BEVERLY HILLS, CA & FORT WASHINGTON, PA — Kennedy Wilson (NYSE: KW) will acquire Toll Brothers’ (NYSE: TOL) Apartment Living platform, including its in-house development team and portfolio interests, in a $347 million transaction that significantly expands Kennedy Wilson’s presence in rental housing. The deal is expected to close in October 2025, subject to customary conditions.
The agreement includes Toll Brothers’ general partner interests in 18 stabilized and in-development apartment and student housing properties, representing $2.2 billion in assets under management (AUM). Kennedy Wilson will also take over a pipeline of 29 development sites with a potential capitalization of $3.6 billion once completed. Additionally, Kennedy Wilson will assume management of 20 properties valued at $3.0 billion AUM that Toll Brothers plans to divest over time.
As part of the transaction, Kennedy Wilson will bring on the Toll Brothers Apartment Living executive and development teams, integrating their expertise into its investment management business. The move will expand Kennedy Wilson’s rental housing platform to more than 80,000 units owned, financed, or managed.
“We are thrilled to welcome the best-in-class team at Toll Brothers Apartment Living to Kennedy Wilson and to further accelerate the growth of our investment management business and multifamily development capabilities at a time when the country is in true need of new, high-quality housing,” said William McMorrow, Chairman and CEO of Kennedy Wilson.
Toll Brothers, the nation’s largest builder of luxury homes, described the sale as a step toward focusing on its core business while adopting a more asset-light strategy. “This transaction will unlock significant capital for our stockholders, while allowing us to focus on our core homebuilding business,” said Douglas C. Yearley, Jr., Chairman and CEO of Toll Brothers.
The agreement also establishes a strategic relationship between the two companies. Kennedy Wilson and Toll Brothers will share investment opportunities, with Kennedy Wilson referring for-sale housing projects and Toll Brothers directing rental housing opportunities back to Kennedy Wilson.
Kennedy Wilson will contribute about $90 million of its own capital into the acquired portfolio, with the balance funded through existing partners. J.P. Morgan Securities LLC advised Kennedy Wilson, while Goldman Sachs & Co. LLC and Vestra Advisors advised Toll Brothers.
The deal positions Kennedy Wilson as a leading national platform in rental housing, combining development, acquisitions, asset management, and credit capabilities, while providing Toll Brothers with liquidity to sharpen its focus on luxury homebuilding.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.