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.
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?
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.