, with a total return of 7.
According to shimbang Wei Lishi, in the past 12 months, 2% is the only industry with rising capital value over the course of the year.
We saw strong demand for commercial Street retail investment and used the strong liquidity of our small batch disposal to achieve sales above valuation across the UK.
In particular, given the continued low yield environment and the recent stamp duty and buying, demand for small batches is driven by demand from high net worth investorsto-
Let changes in taxes weaken the relative appeal of this buyer group to traditional residential investments.
The Aberdeen office market is still challenging and may see signs of improvement in oil prices rising from $30 a barrel 12 months ago to more than $50, a more sustainable level for the industry
The investment market continues to benefit from strong demand for smaller batches and good lots
Make quality assets.
According to CBRE, the number of investments has declined relative to the peak of 2015, but there is still 2016 ahead of the ten-year average.
According to the CBRE index, the capital value of UK real estate has dropped by 2.
4% on 2016, after the Brexit referendum, stamp duty increased by 1% and sentiment weakened.
Lower valuations in the office and retail sector offset positive performance in industrial assets, with a sharp decline in the third quarter
Subsequently, the value of capital rose by 1, close to the recovery at the end of the year. 2% in Q4-16.
Southeast Gold office rent (£ psf p. a. )32. 0 32. 0 24. 5 27. 0 29. 5 30. 5 31. 0 31. 0 38. 5 35. 0 39. 75 40.
Source of 2007: on February 2017, Wei Lishi 2008 CM 2009 cm 2010 cm 2011 cm 2012 cm 2013 cm 2014 cm 20162015 cm 2017 CM 2018 cm financial information on the management of the British strategic report kéné d y W l Søn e uR o p é R é ireland to be taken by the report and account 2016 of the l é s t a t e P l c n nual, the Irish economy continued to win the market and the unemployment rate fell to the army.
According to the Central Bureau of Statistics, 2% people were employed at the end of the year, with more than 2 million jobs for the first time since 2009.
This supports consumer spending as retail sales grow. 4% year-on-
By December 2016.
According to CBRE, this has led to the expansion of retailers and new market entrants, and we expect our shopping malls to benefit from it in due course.
According to data from CBRE, the ADR and RevPAR indicators have increased significantly throughout the hotel market, we hope that the Portmarnock Hotel and the golf course will benefit upon completion of the project-it is a very positive early victory as an award for 2016 Irish golf resorts this year, given the importance of tourism operators in this market.
Real estate investment increased 29% year on yearon-year to €4.
According to CBRE, 5 billion.
It is worth noting that there is almost one
The third improvement is due to the brancarstown and the leffigu shopping centres, which actively support the institutional interests of new entrants to the market. Year-on-
Dublin officeup was 2.
According to CBRE, the 6 million-square-foot vacancy rate is close to 2015, and the vacancy rate in downtown Dublin has dropped to 4. 7%.
The main rent at the end of this year was 62 euros.
50 psf, up 14% year on yearon-
According to the data of Shibang Wei Lishi, this year\'s Gold office yield is 4. 65%.
This is a good sign for our subordinates.
The average rent for the Dublin CBD office was € 40.
The average ERVs and psf are € 47. 50 psf.
The office market in the suburbs of Dublin is almost one
Quarter of all takeaways-
Growth in 2016, nearly three
Quarter of the fourth quarter
According to Shibang Wei Lishi, suburban leasing activities are mainly concentrated in the southern suburbs.
The main rent is now 27 euros.
50 psf, far more than the average rent of our South Dublin Suburban Office is 17 euros. 35 psf.
Our portfolio is still very positive and ERVs is 24 euros. 35 psf.
40/42 Mespil Road Dublin, the 118,000-square-foot Dublin City Centre office acquired in June 2014, is expected to benefit from the potential job placements of companies seeking to readjust their geographic footprint after the EU referendum. A number of UK-
Dublin-based financial services companies have announced that they have either made Dublin a new EU base or are seriously considering it.
The PRS market performed well throughout the year, and we benefited from the sustained growth of both parties (
Including block K)
And the trust.
