Kennedy Wilson Completes $304M of Asset Sales in the United States and Ireland
Proceeds from sale of SF Bay Area apartments and Dublin, Ireland
office will be used to acquire 996 units across four multifamily
properties in the Pacific Northwest and to repay unsecured debt
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--
Global real estate investment company Kennedy Wilson (NYSE:KW) (“KW”)
announced today two real estate asset sales generating $304M in gross
proceeds for the company. Summer House, a wholly owned 615-unit
apartment community in Alameda, CA, sold for $231M, representing the
largest multifamily transaction in the San Francisco Bay Area in 2017
and one of the largest single asset real estate transactions recorded in
the East Bay. Additionally, the company completed the sale of Gardner
House, a 75,600 square-foot office building in Dublin, Ireland, for $73M.
The two sales together are expected to generate a profit to KW of
approximately $130M in Q4.
KW will reinvest the proceeds from Summer House and Gardner House into
four separate multifamily assets with a total of 996 units in the
Pacific Northwest through 1031 exchanges and will also pay down
unsecured debt under KW’s revolving credit facility. The newly acquired
multifamily properties, which are on average 40 years newer than Summer
House, include Latitude, a 210-unit apartment community built in 2008 in
Happy Valley, Oregon, and Heatherwood, a 264-unit apartment community in
Gresham, Oregon. The remaining two multifamily acquisitions include 522
units in the greater Seattle and Portland markets, and are expected to
close before the end of 2017.
“These sales represent a significant step towards our capital recycling
goals and ongoing efforts to upgrade the quality of our assets while
creating more liquidity across KW’s portfolio,” said William J.
McMorrow, chairman and CEO of KW. “A key part of that strategy lies in
our value-add capital and management initiatives. At Summer House, we
increased NOI by 109% over seven years while the Bay Area was
establishing itself as one of the highest growth job and real estate
markets in the country. We are excited to now tap into that value and
secure new opportunities in the Pacific Northwest, a region we believe
still has a long runway for future growth.”
The disposition of Summer House is the second significant apartment sale
for KW’s multifamily group over the past several months. In July 2017,
the company sold Rock Creek Landing in Kent, Washington for $109M and
used the proceeds to fund the acquisition of 90 East, a 573,000
square-foot office campus in Issaquah, Washington. Within four months of
taking ownership of 90 East, the Kennedy Wilson team negotiated a lease
extension on 177,000 square feet with Costco. The lease was extended an
additional seven years beyond the existing term, securing long-term
stability for this well-located office asset.
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
Statements in this press release that are not historical facts are
“forward-looking statements” within the meaning of U.S. federal
securities laws. These forward-looking statements are estimates that
reflect our management’s current expectations, are based on assumptions
that may prove to be inaccurate and involve known and unknown risks.
Accordingly, our actual results or performance may differ materially and
adversely from the results or performance expressed or implied by these
forward-looking statements, including for reasons that are beyond our
control. For example, the sales noted above may not generate profits in
the amounts we currently expect. Also, our intended acquisitions may not
be completed on favorable terms, if at all. In addition, we may not be
able to maintain our current acquisition or disposition pace or identify
future properties to acquire on terms we consider attractive, and our
current property portfolio may not perform as expected. Accordingly, you
should not unduly rely on these statements, which speak only as of the
date of this press release. We assume no duty to update the
forward-looking statements, except as may be required by law.
KW-IR

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