US property investor Kennedy Wilson (KW) has completed its earlier-announced merger with its London-listed subsidiary Kennedy Wilson Europe Real Estate (KWE), creating an investment and asset management platform worth $8 bn (€6.8 bn).
'This transformative combination with KWE represents an exciting new chapter for our company,' commented William J. McMorrow, chairman and CEO of KW.
'We are moving towards a simplified corporate structure that provides more recurring income from stable property cash flows and greater upside potential from value-enhancing initiatives worldwide. We are well positioned for future growth and to continue our track record of generating attractive risk-adjusted returns on our invested capital,' he added.
KWE has built up a sizeable real estate portfolio in Dublin and the UK in recent years. The London-listed firm carried out €435 mln of transactions in Europe in 2016, according to PropertyEU research. A significant deal in May last year saw the company acquire office buildings in Dublin and a Manchester business park for a total of €181 mln.
'We are thrilled to combine the financial strength of KW and KWE to continue building on our global platform,' said Mary Ricks, president and CEO of KWE. 'We remain focused on efficiently allocating capital to support growth opportunities across our target markets and we look forward to enhancing the value of our combined portfolio.'
Acquired by William J. McMorrow in 1988, California-based KW now has 27 offices in six countries. Since going public in 2009, KW and its partners have completed approximately $20 bn (€17 bn) in acquisitions.
KWE’s portfolio includes 207 assets across 11.4 million ft2 with a weighted average unexpired lease term of 7.4 years.
KW’s leadership team has acted as the external asset manager for KWE since its IPO on the London Stock Exchange in 2014. The senior management team and all operations in the US and Europe remain in place.
