US firm targets Europe with BoI acquisition

US property investment and services firm Kennedy Wilson has made Ireland its entry point to the European market, by taking control of Bank of Ireland’s property management arm for a nominal sum.

The Los Angeles-headquartered company will take over the day-to-day management of Bank of Ireland Real Estate Investment Management, adding €1.6bn worth of commercial property assets to its management portfolio, in the process.

Bank of Ireland, which also yesterday announced the completion of its disposal of BoI Securities Services to the US-based Northern Trust Corporation, will still have overall control over the private banking client property portfolio, but added that the money changing hands is largely immaterial to its capital raising efforts.

The deal gives Kennedy Wilson — which already has a strong presence outside of the US, in Japan, where it expanded into in the 1990s — a first foothold in Europe.

The New York Stock Exchange-quoted company’s chairman and chief executive, William McMorrow, said it has already identified opportunities for growth throughout Europe, “including an initial focus on Ireland”.

“We have a successful history of building long-term business operations in new geographic markets and a reputation for finding value-added investment opportunities.

“We have worked with financial institutions, through all real estate cycles, in Japan and the US, and we look forward to working with the European banks and financial institutions,” he added.

Kennedy Wilson will operate from both Dublin and London and will be headed by existing Bank of Ireland Real Estate Investment Management managing director, Peter Collins.

All existing staff will also be retained.

Commenting on the outsourcing/acquisition, Mr Collins said: “Bank of Ireland Real Estate Investment Management has developed a significant investment management platform over recent years, including a very strong team who will be part of the new business. The acquisition... gives us access to additional international expertise and capital sources that will allow us to develop the business further.”