Kennedy Wilson Holdings plans to issue and sell 4.8 million shares of its common stock at $10.70 per share to two global institutional investors in order to fund future investments.
According to an announcement issued by Kennedy Wilson this morning, this transaction will result in gross proceeds of roughly $51.4 million. In addition to providing access to more capital, the capital raising would broaden the Beverly Hills, California-based global real estate investment firm's shareholder base.
According to documents filed with the SEC, the two institutional investors are Fairfax Financial Holdings and Fidelity Investments. Kennedy Wilson intends to use the net proceeds from the private placement to fund future acquisitions and for general working capital purposes. No private placement agents were associated with this transaction.
The selling of the stock comes at an active investment period for the firm. It follows on the heels of Kennedy Wilson's recent takeover of the Bank of Ireland's €1.6 billion ($2.3 billion) property investment management business, marking Kennedy Wilson’s entry to the European market.
In addition, firm has recently purchased a portfolio of five Los Angeles-area office buildings for $144 million. That acquisition added 700,000 square feet to its portfolio and increases its total assets under management to $9.8 billion.
Kennedy Wilson is currently raising its fourth opportunistic real estate fund, targeting $300 million in commitments. Late last month, Kennedy Wilson held an initial closing for Kennedy Wilson Real Estate Fund IV of $118 million.