In December 2016, the Irish government imposed a rent ceiling of 4% for the \"rent pressure zone\" for a period of three years.
This has to do with regions where rents have risen by 7% or more in four of the last six quarters, affecting the Dublin market in the first place.
The Block K unit in Vantage, which we recently developed, and any existing unit that has been heavily refurbished, can be exempted from this rent ceiling.
Rental of senior office buildings in Dublin (£ psf p. a. )63. 0 58. 0 35. 0 32. 0 30. 0 27. 0 35. 0 45. 0 62. 5 55. 0 64. 0 67.
0 2007 Source: CBRE historical data as of February 2017.
Prediction, is expected to as at February 2017 2008 CM 2009 cm 2010 cm 2011 cm 2012 cm 2013 cm 2014 cm 20162015 cm 2017 CM 2018 cm we of stock market K, n, d y W I l s O n e u r Spain economic in continuous 13 a quarter growth after continue its growth trajectory. Spanish economic report and account 2016.
GDP growth of 2016 is expected to be 3.
1%, online simultaneously with 2015\'s 3.
2%. in line with the IMF\'s recent revision of its growth target for the next two years.
Almost a year after no government,
Since November 2016, the government of the people\'s minority political parties has been established.
According to the Bank of Spain, political uncertainty has begun to weaken, and Spain will achieve one of the fastest growing countries in the euro zone this year.
Investment in 2016 increased year by yearon-year by 7. 7% to €13.
According to the data from CBRE, 9 billion, exceeded the peak of 2007 38%.
According to data from CBRE, yields are still at historic lows, as are yields for major CBD offices and major commercial street stores, and are further driven by continued institutional demand. Year-on-
Annual retail sales growth 3.
0% according to the Spanish Institute of Statistics, for 29 consecutive months in Decemberon-year growth.
The continued recovery in employment, low inflation and record numbers of tourists have all contributed positively to this improvement.
Strong retail activity continues to drive our retail business.
We see positive signs that the commercial street retail occupation and investment market in downtown Madrid is accelerating.
In this context, the current rent continues to be significantly lower than the previous cycle, and we expect the rent to increase throughout the industry.
The Spanish retail sales index is 100. 0 94. 1 89. 0 87. 5 82. 6 76. 5 73. 5 74. 2 79. 776.
2007 Source: Spanish Institute of Statistics as of February 2017.
Attention re-in 100 in 2007 2008 2009 2010 2011 2012 2013 2014 20162015 Italy of economic continue to smooth even though the mild is expected to domestic production total growth of month.
8%, increased to 1 in 2016.
0% according to OECD data, by 2018.
Following the publication of the results of the constitutional referendum, Matteo Renzi resigned as prime minister on December 2016 and formed a caretaker government, possibly holding new elections on 2017, at the latest 2018 times.
One of the first bills of the new government is to approve up to € 20 billion in capital to support the troubled banking sector, which will help banks clean up their balance sheets.
In terms of employment, Istat reported an increase of 242,000 jobs in the economy in 2016, while the unemployment rate rose slightly to 12% as the new labor market entered.
Despite political instability, the investment market continues to improve, with a total trading volume of 9 euros.
According to CBRE, it was 1 billion in 2016, an increase of 12% over the previous year.
Although the investment market continues to be dominated by international investors, domestic investors have become more active, bringing additional liquidity to the market.
Investors continue to focus on the office market, especially Milan. CBRE reported that Milan\'s office yield was 3.
75%, 25 basis points less than the previous year.
Annual absorption of 304,000, compared to 10-7%
According to shimbang Wei Lishi, the annual average rent and help the rent of the Gold office increase by 2% per year to 500 euros.
The Roman market has also improved with annual growth.
Up 150,000, up 43% from the previous year, and CBRE also reported that the main rents in the CBD and EUR sub-markets rose by 5. 3% and 3.
The previous year was 1%.
Continued improvement in the professional and investment markets should have a positive impact on our office assets in Rome and Milan, which account for the sum of c.
