BEVERLY HILLS, CA – Global real estate investment company Kennedy Wilson (NYSE: KW) has entered into a new joint venture with a global institutional investor to acquire and manage core-plus multi-family communities in the western United States.
The platform was built with a $ 800 million portfolio, including nine apartment buildings in the western United States that were previously wholly owned by Kennedy Wilson. As part of the transaction, Kennedy Wilson sold 49% of these wholly owned assets to his partner. Kennedy Wilson will continue to have a 51% interest in the new joint venture, which will target approximately $ 700 million in additional Core Plus acquisition opportunities.
The creation of the new platform and the sale of the ownership interest in the multi-family facilities brought Kennedy Wilson approximately $ 254 million in proceeds, including $ 92 million from pre-sale refinancing of certain assets within the seed portfolio. The majority of these proceeds will be reinvested in new, wholly owned acquisitions.
"We are honored to partner with a renowned global investor to expand our multi-family presence in target markets that offer residents relative affordability and a high quality of life," said William McMorrow, Chairman and CEO of Kennedy Wilson. "We have a long track record of identifying multi-family investment opportunities in the western US and are grateful to have a strategic partner that will enable us to grow our multi-family business."
The launch of the platform, along with recently announced acquisitions, has contributed to a dramatic spike in recent transactional activity at Kennedy Wilson, as well as an expansion of its multi-family portfolio, which has grown from 30,000 units at the end of 2020 to approximately 32,000 units expected by June 30, 2021 currently expects further growth in the number of its apartment buildings as the company reallocates the proceeds from the sale of the seed portfolio.
Source: Kennedy Wilson