A deal has been struck to buy out Kennedy-Wilson Holdings for a total of $1.65 billion. The acquisition was led by a consortium that includes current CEO and Chairman of the real estate investment firm, William McMorrow and Canadian-based Fairfax Financial.
The definitive agreement, which equals $10.90 per share, represents a 46 percent premium to Kennedy's stock close on November 4, which was the last trading day before the consortium originally sent the proposal to acquire the firm.
The deal is expected to close in the second quarter of 2026, with the acquisition still subject to customary closing conditions, including getting the green light from the majority of the shareholders. The move would result in Kennedy going private.
J.P. Morgan Securities LLC and BofA Securities, Inc. are acting as financial advisors for the consortium, with Ropes & Gray, LLP advising Kennedy from a legal standpoint.
No other details were provided.
Kennedy's real estate portfolio extends to $31 billion in assets under management, located not only in the U.S. but in Ireland and the United Kingdom as well. Since going public in 2009, the Beverly Hills-based firm has closed over $60 billion in real estate transactions.
Recently, a big deal involved Kennedy acquiring Toll Brothers' Apartment Living platform for $347 million. Plus, Kennedy at the time said it would invest another roughly $90 million in the purchased assets.
In addition to apartments and residential, Kennedy operates properties in other asset classes, including hotels, office, retail and industrial. In the U.S., its portfolio is concentrated in Southern and Northern California, with just a couple of properties located in Hawaii.
McMorrow first acquired Kennedy in 1988, 11 years after the company's founding. Once the deal closes, it remains to be seen if anything will change with Kennedy, with McMorrow, Fairfax and others at the helm.
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