Kennedy Wilson Announces the Initial Closing of Its Second Real Estate Investment Fund

BEVERLY HILLS, Calif., May 1 /PRNewswire-FirstCall/ -- Kennedy Wilson Fund Management Group, a division of Kennedy Wilson (OTC: KWIC), an international real estate services and investment firm, has announced the formation of a new real estate investment fund. When fully invested, Kennedy Wilson Property Fund, will be a value-added U.S. investment fund with $200 million in equity and $570 million in assets, according to Barry Schlesinger, Chairman of KW Fund Management.

'The objective of our new fund is to capitalize on opportunities in office and industrial submarkets mostly in the Southeast and Western U.S.,' Schlesinger said. 'We'll rely on KW's vast market knowledge, national resources and underwriting capabilities, to acquire quality assets at below replacement cost and add value to them by applying management techniques which will enhance both occupancy and rental growth.'

Among the institutional investors in KW Fund II are CalPERS, Wachovia Securities, US Bank and KW itself.

KW Fund II is the second in a series of real estate investment partnerships to be launched by Kennedy Wilson. KW Fund I was formed in 2000 with $160 million in assets. 'We've already successfully disposed of most of the original properties in that portfolio and are in the process of reinvesting the capital. When the initial portfolio is completely liquidated we will have significantly exceeded our IRR pro forma,' Schlesinger noted. When fully funded, Fund I and Fund II will have combined assets of approximately $730 million .

Founded in 1977, KW is a real estate services and investment firm headquartered in Beverly Hills, CA. with 18 offices throughout the U.S. and Japan . KW seeks opportunities in partnership with clients in pursuit of above-markets investor returns and higher real estate asset values. KW Fund Management, is the fund investment division of KW. The group is actively involved in the acquisition, asset management, operation, rehabilitation, repositioning and disposition of real estate assets. Visit www.KennedyWilson.com for more information.

Contact: Clive Hoffman Associates, Inc