Kennedy-Wilson Raising $1.3 Billion for European Property

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U.S.-based real estate investment fund Kennedy-Wilson Holdings Inc is planning to raise as much as $1.3 billion through a stock market listing for its European real estate unit, Reuters reports.

Through a listing on the London Stock Exchange, the fund will focus on acquiring property and property loans in Britain, Ireland and Spain. It will then look for other opportunities in Europe and focus on investments that generate a total return of 15 percent, according to a company announcement. 

"The European real estate market is mostly at or past the trough of the cycle and currently offers great investment opportunities to capable investors," said Mary Ricks, president and chief executive of Kennedy Wilson Europe.

Kennedy-Wilson manages $13.7 billion in global property assets. It will raise the cash for its European endeavors by placing shares with institutions and selected key investors, as well as by allowing its affiliates to subscribe.

The fund has already received binding commitments of £685 million of the gross proceeds, including a pledge from key investors and affiliates of £615 million. 

Kennedy-Wilson has already agreed to purchase two property portfolios in Britain, covering 2.6 million square feet, with 40 office, industrial and retail properties for £223 million, Reuters reports.

In November, Kennedy Wilson and fellow U.S. investment firm Varde Partners purchased the property management business from Spain's Banco Popular for $1.1 billion.

Las summer, the fund purchased 16 Irish commercial properties from defunct developer Treasury Holdings for €306 million.