Kennedy Wilson and Partner Acquire Real Estate Portfolio of 29 UK Assets for £63M

  Kennedy Wilson and Partner Acquire Real Estate Portfolio of 29 UK Assets for
  £63M

Business Wire

BEVERLY HILLS, Calif. -- January 17, 2013

International real estate investment and services firm Kennedy Wilson (NYSE:
KW) today announced that the company and one of its investment partners
acquired a portfolio of 29 U.K. real estate assets for approximately £63
million ($101 million) out of a CMBS pool of assets. Kennedy Wilson invested
$21 million of equity in the transaction. The properties were purchased on an
all cash basis.

Sixty percent of the portfolio’s assets are located in London and the
Southeast, with the remaining spread throughout the rest of the country. The
asset types are primarily office buildings but also include industrial and
retail properties. The combined floor area of the properties is in excess of
1.1 million sq. ft. On a trailing twelve month basis, the properties currently
generate a 15% yield.

“This portfolio is an excellent mix of assets with significant value-add
opportunity,” said Mary Ricks, president and CEO of Kennedy Wilson Europe. “We
believe that our asset management expertise will allow us to maximize the
potential of the properties and provide excellent returns for Kennedy Wilson
and our partner.”

Last month, the company, in partnership with a European financial institution,
acquired a large U.K.-based commercial loan portfolio secured by real estate.
Since the beginning of last year, Kennedy Wilson has  completed $1.5 billion
of acquisitions in Europe, including $1 billion of acquisitions since the
beginning of the fourth quarter. In total, Kennedy Wilson has contributed
approximately $131 million into these transactions.

About Kennedy Wilson

Founded in 1977, Kennedy Wilson is an international real estate investment and
services company headquartered in Beverly Hills, CA with 24 offices in the
U.S., U.K., Ireland, Spain and Japan. The company offers a comprehensive array
of real estate services including auction, conventional sales, property
services, research and investment management. Through its fund management and
separate account businesses, Kennedy Wilson is a strategic investor of real
estate investments in the U.S., U.K., Ireland and Japan. For further
information on Kennedy Wilson, please visit www.kennedywilson.com.

Cautionary Statement

We calculate the yield for an individual real estate asset by dividing the net
operating income for such asset for the twelve-month period prior to our
acquisition of such asset by the purchase price for such asset. We caution you
not to place undue reliance on the yield referenced in this release because
the net operating income figures used in such calculation are based solely on
the data that were made available to us during the diligence processes for the
acquisitions referenced in this release. Moreover, past operating results
should not be relied upon as an indication of future operating results. In
addition, net operating income is calculated on a non-GAAP basis.

Contact:

Kennedy Wilson
Christina Cha
VP of Corporate Communication
(310) 887-6294
ccha@kennedywilson.com
www.kennedywilson.com