Kennedy Wilson has formed a $2bn (£1.6bn) real estate debt platform with Fairfax Financial Holdings.
The platform will target first mortgage loans secured by high-quality real estate in the Western US, Ireland and the UK.
Kennedy Wilson will act as asset manager, but would also co-invest alongside Fairfax with an average ownership of 20% in the investments, which will be made without leverage. It 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 Kennedy Wilson, chairman and chief executive, William McMorrow.
Prem Watsa, chairman and chief executive of Fairfax, added: “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. 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 $250m real estate assets, including real estate secured loans and real property. Over the past decade, the companies have partnered on $7bn in aggregate acquisitions, including more than $3bn of real estate related debt investments.
Fairfax has a 9% equity ownership interest in Kennedy Wilson.
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