Kennedy Wilson and Tokyu Land US Corporation have created a preferred equity and mezzanine real estate investment platform that plans to invest over $200m (€174m) in US multifamily and industrial projects.
The platform will typically target investments between $10m and $50m, with each deal requiring approval from both Tokyu and Kennedy Wilson.
In addition to holding a 10% stake in the venture, Kennedy Wilson will be responsible for managing the investments and earn customary fees.
Matt Windisch, president of Kennedy Wilson, said: “We are pleased to establish this new platform that will build on the success we’ve experienced in our credit platform and expand our involvement across all parts of the capital stack. It also furthers our corporate goal to grow our investment management business alongside top-tier strategic partners that share our investment values.
“The preferred equity and mezzanine investments platform will benefit from the complementary strengths of the Kennedy Wilson and Tokyu teams as well as the track record, relationships and unique market knowledge our companies bring to the table.”
Ben Cherney, EVP of investments for Tokyu Land US Corporation, said: “This partnership with Kennedy Wilson represents a pivotal step in Tokyu’s accelerated expansion within the US market. Leveraging our proven success in preferred equity, this venture establishes a strategic platform to significantly scale our US presence.
“Our preferred equity programme offers a compelling value proposition for Japanese investors like Tokyu, providing stable returns and cash flow with robust downside protection and attractive low to mid-teen yields. Given their established debt platform and deep roots in Japan, Kennedy Wilson is the ideal partner for us to drive the successful execution of this growth initiative.”
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