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Kennedy Wilson closes $500m US fund

The Beverly Hills, California-based firm has wrapped up fundraising for its biggest vehicle to date.

Kennedy Wilson, the global real estate investment firm, has closed its biggest US fund yet, the firm said Wednesday.

The Beverly Hills, California-based firm launched Kennedy Wilson Real Estate Fund V in September 2014 and closed the vehicle at $500 million, including a $60 million co-investment from Kennedy Wilson. The firm will invest capital from the value-add fund across property types, focusing on West Coast markets. Kennedy Wilson has deployed $140 million of equity so far, buying nine multifamily, office, retail and residential assets with an aggregate purchase price of $365 million, according to a statement.

The firm’s investor base comprises predominantly public and corporate pension funds, with investors from the US, Middle East and Europe. Investors in the latest fund included Tennessee Valley Authority Retirement System and Fresno County Employees Retirement System, according to PERE Research & Analytics. More than half of the investors in the predecessor fund invested in the fifth vehicle, a spokeswoman told PERE.

“We are proud to have the support of Kennedy Wilson as the fund’s largest investor,” said Nicholas Colonna, the firm’s president of fund management, in a statement Wednesday. “Our firm’s strong track record and unique platform resulted in attracting numerous new institutional investors while also retaining many existing limited partners.”

Kennedy Wilson closed the fund’s predecessor vehicle in June 2013 at $303 million, including $15 million from the firm.

The firm’s most recent public transaction was the five-property sale of an office portfolio in the UK last month for $148 million to local developer RO Real Estate, according to real estate data provider Real Capital Analytics.