PacWest Bancorp announced in a regulatory filing Monday that it had agreed to sell a portfolio of 74 real estate construction loans with an outstanding principal balance of $2.6 billion to Kennedy-Wilson Holdings at a discounted price of $2.4 billion. The bank will also transfer six additional real estate construction loans with an aggregate principal balance of approximately $363 million, according to the SEC filing.
Kennedy-Wilson has assumed all remaining future funding obligations under the acquired loans totaling approximately $2.7 billion and the loan sale is expected to close in multiple tranches during the second and third quarters, as per PacWest’s statement.
The bank held around $4.6 billion in construction loans across residential and commercial sectors as reported by its latest quarterly earnings report along with other assets such as commercial mortgages ($3
