Kennedy Wilson, Fairfax Launch $2B Real Estate Debt Platform
The companies will invest in first mortgage loans secured in the Western US, Ireland and the U.K.
BEVERLY HILLS, CA—Kennedy Wilson and Fairfax Financial Holdings have joined forces to create a $2 billion debt platform that will pursue first mortgage loans secured by real estate in the Western US, Ireland and the UK.
Asset manager Kennedy Wilson will co-invest 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.
This initiative is the latest endeavor in the two companies’ long-standing relationship. Kennedy Wilson and Fairfax first invested together in 2010 when they 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 a 9% equity ownership interest in Kennedy Wilson.
Kennedy Wilson, together with its partners, has purchased or originated over $6 billion of real estate related debt since 2010.