Kennedy-Wilson & Kennedy Wilson Europe merger creates USD8bn real estate company
Global real estate investment company Kennedy-Wilson Holdings has completed its merger with Kennedy Wilson Europe Real Estate, creating a real estate investment and asset management platform with an USD8 billion enterprise value.
“This transformative combination with KWE represents an exciting new chapter for our company,” says William J McMorrow (pictured), 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.”
“We are thrilled to combine the financial strength of KW and KWE to continue building on our global platform,” says Mary Ricks, President and CEO of Kennedy Wilson Europe. “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, KW has grown from a single office in Santa Monica, CA into a global real estate company with 27 offices in six countries. Since going public in 2009, KW and its partners have completed approximately $20 billion in acquisitions. The new combination will increase KW’s scale, liquidity and geographic reach. KWE’s portfolio, which is expected to produce over $200 million of annual NOI, includes 207 assets across 11.4 million square feet 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.
Following the merger, KW will benefit from an improved balance sheet and greater recurring income. As a result, the company intends to increase its next quarterly dividend by 12% to $0.19 per share, or $0.76 per share annualized.