We have 60% of our Italian portfolio by value.
Milan office rental (£ psf p. a. )39. 0 46. 0 43. 0 43. 0 43. 0 43. 0 40. 0 41. 0 41. 6741.
SOURCE 0 2007: CBRE as at February 20, 2017 08 2009 2010 2011 2012 2013 2014 20162015 strategy report governance financial additional information Annual Report and Accounts 2016 15 we of business mode real estate operators experts local there debt and equity collaborative role good of relationship strong pricing discipline releases value 2.
Portfolio Management 1.
Bottom-up investment strategy 3.
Asset repositioning 4.
Strict capital management Kennedy Wilson European real estate company annual report documenting 2016 16 Financial interests provided by our shareholders, debts provided by our unsecured and secured stakeholders and ongoing operations
Understand the deep understanding of our market by investment managers and their professional approach to due diligence, development, asset and portfolio management.
An investment manager team of equity, debt, property and finance experts.
The extensive relationship between the social/relationship investment manager and financial institutions and other real estate owners, as well as with contractors, planners, councils, consultants and their end occupiers clients, real estate and financial experts.
Through increasing acquisitions and existing portfolios, investors provide safe and growing revenues, supporting dividends, value-enhancing projects, and continuous recycling to clearly dispose of profits.
View 24 pages of resources and relationships.
High quality commercial and residential property to meet their space needs, commercial and personal needs.
Communities working with communities close to our main assets.
See social responsibility on page 29.
KW employees engage in interesting and challenging careers in a growing and successful business.
Suppliers have the potential to grow their business through a long term of mutual benefit
Duration of cooperation.
Key input on how we create value for stakeholders KWE unlock the ever-inadequate real estate value
Management or inadequate
Capitalized by the previous owner.
We use our strong balance sheet to acquire assets, and we acquire assets by building good relationships with suppliers from financial institutions, managers and other non-natural real estate operators.
Then, for the benefit of all our stakeholders, we use our asset management and development skills to unlock the intrinsic value of each asset.
The key components of our business model are described below.
How do we release value our goal we generate sustainable total returns by releasing insufficient intrinsic value
Real estate resources. 1.
Bottom-up investment strategy we adopt a bottom-up approach to underwrite every asset we acquire and believe that value can be found and enhanced under various market conditions. 2.
Active asset and portfolio management our goal is to bring practical solutions to our occupi people to meet their changing space needs while enabling us to increase the amount of revenue and3.
Asset repositioning many of our properties offers the opportunity to relocate, where we can develop and renovate to renovate the property and meaningfully increase the rental and capital value. 4.
Strict capital management we strive to maintain the efficiency of our balance sheet and ensure sufficient flexibility to support our real estate strategy.
Asset management of real estate operators is the core of our value creation.
During the due diligence period, we have a business plan for each asset, so the asset management team can start implementing the action on the first day.
The housing development team also helps generate new thinking about the best way to develop assets.
KWE have permanent capital so we can take a long time
A long-term view of each asset\'s potential.
Assets that are currently at the heart of our portfolio may bring asset management or development opportunities in a few years.
We will also dispose of assets, such as the fact that we have completed the value enhancement program so that we can recycle the proceeds into other opportunities.
Having an expert local presence in each of our markets is critical to taking advantage of local opportunities.
We continue to grow to support our business, and the wider KW team has grown to more than 90 employees, including asset managers, investment experts and finance and operations in the UK, Ireland, spain, Jersey and Luxembourg.
Local expert knowledge and presence ensure our bottom
Approach to investment and asset management and provide us with the infrastructure to execute large portfolio transactions.
Our unique investment strategy provides us with a wide range of opportunities, which means that we can be highly selective about the goals we pursue and can exercise a strong risk-
Return pricing discipline
We apply the expertise and resources of the KW team to conduct detailed due diligence on all products we purchase, whether single assets or large portfolios.
This means that we have a deep understanding of what we are getting and the value we can add, enabling us to determine the right price.
