On a couple of sites over the years, I have been lucky enough to observe close proximity breeding, of both Peregrines and Kestrels to each other.
Like Feral Pigeons, Kestrels will not move from a traditional nest site just because Peregrines are present closely, it can obviously be dangerous/hazardous for the Kestrels as I have recorded them, along with Sparrowhawks at a few sites as prey.
Battersea Power Station was where I first came across both species nesting within 40 metres of each other in an urban scenario ,since then, although not common, I have seen it on at least 4 other Peregrine sites that I monitor.
Its quite obvious the adult Kestrels are aware, plenty of alarm calls every time a juvenile peregrine flew near, also some mobbing but thankfully no targeting, although at times all 3 Kestrel young appeared to be pushing their luck in front and close to the adult Peregrines.