Kennedy Wilson, Tokyu Land Corporation Create $200M CRE Investment Vehicle – Commercial Observer
Kennedy Wilson and the U.S. subsidiary of Japanese real estate firm Tokyu Land Corporation have formed a $200 million joint venture partnership to provide preferred equity investment and mezzanine loans for national commercial real estate deals.
The $200 million will exclusively target multifamily and industrial projects across the U.S., with equity and credit investments ranging between $10 million and $50 million, according to the companies. The new investment platform aims to deploy capital into markets with “strong and growing local economies” and assets that hold “attractive local amenities, and proximity to employment prospects,” per a statement from Kennedy Wilson.
Kennedy Wilson President Matt Windisch said in a statement that the $200 million joint venture will allow his firm to grow its investment business, which includes a vertically integrated investment team, as well as asset management and development.
“The preferred equity and mezzanine investments platform will benefit from the complementary strengths of the Kennedy Wilson and Tokyu teams as well as the track record, relationships and unique market knowledge our companies bring to the table,” said Windisch.
Thomas Whitesell, head of the debt investment group at Kennedy Wilson, will also be overseeing the joint venture.
Kennedy Wilson has financed more than 60,000 rental housing units and 12.4 million square feet of industrial space under its credit platform.
Ben Cherney, executive vice president of investments for Tokyu Land U.S. Corporation, said in a statement that the joint venture allows his firm to take “a pivotal step” to “significantly scale” its presence across the U.S. Cherney added the firm will lean into its comfort zone of providing preferred equity financing through the vehicle.
“Given their established debt platform and deep roots in Japan, Kennedy Wilson is the ideal partner for us to drive the successful execution of this growth initiative,” said Cherney.
Brian Pascus can be reached at bpascus@commercialobserver.com.
