Kennedy Wilson links up with Fairfax for European investment drive

US investor Kennedy Wilson is partnering with Fairfax Financial to launch a EUR 278 mln European commercial real estate investment platform.

In a statement on Tuesday, the Beverly Hills, California-based group said the partnership will initially focus on UK and Irish commercial real estate and debt. Fairfax will provide a EUR 250 mln capital commitment alongside a 10% co-investment from Kennedy Wilson. This platform follows on from Kennedy Wilson and Fairfax's fully invested $278 mln US real estate investment partnership.

Kennedy Wilson will take the lead in sourcing, negotiating and executing the acquisition of investment opportunities in addition to holding responsibility for due diligence, financing, property management, asset management and disposition. Fairfax will review and approve all opportunities sourced by Kennedy Wilson.

'Kennedy Wilson and its partners have completed $3.7 bn of deals in the UK and Ireland to date,' said William McMorrow, chairman and CEO of Kennedy Wilson. 'We are excited to continue our relationship with Fairfax overseas and to pursue additional opportunities in Europe.'

The company completed the acquisition last year of a UK real estate loan portfolio from Bank of Ireland for $1.8 bn (EUR 1.3 bn), in the largest European real estate loan portfolio acquisition completed in the current cycle.