PacWest Selling $2.6B Construction Loan Portfolio to Kennedy-Wilson
PacWest Bancorp said in a regulatory filing Monday that it had agreed to sell a portfolio of 74 real estate construction loans to Kennedy-Wilson Holdings with an outstanding principal balance of $2.6 billion. Bloomberg News reported that the portfolio was selling at a discounted price of $2.4 billion.
Kennedy-Wilson will assume all remaining future funding obligations under the acquired loans of approximately $2.7 billion, according to the SEC filing. The bank will also sell to Kennedy Wilson an additional six real estate construction loans with an aggregate principal balance of approximately $363 million.
The loan sale will close in multiple tranches during the second and third quarters, PacWest said.
PacWest held $4.6 billion in construction loans across the residential and commercial sectors, according to its latest quarterly earnings report. It also held $3.8 billion in commercial loans, $5.5 billion in multifamily loans and $15.4 billion in residential mortgages.
Pictured: PacWest headquarters at 9701 Wilshire Blvd. in Beverly Hills.