After the merging of Kennedy Wilson Holdings Inc. and Kennedy Wilson Europe to create an $8 billion global real estate investment, Kennedy Wilson has signed WeWork and ASOS in one of the largest European deals in the company’s history.
Kennedy Wilson’s Chairman & CEO, William McMorrow, told Commercial Property Executive that the company preferred the office business in Europe because leases tend to average at around 10 to 25 years, as opposed to the United States where leases are looking at five to 10 years.
WeWork is already the largest corporate office occupier in London and is continuing its growth rapidly. Recently, WeWork announced plans of leasing an eight-story building at Friar’s Bridge Court and will take over in 2021 after it is refurbished.
“London’s Southbank is an important location for us in terms of community; adding Friars Bridge Court to our portfolio proves our commitment and dedication to this area and this city as a whole,” Patrick Nelson, head of WeWork EMEA + Australia, Real Estate, said in a prepared statement.
ASOS, a leader in online fashion retail, has also committed to a 15-year lease in a 125,000 square foot space at Leavesden Park in the Watford submarket. It is UK’s South East’s largest leasing deal since 2016. The company also currently occupies 75,000 square feet of space on Hercules Way.
“After a successful transaction to bring ASOS to Watford in 2017, we are delighted to have been able to secure its long-term commitment to expand at Leavesden Park. This is a landmark deal for the South East office market and a powerful commitment from a fast-growing business to create additional jobs in the U.K.,” said Mike Pegler, head of asset management of Kennedy Wilson Europe.