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Kennedy Wilson, Fairfax Close on First Tranche of $5.7B PacWest Portfolio
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 of loans totaled $3.25 billion in total commitments and $1.8 billion in current principal balance and was acquired for $1.6 billion. An additional 12 loans totaling $800 million in commitments are expected to close on a rolling basis by the end of July.
Comprised of floating-rate construction loans, the loan portfolio includes loans located in Kennedy Wilson’s key Western U.S. markets and expands the company’s footprint into new regions across the Southern and Eastern U.S.
In its role as asset manager, Beverly Hills-based Kennedy Wilson will have ownership of 5% in the loan portfolio. The company is also finalizing arrangements with Pacific Western Bank for certain employees who originated and manage the portfolio to join the Kennedy Wilson team.
Photo of Kennedy Wilson headquarters courtesy of Liberty Glass & Metal.
- ◦Sale/Acquisition


