Since September 30, 2015, the Company and its partners have sold six
multifamily properties for $479 million in gross proceeds
Global real estate investment and services firm Kennedy
Wilson (NYSE: KW) today announced that the Company and
its equity partners completed the sale of a 159-unit multifamily
property in the greater San Francisco Bay Area for $55 million. The
apartment community was acquired by Kennedy Wilson and its partners in
2013 after which Kennedy Wilson implemented a value-add asset management
program and grew the NOI by approximately 20% prior to sale.
“Kennedy Wilson was able to create substantial value in this property
through the implementation of an institutional asset management
program,” said Kurt Zech, president of Kennedy Wilson Multifamily
Investments. “This was an opportune time to selectively dispose of a
handful of investments in which the Company had smaller ownership
interests. With that said, we continue to focus on growing the income in
our core portfolio and strategically adding units to our overall
multifamily platform.”
Since September 30, 2015, the Company and its partners have sold six
multifamily properties totaling 1,997 units located in the Western U.S.
for gross sales proceeds of $479 million. The Company had a 22% weighted
average ownership in these joint venture investments and the sales were
completed at an average cap-rate of 4.9%. The net proceeds (including
promoted interests) to Kennedy Wilson were $57 million, which equates to
an approximate $35 million cash profit on these investments. Kennedy
Wilson’s global multifamily portfolio has grown by approximately 3,500
units in the past 12 months and now stands at over 24,000 units. Kennedy
Wilson has an approximate 48% weighted average ownership interest in
this portfolio.
For the full year of 2015, the Company and its equity partners
(including KWE) completed over $3 billion of acquisitions and over $2
billion of dispositions.
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.
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, 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. Furthermore, the capitalization rate of our
investments represents the net operating income of an investment for the
year preceding its acquisition or disposition divided by the purchase or
sale price. Capitalization rates represent historical performance and
are not a guarantee of future net operating income. 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.
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