This sets us apart from private equity firms, one of the main competitors in the portfolio we acquire.
Good relationships investment managers and their consultants have good, strong relationships with financial institutions and other potential sales leads
Resource assets such as government agencies, commercial real estate lenders, recipients, REITs and real estate funds.
These relationships provide a key advantage in finding attractive investment opportunities.
A market with limited competition.
Our ability to complete transactions quickly encourages suppliers to trade with us and leads to a repeat of the transaction process.
The investment managers and their consultants hire debt and equity professionals who work seamlessly together.
This is unique among our listed peers and it allows us to invest in direct real estate and loans and carefully assess the quality of debt and underlying property assets before making a purchase decision.
Buying debt at a price below its market value allows us to control the underlying assets.
We can then execute asset management strategies that create more value for shareholders.
The business structure we manage externally has many advantages for us.
In particular, we can obtain the experience and relationship of KW senior management, as well as the expertise of KW\'s extensive team in Europe, and the price we pay is far lower than in-house.
Our business platform also benefits from the enhanced strong systems and processes of investment managers, as well as our strong corporate governance, which ensures that we meet compliance requirements, regulatory and filing requirements for each jurisdiction we operate.
View resources and relationships, 24 pages and leadership, 62 to 66 pages.
S trateg ic rep o rt G overnance financial unit A dditional information Plc 2016 month release value month of Kennedy Wilson European real estate annual financial report.
Portfolio Management 1.
Bottom-up investment strategy 3.
Asset repositioning 4.
Strict capital management penthouse suite, completed 166 rental homes in July 2016 (PRS)
Unlock Value of Block 1 K.
Bottom-up investment strategy Vantage PRS program, including the K block we acquired from NAMA in June 2014, located in Sandyford, 11 km from the center of Dublin city, in the affluent catchment area of southern Dublin
As part of our acquisition, we received the podium in Block K, and our base on the podium was very low, which allowed us to efficiently develop new ones at attractive cost yields2.
Positive asset and portfolio management was actually completed by the end of July 2016.
We started renting new units in October 2016, 120 out of 166 units by the end of the year, and the rent exceeded the business plan. 3.
We took this opportunity to build 166 new residential units and 15,000 square feet of commercial space to complement our existing 276 PRS units in Vantage.
This changed Vantage to become one of Dublin\'s largest PRS plans with 442 units and 34,000 square feet of commercial space.
The charming and comfortable space and service of the Vantage hotel have greatly benefited all tenants. 4.
Strict capital management brought development spending to 44 euros.
9 million funded by existing group cash reserves and projects delivered on time and on budget.
Reflecting the strategy of increasing the unsecured debt portfolio, and following the successful use of our € 2025 bond earlier this year, we paid back our secured debt in September 2016 for a broader scheme of benefits.
The annual occupancy rate of PRS units is 166
End 72% Kennedy Wilson European real estate company Annual Report and Accounts 2016 18 Financial Report of the top suite bedroom for tenant comfort lounge Kennedy Wilson European real estate company annual report and account 2016 19 1.
The definition centered on the total return adjusted net asset value per share plus the total accounting return percentage growth per share dividend divided by the net asset value per share adjusted at the beginning of the period.
The progress made in 2016 has increased our total dividend for the whole year to 48.
0 p per share, up 37% from 2015.
This is covering 1.
Once the adjusted income.
This resulted in a total accounting return of 7.
6%, reflecting a combination of net asset value per share growth, fixed Retained earnings and dividends paid, driven primarily by the value-added stock repurchase program.
For more on total returns, see financial reviews on pages 50 to 54.
Looking ahead, we will seek to achieve a revenue-driven sustainable and attractive dividend return, as an important part of the total return, and we will also add value by successfully completing the asset management plan.
Total accounting return 7. 6% 2.
The effective capital structure defines the weighted average remaining life of all debt instruments for the debt term to maturity date.
We made progress in 2016.
6 million of no guarantee financing is by will 2025 euro bonds again increase 0. 15 billion Europe yuan to 0. 55 billion Europe yuan of benchmark scale will 2022 GBP bonds again increase 0. 2 billion to 0. 5 billion GBP.
