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WITHIN THE EUROPEAN UNION, THIS ANNOUCEMENT MAY ONLY BE COMMUNICATED TO PROFESSIONAL CLIENTS (AS DEFINED UNDER DIRECTIVE 2004/39/EC) IN BELGIUM, DENMARK, CZECH REPUBLIC, FINLAND, FRANCE, GERMANY, IRELAND, ITALY, LUXEMBOURG, THE NETHERLANDS, POLAND, PORTUGAL, SPAIN, SWEDEN AND THE UNITED KINGDOM.

PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.

6 November 2015

Kennedy Wilson Europe Real Estate Plc

("KWE" or the "Company")

Offering of €300 million 3.25% senior unsecured notes due 2025

Kennedy Wilson Europe Real Estate Plc (LSE: KWE), an LSE listed property company that invests in real estate and real estate loans in Europe, today announces its first draw down under its EMTN programme (the "Programme"), with the issuance of senior unsecured notes for an aggregate principal amount of €300 million (the "Notes").

The Notes will be issued with a minimum denomination of €100,000 and with a maturity of ten years due 2025. The annual fixed coupon will be 3.25%. 

Both KWE and the Programme are rated BBB (outlook stable) by Standard & Poor's ("S&P") and S&P is also expected to assign the same rating to the Notes.

Mary Ricks, President and CEO of Kennedy Wilson Europe, commented:

"This successful second debt issuance allows KWE to further diversify its funding sources and access the Euro debt capital markets which aligns with our committed acquisitions and investment pipeline.

"The ten-year term further staggers our debt maturities, increasing the overall weighted average term to maturity to 5.8 years and cost of debt to 2.9%. We continue to move to a more flexible corporate debt structure whilst maintaining an accretive spread between our running yields and cost of debt."

The issue and settlement date for the Notes is expected to be 12 November 2015. On or about the issue date, the Notes will be listed on the official list of the London Stock Exchange and admitted to trading on its regulated market. The Notes will rank pari passu with KWE's existing £300 million senior unsecured bonds due 30 June 2022.

Morgan Stanley is acting as sole book runner and underwriter. J.P. Morgan Cazenove, Bank of America Merrill Lynch and Deutsche Bank are co-lead managers.
 

For further information, please contact:

About Kennedy Wilson Europe Real Estate Plc

Kennedy Wilson Europe Real Estate Plc is an LSE listed property company that invests in real estate and real estate loans across Europe. It aims to generate superior shareholder returns by unlocking value of under-resourced real estate across its target geographies. Its existing portfolio, in excess of £2.5 billion, is primarily invested across office and retail in the UK and Ireland, weighted towards London, the South East and Dublin. For further information on Kennedy Wilson Europe Real Estate Plc, please visit www.kennedywilson.eu

About Kennedy Wilson (Investment Manager)

Founded in 1977, Kennedy Wilson (NYSE: KW) is a vertically integrated global real estate investment and services company headquartered in Beverly Hills, CA, with 25 offices in the U.S., U.K., Ireland, Spain, Japan and Jersey. The company, on its own or with partners, invests opportunistically in a variety of real estate related investments, including commercial, multifamily, loan purchases and originations, residential, and hotels. Kennedy Wilson offers a comprehensive array of real estate services including investment management, property services, auction, conventional sales, brokerage and research. For further information on Kennedy Wilson, please visit www.kennedywilson.com

IMPORTANT NOTICE

The securities referred to in this announcement (the "Securities") have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons as defined in Regulation S under the Securities Act.

Under no circumstances shall this announcement constitute an offer to sell or the solicitation of an offer to buy any Securities in any jurisdiction where it is unlawful to do so.

This announcement may only be communicated to persons in the United Kingdom in circumstances where section 21(1) of the Financial Services and Markets Act 2000 does not apply.

This announcement does not constitute an offer, an invitation or a solicitation for any investment or subscription for the shares of the Company.