4 January 2016

KENNEDY WILSON EUROPE REAL ESTATE PLC

("KWE", the "Company")

KWE ACQUIRES LA MORALEJA GREEN SHOPPING CENTRE IN MADRID FOR €71 MILLION

Kennedy Wilson Europe Real Estate Plc (LSE: KWE) an LSE listed property company that invests in direct real estate and real estate loans in Europe, has completed the acquisition of La Moraleja Green shopping centre, Madrid, from ING Real Estate & Other. KWE has acquired a 95.2% stake in the centre with an underlying real estate value of €71 million (£52.2 million), reflecting a yield on cost of 6.2%. The corporate acquisition was funded from the Company's cash resources.

La Moraleja Green is located in La Moraleja Business Park in the north of Madrid. The centre's strong catchment area attracts 3.5 million visitors a year and benefits from its close proximity to a large work population from the adjacent business park and from its direct links to the affluent La Moraleja residential district.

The centre totals 318,700 sq ft of space. KWE's interest is 303,500 sq ft, with the remaining 15,200 owned and occupied by Sanchez Romero, the luxury Spanish supermarket chain. La Moraleja Green is organised over three levels providing 1,296 parking spaces and over 80 retailers, cafes, bars and restaurants as well as an eight-screen CINESA cinema. Both high street and luxury brands are represented, benefitting from strong international chains like Zara, Zara Home, Massimo Dutti, Oysho, Cos, H&M, Michael Kors and Carolina Herrera.

Existing occupancy is 80% with a WAULT of 1.8 years (6.8 years to expiry), generating NOI of €4.5 million per annum.

KWE has strong and relevant retail experience in the UK, Ireland and Spain. This acquisition represents the Company's first shopping centre purchase in Spain, and brings its total Spanish portfolio to £155.4 million across 20 assets representing 5.8% of the total £2,682.6 million portfolio.

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

"La Moraleja Green is one of Madrid's most established shopping destinations and provides KWE with significant value enhancing asset management opportunities. There are large reversions to be captured, both by letting up the vacant space and improving existing rents, which sit c. 20% below its competition.

"We believe Madrid's growing economy and improving property fundamentals coupled with stronger consumer confidence will translate to strong levels of rental growth.

"We look forward to driving future sales performance at the centre by enhancing the overall shopping experience including upgrades across both interior and exterior areas and improving the retail offering, including food and beverage. On completion of our capex programme and leasing initiatives we anticipate growing our yield on cost to c. 7.0%."

Erik Vester, Global Portfolio Manager Investments of ING Real Estate, commented:

"The divestment of La Moraleja fully resonates with our strategic objective to reduce our real estate equity exposure globally and implies another important milestone to accomplish the aforementioned. The institutional quality of La Moraleja in addition to the improved investor momentum in the Spanish marketplace contributed to a successful divestment process. The remaining Spanish real estate investment portfolio predominantly consists out of a mixed use land bank portfolio (c. 450,000 sq m)." 

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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

About ING

ING is a global financial institution with a strong European base offering banking services through its operating company ING Bank and holding a significant stake in the listed insurer NN Group NV. The purpose of ING Bank is empowering people to stay a step ahead in life and in business. ING Bank's 53,000 employees offer retail and commercial banking services to customers in over 40 countries. ING Group shares are listed (in the form of depositary receipts) on the exchanges of Amsterdam (INGA NA, ING.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).

Sustainability forms an integral part of ING's corporate strategy, which is evidenced by ING Group shares being included in the FTSE4Good index and in the Dow Jones Sustainability Index (Europe and World) where ING is the industry leader in the diversified financials group. ING Real Estate & Other, (www.ingrealestate.com), combines the residual activities of ING Real Estate Development, ING Real Estate Investment Management.

www.ing.com