Kennedy Wilson announces $300m perpetual preferred equity investment from Fairfax Financial

Fairfax Financial Holdings Ltd., through its affiliates, has agreed to make a $300 million strategic preferred equity investment in Kennedy Wilson.

Kennedy Wilson expects to use the proceeds to fund its development pipeline and real estate investments, as well as pay off its unsecured bank borrowings in full.

Along with the equity investment, Fairfax has increased its first mortgage target within Kennedy Wilson’s debt investment platform by $3 billion to $5 billion. Kennedy Wilson expects to have an approximate 5 percent interest in future debt investments within the platform while earning customary fees in its role as asset manager. In addition to the $2 billion already invested across Kennedy Wilson’s global debt platform, there is now approximately $4 billion in additional investment capacity with a strong pipeline of future opportunities.

“We are excited to expand our long-standing relationship with Fairfax through this preferred equity investment and