Global real estate investment company Kennedy Wilson has formed a $2 billion platform with Fairfax Financial Holdings Limited that will pursue first mortgage loans secured by high-quality real estate in the Western United States, Ireland and the United Kingdom. In its role as asset manager, Kennedy Wilson expects to coinvest alongside Fairfax with an average ownership of 20% in the investments, which will be made without leverage, and will earn customary management and performance fees.
“The launch of this new debt platform builds on the momentum of Kennedy Wilson’s expanding investment management business and leverages our successful track record of investing in debt opportunities in our key markets,” said William McMorrow, chairman and CEO at Beverly Hills, California-based Kennedy Wilson. “We have enjoyed an outstanding relationship with Prem Watsa and his team at Fairfax over the past decade. We are pleased to continue building on our long-term partnership as we invest together in this changing market environment.”
“Given our successful history of investing with Kennedy Wilson since the Great Recession, we are excited to have their team source new first mortgage opportunities in the months ahead,” said Prem Watsa, Chairman and CEO of Fairfax. “We are confident in Kennedy Wilson’s ability to continue delivering long-term value creation through this new platform.”
Kennedy Wilson and Fairfax first invested together in 2010 when the two companies acquired $250 million of real estate assets, including real estate secured loans and real property. Over the past decade, the companies have partnered on $7 billion in aggregate acquisitions, including over $3 billion of real estate related debt investments. In addition, Fairfax currently has an equity ownership interest in Kennedy Wilson of approximately 9%.
Kennedy Wilson, together with its partners, has purchased or originated over $6 billion of real estate related debt since 2010.