The new JV of Siguler Guff and Kennedy Wilson intends to acquire both debt and equity interests in properties through Kennedy Wilson's sourcing network. In the State of California alone, Kennedy Wilson estimates that there are approximately 450 condominium projects with 37,000 unsold units.
Mary Ricks, vice chair and co-CEO of Kennedy Wilson's Commercial Investment Group, cites "the great opportunity that exists in the residential market, particularly on the West Coast," for the new venture to pursue. According to Maria Boyazny, managing director of Siguler Guff, the New York City-based firm chose Kennedy Wilson as a manager due to the company's sourcing network, strong pipeline of deals and significant relationships with financial institutions through its auction and property management divisions. Just recently, the auction division, for example, generated $21.6 million in sales of 55 units at the Market Lofts condominiums in Downtown Los Angeles.
James Corl, managing director of Siguler Guff, commented on the condominium debt market in the companies' announcement of the JV: "You can't 'extend and pretend' a broken condominium construction loan." He said that the Kennedy Wilson platform will "help provide solutions for banks wrestling with these problem loans."
Siguler Guff & Co. is a multi-strategy private equity investment firm with $8 billion of assets under management across three lines of business: fund-of-funds, advisory activities and direct investment funds. The company serves more than 350 institutional clients and 400 high-net worth individuals, and the funds it manages have invested in over 200 private equity funds.
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