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LONDON, UK / ACCESSWIRE / November 17, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Kennedy-Wilson Holdings, Inc. (NYSE: KW), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=KW. Kennedy, a leading global real estate investment Company, announced on November 15, 2017, that it has completed the sale of two real estate assets for a total sum of $340 million. These two assets include the Summer House located in the US and Gardner House in Ireland. The Company intends to utilize the sales proceeds for purchasing 996 units across four multifamily properties in the Pacific Northwest and for repaying its unsecured debt. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Financial Details

  • Summer House, which is a wholly owned 615-unit apartment community in Alameda, California was sold for $231 million. It marks the largest multifamily transaction in the San Francisco Bay Area in 2017. Besides, it is also amongst the largest single asset real estate transaction recorded in the East Bay.

  • The second asset sold was the Gardner House, which is a 75,600 square-foot office building in Dublin, Ireland. It was sold for a total sum of $73 million.

  • It is estimated that the transactions would generate a total profit of approximately $130 million for Kennedy-Wilson in Q4 2017.

Kennedy-Wilson to Use the Sales Proceeds to Buy New Assets and Repay Debt

  • Kennedy-Wilson intends to reinvest part of the sale proceeds into four separate multifamily assets with a total of 996 units in the Pacific Northwest through 1031 exchanges.

  • Kennedy-Wilson has already acquired Latitude, which is a 210-unit apartment community built in 2008 in Happy Valley, Oregon, and Heatherwood, which is a 264-unit apartment community in Gresham, Oregon.

  • On an average, these newly acquired multifamily properties are about 40 years newer than Summer House.

  • The remaining two multifamily acquisitions involve 522 units in the greater Seattle and Portland markets. Kennedy-Wilson expects to close these acquisitions by the end of 2017.

  • Additionally, Kennedy-Wilson also plans to pay down its unsecured debt under the revolving credit facility with the sales proceeds.

Sale Aligns with Kennedy-Wilson's Overall Strategy

William J. McMorrow, Chairman and Chief Executive Officer of the Company, noted that these sales mark an important development in Kennedy-Wilson's capital recycling goals. It is also in-line with the Company's constant efforts for upgrading the quality of its assets and creating greater liquidity across its portfolio.

He believes that this transaction also throws light on the Company's value-add capital and management initiatives. For instance, Kennedy-Wilson increased the net operating income of Summer House by approximately 109% over seven years. This was also possible because, over the years, Bay Area has established itself as one of the highest growth job and real estate markets in the country.

Second Major Apartment Sale for Kennedy-Wilson's Multifamily Group

  • The Summer House deal marks the second significant apartment sale for Kennedy-Wilson's multifamily group over the past several months.

  • Prior to this, Kennedy-Wilson sold Rock Creek Landing in Kent, Washington for approximately $109 million in July 2017. Subsequently, it used the proceeds to acquire 90 East, which is a 573,000 square-foot office campus in Issaquah, Washington.

  • After four months of obtaining the ownership of 90 East, the Kennedy-Wilson's team achieved a seven-year extension on the lease for the 177,000 square feet Costco property. It, thus, secured the long-term stability of its well-located office asset.

Last Close Stock Review

At the close of trading session on Thursday, November 16, 2017, Kennedy-Wilson's stock price slightly rose 0.81% to end the day at $18.70. A total volume of 1.66 million shares were exchanged during the session, which was above the 3-month average volume of 1.20 million shares. The Company's shares are trading at a PE ratio of 140.60 and have a dividend yield of 4.06%. At Thursday's closing price, the stock's net capitalization stands at $2.84 billion.

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SOURCE: Pro-Trader Daily