Global real estate investment company Kennedy Wilson has partnered with Tokyu Land US Corporation, a wholly owned subsidiary of Tokyu Land Corporation (Tokyu), one of Japan’s largest real estate developers, to launch a new preferred equity and mezzanine real estate investment platform. The expanded credit solution focus will further scale Kennedy Wilson’s thriving credit platform.
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Kennedy Wilson and Tokyu will target over $200 million in investments with a focus on preferred equity investments and mezzanine loans to high-quality sponsors across multifamily and industrial projects nationwide. The platform is targeting markets with strong and growing local economies, attractive local amenities, and proximity to employment prospects. The platform’s target investment size will generally range between $10 million and $50 million. Each investment within the platform will be approved by both Tokyu and Kennedy Wilson and Kennedy Wilson will hold 10% of the venture.
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“We are pleased to establish this new platform that will build on the success we’ve experienced in our credit platform and expand our involvement across all parts of the capital stack. It also furthers our corporate goal to grow our investment management business alongside top-tier strategic partners that share our investment values,” said Kennedy Wilson President Matt Windisch. “The preferred equity and mezzanine investments platform will benefit from the complementary strengths of the Kennedy Wilson and Tokyu teams as well as the track record, relationships and unique market knowledge our companies bring to the table.”
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“This partnership with Kennedy Wilson represents a pivotal step in Tokyu’s accelerated expansion within the U.S. market,” said Ben Cherney, Executive Vice President of Investments for Tokyu Land US Corporation. “Leveraging our proven success in preferred equity, this venture establishes a strategic platform to significantly scale our U.S. presence. Our preferred equity program offers a compelling value proposition for Japanese investors like Tokyu, providing stable returns and cash flow with robust downside protection and attractive low to mid-teen yields. Given their established debt platform and deep roots in Japan, Kennedy Wilson is the ideal partner for us to drive the successful execution of this growth initiative.”
Kennedy Wilson will manage the investments and earn customary fees, leveraging the company’s deep expertise as an owner, operator, and debt provider for multifamily and industrial properties across the United States, the UK, and Ireland. Currently, Kennedy Wilson has over 60,000 rental housing units either owned or financed through its growing credit platform, and approximately 12.4 million square feet of industrial space under management. The company’s established global investment platform comprises a vertically integrated investment, asset management, and development team, as well as operating and reporting systems.
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Source – PR Newswire
