- Kennedy Wilson’s CEO William McMorrow, alongside Fairfax Financial Holdings and senior executives, has proposed to take the company private in a $1.5B deal.
- The $10.25-per-share offer represents a 38% premium to the company’s recent stock price, with no outside financing required.
- The offer comes as Kennedy Wilson expands its multifamily holdings, including a $347M acquisition of Toll Brothers Apartment Living.
A Push to Go Private
Beverly Hills-based real estate investment firm Kennedy Wilson has received a buyout offer to go private in a deal valued at $1.5B, per Bisnow. The proposal comes from a group led by Chairman and CEO William McMorrow. It includes Toronto-based Fairfax Financial Holdings and other senior executives. Together, they already own 31% of the firm.
The offer, presented in a letter Tuesday, would purchase the remaining shares at $10.25 each. That represents a 38% premium over Kennedy Wilson’s closing stock price that day.
Why Now
The buyer group emphasized that the company could eliminate public market reporting obligations and associated costs by going private. The letter also noted that the offer provides shareholders “liquidity and certainty of value” at what it called a “compelling” price.
Importantly, the group stated it has sufficient liquidity to fund the deal and will not require outside financing.
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Multifamily Momentum
The offer coincides with Kennedy Wilson’s aggressive pivot toward the multifamily sector. In September, the firm announced a $347M acquisition of Toll Brothers Apartment Living, expected to close in October.
CEO McMorrow has outlined plans to grow Kennedy Wilson’s multifamily exposure from 65% to 80%, aiming to scale from approximately 70,000 units to 90,000–100,000 units in the next few years.
Strategic Growth
At the end of Q2, Kennedy Wilson managed $30B in real estate assets — a 70% increase from 2021. The company is also active in office-to-residential conversions, including two major projects in the Washington, D.C. area, with more in the pipeline.
What’s Next
Kennedy Wilson is set to host its Q3 earnings call on Thursday. The company’s stock surged over 30% on Wednesday. The buyout news sparked strong investor reaction to potential privatization.
Interest in multifamily real estate is rising. With its growth strategy, Kennedy Wilson’s future looks poised for major transformation.
