Kennedy Wilson has formed a €278m partnership with Fairfax Financial to invest in European commercial real estate.
The investment platform will initially focus on buying commercial property loans and direct property in the UK and Ireland, with Fairfax providing a €250m capital commitment alongside a 10% co-investment from the US investment manager.
This platform follows on from the pair’s fully invested $278m US real estate investment partnership.
It is the latest significant move into the European property market by the Beverly Hills-headquartered firm, which has already bought a £1.1bn UK property loan book from Bank of Ireland and, separately, the bank’s real estate investment management business.
A statement from KW said Fairfax will “review and approve all opportunities” that it sources through the new European platform.
The firm added that “it will play the lead role in sourcing, negotiating and executing the acquisition of investment opportunities in addition to holding responsibility for due diligence, financing, property management, asset management and disposition”.
Fairfax chairman and chief executive, Prem Watsa, said: “We are pleased with our US commercial real estate partnership with Kennedy Wilson, and look forward to investing in European assets through this new platform.”
“Kennedy Wilson and its partners have completed $3.7bn of deals in the UK and Ireland to date,” said William McMorrow (pictured), chairman and chief executive of Kennedy Wilson. “We are excited about continuing our relationship with Fairfax overseas and to pursue additional opportunities in Europe.”
bridget.oconnell@estatesgazette.com
