The Small Space Marketplace

List Your Space

Find Space

Home About Us Executive Subscriber Membership RENTV Conferences Newsletter Contact Us Advertise
November 29, 2022
 Search RENTV
   Go!
 The REview
 News
News Home Page
Southern California
Northern California
Pacific Northwest
Texas/Southwest
Retail
Multifamily
Financing
Prop. Management
Archives
Press Releases
 R. E. Marketplace
Service Providers
JobWorks
Property Spotlight
 RENTV  Conferences
Subscriber Login:
  
Email      
    Go!
Password      
Forgot Password?



ETC... ETC...
Printer-friendly Version   Email an Associate
Fairfax Financial Holdings Limited Invests $300 Mil in Kennedy Wilson

2/28/22

Fairfax Financial Holdings Limited, through its affiliates, will make a $300 mil strategic preferred equity investment in global real estate investment company Kennedy Wilson. Kennedy Wilson expects to use the proceeds to fund its development pipeline and real estate investments, as well as pay off its unsecured bank borrowings in full.

Along with the equity investment, Fairfax has increased its first mortgage target within Kennedy Wilsonís debt investment platform by $3 bil to $5 bil. Kennedy Wilson expects to have an approximate 5% interest in future debt investments within the platform while earning customary fees in its role as asset manager. In addition to the $2 bil already invested across Kennedy Wilsonís global debt platform, there is now approximately $4 bil in additional investment capacity with a strong pipeline of future opportunities.

According to William McMorrow, Chairman and CEO at Kennedy Wilson, this new permanent capital will provide the firm flexibility as they grow their income-producing portfolio and complete their development projects.

Under the terms of the agreement, Fairfax is purchasing $300 mil in perpetual preferred stock that carries a 4.75% annual dividend rate and is callable by Kennedy Wilson at any time. Additionally, Fairfax acquired seven-year warrants for approximately 13 mil common shares with an initial strike price of $23.00 per share, based on Kennedy Wilsonís closing price on February 9, 2022, and representing a premium of 2% to the daily volume weighted average price per share of Kennedy Wilsonís common stock over the past 20 trading days.

Kennedy Wilson and Fairfax began their relationship in 2010 when Fairfax made a $100 mil equity investment in Kennedy Wilson. Over the past decade, the companies have partnered on $8 bil in aggregate acquisitions, including approximately $5 bil of real estate related debt investments. Fairfax currently has an equity ownership interest in Kennedy Wilson of approximately 9%.

J.P. Morgan acted as exclusive placement agent and Latham & Watkins LLP acted as legal advisor to Kennedy Wilson. Shearman & Sterling LLP acted as legal advisor to Fairfax.








Return to the Archive page


 


 


 
 
 



Home | About Us | Newsletter | Contact Us | Executive Subscriber Membership | Executive Subscriber Home | Advertise
Southern California | Northern California | Pacific Northwest | Southwest | Retail | Multifamily | Financing | Property Management
Archives | Press Releases | Service Providers | JobWorks | Property Listings

Copyright © 2022 by RENTV, All Rights Reserved
Website designed by Regency Web Services, Inc. and powered by Lightning Media