Press Release: Kennedy-Wilson, Inc.
October 2, 2001
BEVERLY HILLS, CA -- Kennedy-Wilson, Inc. (Nasdaq: KWIC), the international real estate services and fund management
firm, yesterday announced plans for an initial public offering (``IPO'') of its fast growing subsidiary Kennedy-Wilson
Japan, Inc. (``Kennedy-Wilson Japan''). The shares will be listed on Nasdaq Japan at a price to be determined at
the time of the offering. Nikko Salomon Smith Barney is the lead underwriter for the offering. Timing for the listing
is currently targeted for the end of October.
Proceeds from the offering of newly issued shares will be used to finance the future growth of the company and
retire existing debt. Kennedy-Wilson Japan has experienced phenomenal growth since its inception in 1993, and the
company successfully completed another record year in 2000. Consolidated Operating Income for the first six months
of 2001 increased 96% for the same period last year.
Richard Mandel, President of Kennedy-Wilson's Commercial Group states that, ``We continue to see tremendous opportunity
for growth in the Japanese market. The IPO will not only allow Kennedy-Wilson Japan to raise the capital to take
advantage of these opportunities, but it also creates a corporate structure in Japan, which will provide our employees
with an incentive stock option plan. In addition, the IPO will provide Kennedy-Wilson, Inc. with the ability to
recognize the value of its long term investment in Japan.''
According to William J. McMorrow, Chairman and CEO of Kennedy-Wilson, ``Kennedy-Wilson Japan has been operating
as a separate unit for many years. The IPO is the logical next step in the growth progression of the company. We
chose Nasdaq Japan because we feel it will offer our shares the best liquidity. We also decided on Nasdaq Japan
because of our close relationship with Nasdaq in the United States.''
Over the past seven years, Kennedy-Wilson Japan has developed a successful business in real estate investment,
asset management, brokerage, and advisory. The firm is one of the most active investors in both office properties
and non-performing loans in Japan and also owns a loan servicing company called Pacific Servicing. Kennedy-Wilson
Japan and its subsidiaries now employ more than 125 Japanese nationals.
Founded in 1977, Kennedy-Wilson, Inc. is an international real estate investment, services and fund management
firm headquartered in Beverly Hills with 20 offices throughout the United States and Japan. The company offers
a comprehensive array of real estate services including brokerage, asset management, property management, development,
investment sales and acquisition. The firm sources and places debt and equity for the acquisition of real estate
through its investment and fund management divisions. Kennedy-Wilson is a strategic investor and manager of value-added
and core portfolio investments, both in partnership with institutional investors and in wholly owned projects in
the United States and Japan. Kennedy-Wilson provides real estate services to Japanese and international investors
from its regional headquarters office in Tokyo.
This release contains forward-looking statements as well as historical information. Statements of goals and strategies
and words such as ``plan,'' ``believe,'' ``anticipate,'' ``expect,'' ``objectives,'' ``forecast,'' and ``predict''
and other similar words are intended to identify forward-looking statements. These forward-looking statements are
included in accordance with the ``safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995,
and involve risks, uncertainties and other factors that may cause the company's actual results, performance, or
financial condition to be materially different from any results, performance, or financial condition suggested
by the statements in this release.
SOURCE: Kennedy-Wilson, Inc.