Kennedy Wilson Forges $200M Investment Partnership With Tokyu Land Corp.
The fund will target assets in high-growth markets.
Kennedy Wilson has partnered with Tokyu Land US Corp. to launch a preferred equity and mezzanine real estate investment platform. The partnership, intended to grow Kennedy Wilson’s credit holdings, will invest $200 million in multifamily and industrial assets that range from $10 million to $50 million in price.
The platform targets markets with strong economies on the rise, popular local amenities and proximity to employers.
Tokyu, a wholly-owned subsidiary of Tokyu Land Corporation, one of Japan’s largest real estate developers, and Kennedy Wilson will individually approve each investment. Kennedy Wilson will hold 10 percent of the venture.
Asset management will fall to Kennedy Wilson, which will earn its usual fees. The firm has more than 60,000 rental housing units owned or financed through its credit platform, and its overall management portfolio totals $28 billion in high-growth markets across the US, the UK, and Ireland.
Kennedy Wilson’s recent activity
In April, Kennedy Wilson supported a joint venture between AB & Sons and Sioni Group that obtained a $275 million financing package to develop Milano Residences, a 311-unit luxury residential project in Manhattan’s Midtown South neighborhood.
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Kennedy Wilson originated a senior loan on the deal, which was supported by Galaxy Capital Partners, Affinius and Capital InterVest Capital Partners.
In December of last year, Kennedy Wilson sold La Vista Apartments, a 460-unit asset in Santa Maria, Calif. to Westview Capital for $116 million. A month prior, a Kennedy Wilson-managed fund purchased Axle, a 226-unit community in Seattle, and Denizen, a 212-unit community in Portland, Ore.
