Kennedy Wilson Raises $775M for Value-Add Fund
The closed-end fund has exceeded its original target.
BEVERLY HILLS, CA—Kennedy Wilson has secured $775 million of capital commitments for its sixth real estate fund, exceeding its target. Kennedy Wilson Real Estate Fund VI will focus on value-add real estate investments across the Western US, with a focus on underperforming real estate that should benefit from a significant repositioning or renovation.
“Institutional investors continue to show a strong appetite for real estate in West Coast markets, many of which are leading the country in job creation, wage gains and technology trends,” said Nicholas Colonna, president of Commercial Investments and Fund Management, in prepared remarks.
Fund VI will have purchasing power of $2 billion in commercial assets.
The fund is the largest private placement in the company’s 31-year history and is 55% larger than its predecessor fund, which closed in 2016.
Investors in the fund included private wealth management offices, public and corporate pension funds, and family offices. Kennedy Wilson committed $82 million to the fund. Fund VI has a current portfolio of 12 multifamily, office, retail and other commercial assets with an aggregate purchase price of $1.1 billion. It has deployed $386 million of equity to date.