BEVERLY HILLS, CA - Siguler Guff and Kennedy Wilson (NYSE Amex:KWIC) announced a joint venture with a total equity commitment of up to approximately $108 million (up to approximately $100 million from Siguler Guff and up to approximately $8 million from Kennedy Wilson), to pursue acquisition and repositioning opportunities of distressed assets with a focus on residential condominium projects. The joint venture intends to acquire both debt and equity interests in properties through Kennedy Wilson's sourcing network. In the State of California alone, Kennedy Wilson estimates that there are approximately 450 condominium projects with 37,000 unsold units.
"Siguler Guff selected Kennedy Wilson as a manager due to the company's vast sourcing network, strong pipeline of deals and significant relationships with financial institutions through its auction and property management divisions. We look forward to working with the seasoned Kennedy Wilson team that has consistently demonstrated an impressive capacity to evaluate potential acquisitions and to create value in a short time frame," said Maria Boyazny, Managing Director of Siguler Guff.
"You can't 'extend and pretend' a broken condominium construction loan. Kennedy Wilson possesses a unique platform to help provide solutions for banks wrestling with these problem loans," said James Corl, Managing Director of Siguler Guff. "We believe that this also presents opportunities for investors; and Kennedy Wilson has the expertise in this area to find the right ones."
"We are extremely pleased to announce this venture," said Mary Ricks, Vice Chair and co-CEO of Kennedy Wilson's Commercial Investment Group. "Siguler Guff and Kennedy Wilson recognize the great opportunity that exists in the residential market, particularly on the west coast, and we are proud to be working side by side with their talented team to take advantage of this great investment opportunity."
"We are thrilled to have Siguler Guff as a new equity partner," said Don Herrema, Vice Chair and CEO of Kennedy Wilson's Capital Markets Group. "We look forward to continuing to grow this relationship over time as we produce positive results for Siguler Guff and their clients."
Siguler Guff & Company is a multi-strategy private equity investment firm with $8 billion of assets under management across three lines of business: fund-of-funds, advisory activities and direct investment funds. Siguler Guff serves over 350 institutional clients and 400 high net worth individuals, and the funds it manages have invested in over 200 private equity funds. The firm is headquartered in New York and has offices in Boston, Moscow, London, Shanghai and Mumbai.
Founded in 1977, Kennedy Wilson is a vertically-integrated real estate investment and services company headquartered in Beverly Hills, CA with 21 offices in the U.S. and Japan. The company offers a comprehensive array of real estate services including property and asset management, brokerage and auction services, and construction and trust management. Through its fund management and separate account businesses, Kennedy Wilson is a strategic investor and manager of real estate investments in the United States and Japan.
Source: Kennedy Wilson