K
ennedy Wilson (NYSE:KW) has partnered with Tokyu Land US to launch a new preferred equity and mezzanine real estate investment platform. The venture aims to target over $200 million in investments, focusing on multifamily and industrial projects nationwide. Kennedy Wilson will hold 10% of the venture and manage the investments, leveraging its expertise as an owner and operator of over 60,000 rental housing units and 12.4 million square feet of industrial space.

    The platform will focus on investments ranging between $10 million and $50 million in markets with strong economies and employment prospects. Kennedy Wilson's partnership with Tokyu Land US represents a strategic expansion of its fee-generating investment management business while maintaining direct capital exposure. The company aims to grow its investment management business alongside top-tier strategic partners, potentially creating a repeatable model for future capital partnerships.

    The platform will target investments in multifamily and industrial properties, leveraging Kennedy Wilson's operational expertise in sectors that have demonstrated resilience. By focusing on preferred equity and mezzanine financing, the platform addresses a middle-market segment often underserved by both smaller local players and large institutional investors. The partnership structure with Tokyu brings complementary strengths, with Kennedy Wilson contributing its vertically integrated investment platform and operational expertise, while Tokyu provides access to Japanese capital seeking stable returns with downside protection.

    Kennedy Wilson will manage the investments and earn customary fees, leveraging the company's deep expertise as an owner, operator, and debt provider for multifamily and industrial properties across the United States, the UK, and Ireland. The platform aims to provide stable returns with low to mid-teen yields and robust downside protection, making it an attractive option for investors seeking a balance of yield generation and credit quality.

    The partnership between Kennedy Wilson and Tokyu Land US represents a significant expansion of Kennedy Wilson's investment management business, further scaling its thriving credit platform. With over $28 billion in assets under management, Kennedy Wilson is well-positioned to capitalize on the growing demand for real estate investments and continue to drive growth through strategic partnerships like this one.