Kennedy Wilson Completes $8B Global Real Estate Merger


 
 
12:39 10/21/2017

Global real estate investment company Kennedy-Wilson Holdings, Inc. KW  announced the completion of its merger with Kennedy Wilson Europe Real Estate Plc KWE, which trades publicly on the London Stock Exchange.

The transaction creates a leading global real estate investment and asset management platform with an $8 billion enterprise value.

KW  is a global real estate investment company with wholly owned real estate and an investment management platform. The company currently has a focus on the Western U.S., United Kingdom, Ireland, Spain, Italy and Japan.

By simplifying their corporate structure, KW  can develop a more fluid income as a result of more stable real estate cash inflows and opening up the now single company to greater value-adding initiatives globally.

The growth initiative has efforts in expanding the global platform of the financial strengths of KW  and KWE by targeting growth opportunities from risk-adjusted returns on capital investments and increasing the value of the joint portfolio.

KW  had their beginnings with a single office in Santa Monica, California, and now has 27 offices in six countries. Since their IPO in 2009 Kennedy Wilson has entered into acquisitions worth approximately US $20 billion with partners.

The company’s investments include commercial, multifamily and residential properties with services ranging from investment management and property services, to brokerage and research.

The London partner’s portfolio of 207 assets with 11.4 million square feet and a weighted average residual rental period of 7.4 years has an expected EBIT of more than $200 million.

The company reported that after the merger, KW  will benefit from an improved balance sheet and a higher recurring income and plans to increase the next quarterly dividend to USD 0.19 cents per share an increase of 12 percent.

Investors could see this as an opportunity to see yearly returns of about .76 cents a year in dividends, a favorable outcome for those with considerable shares.

The resulting news could mean increased market activity on KWE  over the next trading session with investors looking to capitalize on the merger’s potential for the future.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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