Company invests $78 million to acquire equity stake in off-market
transaction
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Jun. 2, 2015--
Global real estate investment and services firm Kennedy Wilson (NYSE:
KW) today announced that the company completed the acquisition of a
majority interest in Vintage Housing Holdings (“VHH”). VHH owns certain
interests in 30 multifamily properties totaling 5,485 units in the
Western U.S. For its 61% equity ownership in VHH, Kennedy Wilson
invested approximately $78 million, valuing the underlying portfolio at
approximately $486 million (including the assumption of property debt,
third party equity interests and unrestricted cash). The property
developer and current manager of VHH will own the remaining 39% of the
equity interests and maintain its role as manager.
“Kennedy Wilson was able to acquire this large portfolio off-market
through a direct relationship with the seller,” said Matt Windisch,
executive vice president of Kennedy Wilson. “We have high hopes for
growing this portfolio over time leveraging both our 20 years of
multifamily experience and the expertise of the existing manager.”
The properties, which were built on average in 2006, are located
primarily in Washington (3,796 units), California (756 units) and Nevada
(544 units). As of April 30, 2015, the portfolio has produced
year-to-date net operating income of approximately $12 million.
“The VHH acquisition is an excellent complement to our existing
market-rate multifamily portfolio and allows Kennedy Wilson to further
expand its footprint in key West Coast markets,” said Kurt Zech,
President of Kennedy Wilson Multifamily. “The portfolio benefits from
its ability to serve a much needed market segment with the majority of
the units rented to independent seniors.”
The Company’s multifamily portfolio now exceeds 25,000 units, including
over 9,000 units in the State of Washington.
About Kennedy Wilson
Founded in 1977, Kennedy Wilson is a vertically integrated global real
estate investment and services company headquartered in Beverly Hills,
CA, with 25 offices in the U.S., U.K., Ireland, Spain, Jersey and Japan.
The company, on its own or with partners, invests opportunistically in a
variety of real estate related investments, including commercial,
multifamily, loan purchases and originations, residential, and hotels.
Kennedy Wilson offers a comprehensive array of real estate services
including investment management, property services, auction,
conventional sales, brokerage and research. For further information on
Kennedy Wilson, please visit www.kennedywilson.com.
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Source: Kennedy Wilson
Kennedy Wilson
Christina Cha
Vice President of Corporate
Communication
(310) 887-6294
[email protected]
www.kennedywilson.com