Kennedy Wilson and Kennedy Wilson Europe Real Estate Plc Complete Merger, Creating $8 Billion Global Real Estate Company
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--
Global real estate investment company Kennedy-Wilson
Holdings, Inc. (NYSE:KW) (“KW”) today announced the completion of its
merger with Kennedy Wilson Europe Real Estate Plc (LSE:KWE) (“KWE”). The
transaction creates a leading global real estate investment and asset
management platform with an $8 billion enterprise value.
“This transformative combination with KWE represents an exciting new
chapter for our company,” said 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.”
“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 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 U.S. 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.
About Kennedy Wilson
Kennedy Wilson (NYSE:KW) is a global real estate investment company. We
own, operate, and invest in real estate both on our own and through our
investment management platform. We focus on multifamily and commercial
properties located in the Western U.S., UK, Ireland, Spain, Italy and
Japan. To complement our investment business, the Company also provides
real estate services primarily to financial services clients. For
further information on Kennedy Wilson, please visit: www.kennedywilson.com.
Special Note Regarding Forward-Looking Statements
This press release contains “forward-looking” statements concerning
future events and financial performance. These forward-looking
statements are necessarily estimates reflecting the judgment of senior
management based on current estimates, expectations, forecasts and
projections and include comments that express current opinions about
trends and factors that may impact future operating results. Disclosures
that use words such as “believe,” “anticipate,” “estimate,” “intend,”
“could,” “plan,” “expect,” “project” or the negative of these, as well
as similar expressions, are intended to identify forward-looking
statements.
Forward-looking statements are not guarantees of future performance,
rely on a number of assumptions concerning future events, many of which
are outside of the companies’ control, and involve known and unknown
risks and uncertainties that could cause actual results, performance or
achievement, or industry results, to differ materially from any future
results, performance or achievements, expressed or implied by such
forward-looking statements. In evaluating these statements, you should
specifically consider the risks referred to in KW’s filings with the
SEC, including KW’s Form 10-K, which are available on KW’s website and
at www.sec.gov,
including, but not limited to, the following factors: difficulties in
successfully integrating the two companies following completion of the
merger and the risk of not fully realizing expected synergies from the
merger in the time frame expected or at all; increases operating costs,
results in management distraction or difficulties in establishing and
maintaining relationships with third parties or makes employee retention
and incentivization more difficult; disruptions in general economic and
business conditions, particularly in geographies where the companies’
respective businesses may be concentrated; volatility and disruption of
the capital and credit markets, higher interest rates, higher loan
costs, less desirable loan terms and a reduction in the availability of
mortgage loans, all of which could increase costs and could limit the
companies’ ability to acquire additional real estate assets; continued
high levels of, or increases in, unemployment and general slowdowns in
commercial activity; the companies’ leverage and ability to refinance
existing indebtedness or incur additional indebtedness; an increase in
the companies’ debt service obligations; the companies’ ability to
generate a sufficient amount of cash from operations to satisfy working
capital requirements and to service their existing and future
indebtedness; the companies’ ability to achieve improvements in
operating efficiency; foreign currency fluctuations; adverse changes in
the securities markets; the companies’ ability to retain their senior
management and attract and retain qualified and experienced employees;
the companies’ ability to retain major clients and renew related
contracts; trends in use of large, full-service commercial real estate
providers; changes in tax laws in the United States, Europe or Japan or
other jurisdictions that reduce or eliminate deductions or other tax
benefits the companies receive; the possibility that future acquisitions
may not be available at favorable prices or upon advantageous terms and
conditions; the companies’ ability to dispose of assets; and costs
relating to the acquisition of assets the companies may acquire could be
higher than anticipated. Except as required by law, KW does not intend
to update publicly any forward-looking statements, whether as a result
of new information, future events, changes in assumptions or otherwise.
KW-IR

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Kennedy Wilson
Investors
Daven Bhavsar, CFA
Director
of Investor Relations
+1 (310) 887-3431
[email protected]
or
Media
Emily
Heidt
Director of Public Relations
+1 (310) 887-3499
[email protected]
Source: Kennedy Wilson