Total platform capital commitments are $11 billion, with $4 billion of remaining capacity
BEVERLY HILLS, Calif., March 4, 2024 –(BUSINESS WIRE)–Global real estate investment firm Kennedy Wilson (NYSE: KW) announced that its real estate debt investment platform has more than doubled in size over the past year, reaching $7 billion in disbursements with a strong pipeline of new investment opportunities.
This milestone follows Kennedy Wilson's acquisition of a $4.1 billion loan portfolio from a regional bank in June 2023 and subsequent integration of the bank's lending team, which strengthened its real estate lending capabilities and expanded Kennedy Wilson's presence in key markets across the United States. Since acquiring the portfolio, the lending team has closed approximately $500 million in new loans and is currently expected to close $1.3 billion through the second quarter of 2024. The firm is primarily focused on multifamily and student housing construction lending opportunities with high-quality sponsors seeking loan amounts between $40 million and $200 million.
Kennedy Wilson's debt platform, first launched in 2020 and expanded in Europe in 2021, benefits from a unique unleveraged structure. The lending team is rooted in Kennedy Wilson's historical strength in real estate asset management and provides a hands-on approach to each loan. In 2024, Kennedy Wilson plans to roll out a best-in-class debt servicing platform that will further expand its capabilities.
“Our debt platform has become our fastest growing business unit and is contributing to record levels of fee capital for Kennedy Wilson. The platform provides us with a strong revenue stream and real-time market intelligence to uncover opportunities across the real estate capital stack that inevitably arise from the current market dislocation,” said Matt Windisch, president of Kennedy Wilson. “We are also strengthened by the talented lending team that joined us this summer. As traditional lenders continue to retreat, we are poised to grow this business with quality sponsors and continue our strong loan pipeline that will deliver attractive returns for Kennedy Wilson in 2024.”
In December 2023, Fairfax Financial Holdings Limited (“Fairfax”) increased its first mortgage capital commitments within its Kennedy Wilson debt investment platform by $2 billion, bringing total capital commitments across the platform's various partners to $11 billion and dry powder to $4 billion. Kennedy Wilson is investing with strategic partners who have an average 5% ownership interest across the debt portfolio and an average 2.5% ownership interest in future loans. In its role as asset manager, the firm also earns customary management fees.
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About Kennedy Wilson
Kennedy Wilson (NYSE:KW) is a leading global real estate investment firm. The firm owns, operates and invests in real estate through its balance sheet and investment management platforms in the United States, the United Kingdom and Ireland. In its investment management business, Kennedy Wilson focuses primarily on multifamily and office properties, as well as industrial and debt investments. For more information about Kennedy Wilson, please visit www.kennedywilson.com.
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Caution Regarding Forward-Looking Statements
Statements in this press release that are not historical facts are “forward-looking statements” within the meaning of U.S. federal securities laws. These forward-looking statements are estimates that reflect the current expectations of our management and are based on our current estimates, expectations, projections, forecasts and assumptions that may prove to be inaccurate and involve known and unknown risks. Accordingly, our actual results, performance or achievements, or industry results, may differ materially and adversely from the results, performance or achievements, or industry results expressed or implied by these forward-looking statements for reasons that are beyond our control. For example, there can be no assurance that we will complete any or all of the originations currently expected to be completed in the second quarter of 2024 described above. Some forward-looking statements may be identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “plans,” “intends,” “projects,” “suggests,” “may,” “might” and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Except as required by law, we undertake no obligation to update any forward-looking statements.
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contact address
Investor
Daven Bhavsar, CFA
Vice President, Investor Relations
+1 (310) 887-3431
dbhavsar@kennedywilson.com
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Emily Height
Vice President of Communications
+1 (310) 887-3499
Email: eheidt@kennedywilson.com