By the end of the year, the weighted average maturity period of our debt has increased to 6.
1 year, should be 4 years.
We have not taken any action to extend this period for nine years.
See Financial Review on pages 50 to 54 and notes to loans on pages 125 to 129 25.
We have only £ 45 for future targets and no substantial debt maturity.
In 2018, Gatsby\'s 7 million floating interest rate will naturally decrease with further disposal.
Debt Due 6.
Over the past year, our investment strategy aims to enhance asset management through opportunistic net investment and value, using different real estate cycles in the European real estate market to create value.
Our target markets are the UK, Ireland, Spain and Italy.
Get high-quality real estate assets from sellers who are not core real estate operators.
They usually want to be leveraged by divesting these assets, or have time constraints on long-term possession of themterm.
For investments with one or more of the following features:-prime or quality property just closed
Main location-medium and short range-
Provide long-term asset management opportunities for rental income and capital growth-insufficient properties
Management and deficiencies
Capitalized, where we want to benefit from external factors such as infrastructure improvement, there is an opportunity to add value attributes immediately, government or foreign direct investment and/or related loan collateral suitable for our assets-via-
A loan strategy for direct ownership.
Increase the rental and capital value through an active asset management plan to improve the quality of our income.
It also helps to maintain a close and positive relationship with our occupi people.
Our strategy and objectives Kennedy Wilson European real estate company annual report, accounting for 2016.
Definition of value creation through asset management the incremental NOI of asset management the portfolio of contract revenue and key asset management events of the lease agreement for the next two years.
In 2016, we made further strong progress in the asset management plan, and achieved £ 4.
Of the 0 million commercial leasing transactions, the annualized NOI increment of 140 was 1.
1 square foot, up from the previous rent of £ 11.
4%, ERVs 3 is better than the appraiser. 1%.
We have achieved actual completion in Block K (
72% before December 2016)
And Baggot Plaza, the revenue that will be signed before
Hanoi, with an adult rate of £ 163. 7 million.
For more details on our asset management plans and progress, see performance reviews on Pages 42 to 49.
Our goal in the future is to generate a target increment NOI of £ 14.
5 million as at the end of 2018, selected from selected asset management initiatives.
Incremental NOI for Target Asset Management. 5m 4.
Recovery Capital defines the disposition, acquisition, total capital expenditure of the total capital management portfolio and other financial capital uses (such as stock repurchase or debt repayment.
We have made progress in our 2016 disposal in 2016.
Use 1 million for our capital.
1 million, including the acquisition of pounds.
1 million, capital expenditure pounds.
A 7 million share repurchase. 0 million.
Our disposal includes 89 properties. 6 million square feet.
The plan identifies the yield difference between the cost yield and the existing sales yield, with a premium to book value of 4.
8%, return on delivery costs 31.
The 21-month holding period was 8%.
For more details on our disposal plan, see performance review on page 43.
We have set an additional £ 0. 15 billion target for the future. core disposals.
Total Capital Management: £ 804.
In July 2015, the UKPart Bracknell Waterside Park 2-meter Times building in the Southeast office portfolio acquired a 33,700-square-foot suburban office. \"Last year, we announced another 0. 2 billion
The core disposition will be completed by June 2017 as part of our ongoing asset management completion programme and continue to trim the portfolio.
This part of sales is part of 413rd.
1 million of total sales exceeded 2016, completed ahead of our target date and delivered strong returns ahead of previous book value.
\"Annual Report and Accounts of Mary Ricks President and CEO Kennedy Wilson European real estate 2016 21 we use the following financial and non-financial reports
Track the implementation of our strategy and financial indicators of operational and financial performance.
The UK portion of the hukbatliwood Business Park Southeast office portfolio received a cost-defined suburban office yield of 113,672 square feet in July 2015, that is, the estimated annual NOI on the date of purchase divided by the purchase price using the actual purchaser cost.
