don't think they transferred the old deals but I could be wrong. What I mean by money in hand is that now that have the $1.7 billion in cash in the new company while before they had to go out and arrange the financing for each deal with various deep pocket investors. And this allows in the future for them to sell stock in KWE to raise capital for new deals without diluting KW.
i don't think they'll do any deals in europe without running them through KWE. it wouldn't really make sense. for all the assets owned in europe, how were they transferred to KWE? Were they sold by KW to KWE? is that what you mean by "they have the money in hand?
kw will own approx 12 1/2 % of each deal because of their percentage ownership. That is not all that different from many of the deals they are in.....and nothing stops them from making deals outside the new venture.....and now they HAVE the money in hand....no more running each deal through its money partners...much more efficient....I think this will allow them to make some very big deals.
I'm not convinced the spin off was that great because the profits KWE will be pocketing should belong to KW. Fees will be great but it seems like KW just gave away some of its most lucrative business (europe/spain) to a new group of shareholders. I guess it all remains to be seen what kind of fees KW will reap. It just sounds like the money KW would have made with 100% interest in those international deals will now only yield a percentage. Will KW be able to continue its momentum focusing on the US market?
Tried to raise $1.3 and ended up with $1.7....great demand and an expression of faith from the big pools of money. This allows for a much simpler structure for KW and lots of management fees, etc. Figure the 50% leverage and they are at $3.4 Billion of property....that is one big increase in their portfolio.
They've been active in Spain for several months now since buying a large asset management portfolio from one of the large banks and a second even bigger one later last year. Their pattern is to enter a market on the service side, build the business, develop contacts and a strong reputation, and then start cherry picking the best assets. They're already holding auctions in Spain, so they're on the ground, just give it time. Like you said they raised more capital because they see opportunites to put it to work.
assume that the offering is for more capital to invest in the talked about, but never confirmed, new venture in Europe- establishing a company there, maybe public, to invest in distressed real estate....primarily Spain at this point.