Kennedy Wilson and Fairfax Financial Holdings Ltd. have closed on the initial tranche of loans as part of a $5.7 billion portfolio acquisition from Pacific Western Bank. The first tranche totaled $3.25 billion in total commitments and had a current principal balance of $1.8 billion, which was acquired for approximately $1.6 billion USD in cash consideration paid at closing by Kennedy Wilson and Fairfax Financial Holdings Ltd., respectively, with an additional 12 loans totaling around 800 million expected to close on a rolling basis by the end of July 2020 .
The loan portfolio is comprised mainly floating-rate construction loans located across key Western U..S markets as well as new regions across the Southern and Eastern United States, expanding Kennedy Wilson’s footprint into these areas while also providing ownership interest through their role as asset manager – holding 5% equity stake in this loan portfolio upon completion . Additionally , arrangements are being finalized with Pacific Western Bank for certain employees who originated or manage this particular portfolio to join Kennedy Wilson’s team post-closing .
A photo taken at Liberty Glass & Metal captures an image outside the headquarters building belonging to Beverly Hills based real estate investment firm , Kennedy Wilson .
This article originally appeared on Connect CRE