Sales exit rate of return defines the estimated annual NOI of the sales date divided by the sales price using the seller\'s cost.
The link to the business model shows our ability to look for assets at attractive entry points.
Business model link: We sold 413 in 2016.
1 million in 89 attributes, when comparing the yield of 7, the yield distribution of one basis point is obtained.
The exit rate of 6% relative to 5. 8%.
Sales generate a total return of £ 0. 104 billion and a cost return of £ 31 is tempting. 8%.
Measure the base point difference between YOC and export yield 5.
The exit rate of the sales kpi in 2016 was 8%, and the group and EPRA measured the annual report of Kennedy Wilson European real estate and the adjusted net asset value of the account 2016 22, the net asset value is made by deducting any management fees and performance fees for the proportion of the shares.
Based on payment reserves.
Adjusted net asset value per share (
As mentioned above)
Divided by the number of shares issued on the relevant reporting day.
The link to the business model shows our ability to add value to our property through asset management, development activities and fulfillment of disposal profits.
Link to business model: adjusted net asset value per share increased by 1,215 in 2016. 9 pence, a 3.
5% growth this year.
This is driven by a £ 100 million stock repurchase program, solid retained earnings, and a fraction of foreign exchange earnings. Measures 1,215.
9 p adjusted NAV 3 per share.
5% adjusted net asset value per share growth adjusted earnings definition EPRA earnings are adjusted by increasing performance expense expenditure.
Definition of adjusted earnings per share (
As mentioned above)
Divided by the weighted average number of shares issued during the relevant period.
The link to the business model shows our ability to generate revenue that covers our dividend spending, which is a key part of our total return to shareholders.
Business model Link: The earnings per share after adjustment in 2016 was 55.
Two Pence this year.
This is the growth of 15.
2% due to the benefits of the acquisition and the level of successful leasing, the previous period;
The disposal activities are partially offset. Measures 55.
Adjusted earnings of 2 p per share 15.
2% adjusted earnings per share growth EPRA vacancy definition ERV for vacancy space divided by ERV for the entire portfolio.
WAULT defines the remaining weighted average lease term in the portfolio weighted by contract rental income, excluding loans, hotels, development and residential properties.
The link to the business model shows the security of cash flow as tenants are willing to take up our property and sign long-term leases.
Connection to the business model: performance portfolio vacancies in 2016 increased slightly from the end of 2015 as we brought about incomplete allowable development completion such as Block K.
Our rental conditions are still favorable as we take our first break at 7.
1 year, with expiration on an attractive 8 th. 9 years. Measures 5.
4% EPRA vacancy 7. 1years WAULT (to first break)Loan to value (LTV)
The ratio of the loan to value is defined as net debt (
Total debt minus cash)
Total portfolio value (
Investment and Development of property value, real estate, hotel guarantee loans).
Weighted average interest rate (WAIR)
Define the interest rate of all withdrawn facilities that the group has withdrawn debt weighting at the end of the period.
The link to the business model shows that our business model has an affordable level of preparation compared to our target range.
Business model link: LTV performance at the end of 2016 was 42.
8% due to the financing activities of the current year, the proportion of unsecured debt has also increased to 57% of the total amount of borrowing. WAIR is 3.
0%, the weighted average maturity period improved during 2016. Measures 42.
The loan value is 8%.
0% wair s trateg ic representative, responsible for finance, traditional information, Annual Report and account 2016 23 resources and relationships of Kennedy Wilson European real estate company our investment managerIt is wholly-
Owned and controlled by Kennedy Wilson.
Kennedy Wilson European investment commission (IC)
Comprised of senior members of the KW team with expertise in real estate and financial markets in Europe and globally.
Integrated circuits provide investment managers with valuable industry insights and access to KW\'s global network of relationships.
It assesses industry trends and strengthens the services of investment managers and their consultants.
This structure allows us to benefit from Kennedy Wilson\'s international expertise, reputation, resources and relationships.
Investment in Europe-
Related services in Ireland, including consulting and transaction procurement.
