Kennedy-Wilson Plans to Raise $23 Million

Kennedy-Wilson Inc. said it plans to raise $23.1 million by selling about a 25% stake in its Japanese unit and use the proceeds to make more purchases.

Kennedy-Wilson will sell 7,000 shares at $3,300 each in Kennedy-Wilson Japan Inc. The shares, being sold through a group of underwriters led by Nikko Salomon Smith Barney, will start trading Feb. 19 on Nasdaq Japan.

The expected sales price values the unit at about $93.4 million. Kennedy-Wilson will retain about 14,300 shares, or a 50% stake, in the unit, said Richard Mandel, president of the Beverly Hills-based real estate investment and advisory firm’s commercial property division.

When the company announced the plan to sell the shares in September, Mandel said the sale would let Kennedy-Wilson continue buying Japanese real estate assets and loans. Outside investors will retain about 25% of the unit, he said.

Japan has been trying to address a problem of soured real estate loans and investments. To help bring more capital into property markets, government officials made it possible for real estate investment funds to sell shares to the public.

Kennedy-Wilson and its Japanese partners have acquired about 22 office buildings worth about $400 million. They also have spent about $150 million buying bad loans with a face value of $2 billion.

The company’s shares rose 5 cents to $4.70 on Nasdaq.