NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRIA, BULGARIA, CROATIA, CYPRUS, ESTONIA, GREECE, HUNGARY, LATVIA, LITHUANIA, MALTA, ROMANIA, SLOVAKIA OR SLOVENIA OR IN OR INTO ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OR BREACH OF ANY APPLICABLE LAW.

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.

13 September 2016

KENNEDY WILSON EUROPE REAL ESTATE PLC

("KWE", the "Company")

KWE TO ISSUE FURTHER £200 MILLION SENIOR UNSECURED BONDS DUE 2022

Kennedy Wilson Europe Real Estate Plc (LSE: KWE), an LSE listed property company that invests in real estate across the UK, Ireland, Spain and Italy, today announces the issuance of a tap for an aggregate principal amount of £200 million (the "New Bonds") to the £300 million 3.95% Bonds due 30 June 2022 issued by KWE on 30 June 2015 (ISIN: XS1117292554) (the "Initial Bonds" and, together with the New Bonds, the "Bonds"). The New Bonds shall be consolidated and form a single series with the Initial Bonds. The New Bonds will rank pari passu with the Initial Bonds.

The New Bonds will be issued at a yield of 3.572% and will mature on 30 June 2022.

The New Bonds along with the Initial Bonds and KWE are rated BBB (outlook stable) by Standard & Poor's.

The net proceeds from the issue of the New Bonds will be utilised towards repayment of certain secured debt and for general corporate purposes.

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

"Today's £200 million bond issue is a further positive step in our continued progress towards moving to a more flexible debt structure with a greater proportion of unsecured finance, and we are very pleased with the result. 90% of our total debt is now fixed rate or hedged and our overall debt term to maturity extends to 6.1 years, whilst maintaining an attractive cost of debt at 2.97%."

The issue and settlement date for the New Bonds is expected to be 19 September 2016. On or about the issue date of the New Bonds, the New Bonds will be listed on the official list of the London Stock Exchange and admitted to trading on its regulated market.

BofA Merrill Lynch, Deutsche Bank and J.P. Morgan Cazenove 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 across the UK, Ireland, Spain and Italy. 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 £3.0 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 Holdings, Inc.

Kennedy-Wilson Holdings, Inc. (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, it 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. Recipients of this announcement who intend to subscribe for or purchase the Securities are reminded that any subscription or purchase may only be made on the basis of the information contained in the final prospectus relating to the Securities.

This announcement is an advertisement and is not a prospectus for the purposes of EU Directive 2003/71/EC, as amended and/or Part VI of the Financial Services and Markets Act 2000.

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.

KWE is regulated in Jersey by the Jersey Financial Services Commission (the "JFSC") as a listed fund pursuant to the Jersey Listed Fund Guide published by the JFSC and the Collective Investment Funds (Jersey) Law 1988. The JFSC does not take any responsibility for the financial soundness of KWE or the correctness of any statement made or expressed in this announcement. The JFSC is protected by the Collective Investment Funds (Jersey) Law 1988 against any liability arising from the discharge of functions under that law. The JFSC is also protected by the Financial Services (Jersey) Law 1998 against liability from the discharge of its functions under that law.