Kennedy Wilson Investment, UK
Related services in the UK and Italy.
Investment in Spa-
President and CEO of Kennedy Wilson European investment committee William McMorow Kennedy Wilson Mary Rikes President and CEO Kennedy Wilson Europe Fiona d Silva Matt Kennedy Wilson officer Windisch executive vice president peter hewesson, head of Kennedy Wilson Europe, direct real estate UK, Kennedy Wilson, our three investment consultants KW Investment Management Co. , Ltd. will have some of its duties and functions, which is also the Kennedy Wilson Group. company.
The investment consultant is: the investment consultant uses a strict investment process when advising the investment manager.
They identify opportunities that are in line with the KWE investment policy and conduct appropriate due diligence.
The investment manager has full authority in making investment decisions.
Kennedy Wilson European real estate company annual report, with the support of KW team culture KW strong team culture, accounted for 2016 24, ensuring the team\'s extensive complementary skills in fairness, both debt and real estate are committed to providing total shareholder returns to KWE.
This allows the KW team to take advantage of numerous investment opportunities in all aspects of the real estate market.
KW\'s performance record in Europe and its reputation as a reliable counterparty quickly enhanced the purchasing capacity of the investment manager and enabled KWE to make the most of the opportunity in due course.
As the KWE portfolio grows, we benefit from KW\'s expansion of its European management and consulting team.
This has increased from about 50 people at the IPO in February 2014 to more than 90 at the end of the year, with senior local managers representing various parts of the business.
These professionals further strengthen KW\'s local contacts with agents, brokers, joint venture partners, private equity participants and suppliers.
Ipswich Orion Business Park the UK acquired a trateg ic representative of the 203,370-square-foot industrial park in November 2016 for financial management. Kennedy Wilson European real estate company Annual Report and Accounts 2016 25 Kennedy Wilson European real estate company Annual Report and Accounts 2016 newly renovated floor refurbished reception area new reception entrance Theta House, cambury United Kingdom (
Combination of Armys)
In March 2014, 50,700 square feet of suburban office unlock value 2.
Portfolio Management 1.
Bottom-up investment strategy 3.
Asset repositioning 4.
Strict capital management release value of Theta House 1.
As part of the Artemis portfolio, we acquired Theta House in March 2014.
The property is fully occupied by two tenants, but we knew at the time of the acquisition that the main tenants who occupy 66% of the area will vacate when the lease expires on February 2016.
After underwriting this rental activity, we can price the acquisition to reflect the lease risk and develop a plan to execute at the asset management machine that we consider attractive.
Located in the heart of the Black Water Valley office market, Theta House is close to junction 4 of M3. 2.
Active asset and portfolio management we have carried out a comprehensive renovation of vacant areas and public parts, which was completed in October 2016.
We managed to make the entire bottom 14-year lease (with a seven-year break).
We\'re done again.
Equip with Amer Sport before the lease expires on October 2017.
We all got ten.
Extension of annual lease (with a five-year break)
And expand to extra space on the second floor of the renovation.
The total cost of renovation is 1.
9 m stable yield of cost 10.
5% \"The board formally adopted a responsible investment policy in 2016, including sustainability and social responsibility measures.
The sustainability advisory team has made significant progress in measuring the carbon footprint of the KWE foundation year.
\"Our responsible investment strategy covers approaches to sustainable development and social responsibility.
The Council guided the strategic direction of responsible investment and formally adopted the sustainable development policy and social responsibility programme in 2016.
The investment manager is responsible for implementing the board\'s sustainability policy across the business area and with the assistance of the Sustainability Advisory Team (‘SAT’)
In the investment manager group.
SAT is currently composed of the chief operating officer and three members of the asset management team who meet regularly to assist the investment manager in the implementation of sustainability measures and report to the board on a regular basis.
The Sustainability Board recognizes that seeking to minimize the impact of the company on the environment and adopting a sustainable approach in its main activities is an important part of its overall business objectives.
In 2015, we set out the approach to responsible investment and how we manage sustainable development opportunities as part of our day-to-day wor