Beverly Hills-headquartered property investor Kennedy Wilson has formed a partnership with an, as yet unnamed, global institutional investor to create a $700 million debt investment platform that will target real estate in the UK and Europe.
The deal increases Kennedy Wilson’s global debt platform to over $3 billion. The wider platform includes partners across insurance and sovereign wealth and invests across the real estate debt universe in the US, UK and Europe. It currently has $1.3 billion of lending.
The new platform will provide financing “across the capital structure and risk spectrum”, Kennedy Wilson said in a statement. Together with its partners, Kennedy Wilson has completed approximately $7 billion in real estate related debt investments since 2010, including $4.3 billion across Europe.
Fiona D’Silva, head of investment, Europe, at Kennedy Wilson said: “We are in a unique position as a debt provider in that we have an ownership interest in over $18 billion of real estate assets globally. We are therefore able to track industry and financing trends across multiple asset classes in real time within markets where we benefit from meaningful relationships and a strong local presence.”
The new debt platform is not Kennedy Wilson’s first partnership venture aimed at UK and European property. In December 2020 the firm announced that it had established a joint venture with Singapore’s sovereign wealth fund GIC to acquire and manage urban logistics properties in the UK, with the potential to expand into Ireland and Spain. That JV was seeded with a $220 million portfolio comprising 18 Kennedy Wilson-owned logistics assets in the UK. The joint venture hopes to build a $1 billion portfolio of last-mile urban distribution centres.