BEVERLY HILLS, Calif. , May 6 /PRNewswire-FirstCall/-- Kennedy Wilson, Inc.
(KWIC.PK), an international real estate investment and services firm announced
today that it is raising $40 million through the issuance of preferred stock.
The shares will be entitled to a 7% cumulative annual preferred dividend
and must convert to common stock at $42 per share within three years. The
stock currently trades at $40 per share. Senior management and its largest
outside shareholder will be purchasing $7.5 million of the preferred stock
offering of which William J. McMorrow, Chief Executive Officer of Kennedy
Wilson, Inc., will personally invest $5 million . He closed his purchase on
May 5, 2008 . Mr. McMorrow stated, 'We have historically generated very high
rates of return from all of our investment activities. We are uniquely
positioned to take advantage of the current opportunities in all sectors of
the real estate investment business. In addition, our services platform led
by our real estate auction business should have a record year in 2008.'
Kennedy Wilson has established various investment funds and strategic
alliances with the intention of acquiring assets totaling $3 billion over the
next three years. The equity requirement to accomplish this goal is $1
billion , of which Kennedy Wilson's investment share will amount to
approximately $100 million .
Kennedy Wilson believes that the significant restructuring now underway in
almost every real estate asset class presents a historic profit-making
opportunity similar to that which existed in the early 1990's for those
companies which can move prudently and quickly. In order to take advantage of
this opportunity, the company intends to have available $200 million of cash
which will be generated from its asset sales, unused lines of credit and the
proceeds from the preferred stock offering.
Founded in 1977, Kennedy Wilson is a real estate services and investment
firm headquartered in Beverly Hills, CA , with 20 offices throughout the U.S.
and Japan . It seeks opportunities in partnership with clients in pursuit of
above-market investor returns and higher real estate values. KW Fund
Management is the fund investment division of Kennedy Wilson. The group is
actively involved in the acquisition, asset management, operation,
rehabilitation, repositioning and disposition of real estate assets. Visit
www.kennedywilson.com for further information.
Contact: Kennedy Wilson
9601 Wilshire Blvd., Suite 220
Beverly Hills, CA 90210
Freeman Lyle, Executive Vice President -
Chief Financial Officer
310-887-6400
SOURCE Kennedy Wilson, Inc.
