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WITHIN THE EUROPEAN UNION, THIS ANNOUNCEMENT 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.

19 April 2016

Kennedy Wilson Europe Real Estate Plc

("KWE" or the "Company")

KWE COMPLETES TAP ISSUE OF €150 MILLION SENIOR UNSECURED NOTES DUE 2025

Further to its announcements on 13 April 2016 and 18 April 2016, 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, today announces the successful completion of the tap for an aggregate principal amount of €150 million (the "New Notes") to the €400 million outstanding senior unsecured notes issued by KWE under its EMTN Programme (the "Programme") in November 2015 (ISIN: XS1321149434) (the "Initial Notes" and, together with the New Notes, the "Notes").

The New Notes will be consolidated and form a single series with the Initial Notes. The New Notes have been issued at a yield of 3.039% and will mature on 12 November 2025. The New Notes, along with KWE, the Initial Notes and the Programme, are rated BBB (outlook stable) by Standard & Poor's.

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

"The success of this further bond issue shows the continued attractiveness of Kennedy Wilson Europe to bondholders. It gives us additional capital flexibility while improving our mix of fixed rate debt and has meant we maintain an attractive 2.85% cost of debt and extended term to maturity of 6.4 years."

The New Notes are listed on the official list of the London Stock Exchange and admitted to trading on its regulated market. The Notes rank pari passu with KWE's existing £300 million senior unsecured bonds due 30 June 2022.

BofA Merrill Lynch, J.P. Morgan Cazenove and Morgan Stanley acted as joint bookrunners.

-Ends-

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)

Kennedy Wilson Europe Real Estate Plc is externally managed by a wholly-owned Jersey incorporated subsidiary of Kennedy Wilson. Kennedy Wilson (NYSE:KW) is a global real estate investment company.  KW owns, operates, and invests in real estate both on its own and through its investment management platform.  KW focuses on multifamily and commercial properties located in the Western U.S., UK, Ireland, Spain, Italy and Japan. To complement KW's investment business, the Company also provides real estate services primarily to financial services clients. 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.