Kennedy Wilson Europe to Raise $1.2 Billion in Property IPO

Kennedy Wilson Europe Real Estate Plc plans to raise about 750 million pounds ($1.25 billion) selling shares on the London Stock Exchange (LSE), and will use some of the proceeds to buy European properties.

Kennedy Wilson will sell shares in an initial public offering at 10 pounds each, it said in a statement today. The company has agreed to buy two portfolios with 40 office, industrial and retail properties in the U.K., valued at about 223 million pounds, it said.

“The establishment of Kennedy Wilson Europe Real Estate Plc provides a unique opportunity for public market investors to access the highly attractive real estate markets of the U.K., Ireland and Spain,” Chairman Charlotte Valeur said in the statement.

The European subsidiary of Beverly Hills, California-based Kennedy-Wilson Holdings (KW), owns assets on the continent valued at about 2.5 billion pounds. In September, the company said it bought eight shopping centers out of administration valued at about 250 million pounds.

Investors have already agreed to buy about 685 million pounds worth of the shares to be sold, according to the statement. The listed company will invest primarily in property and real estate loans in Europe, it said.

Deutsche Bank AG (DBK) and Bank of America Corp. advised on the deal, according to the statement.

To contact the reporter on this story: Dalia Fahmy in Berlin at dfahmy1@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net

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