Kennedy Wilson Acquires First Tranche of $5.7 Billion Loan Portfolio From Pacific Western Bank - Kennedy-

Off-market transaction will expand Kennedy Wilson's national footprint and debt investment platform by initially adding over $2 billion to fee-bearing capital

Representing one of the first significant real estate debt transactions in this market cycle, global real estate investment company Kennedy Wilson KW has closed on the initial tranche of loans as part of a $5.7 billion loan portfolio acquisition from Pacific Western Bank. The first tranche of loans acquired by Kennedy Wilson and certain controlled affiliates of Fairfax Financial Holdings Limited (collectively, "Fairfax") FFH, a long-time partner of Kennedy Wilson, totaled $3.25 billion in total commitments and $1.8 billion in current principal balance. The first tranche of loans was acquired for $1.6 billion. An additional 12 loans totaling $800 million in commitments are expected to close on a rolling basis by no later than the end of July (collectively, "Loan Portfolio").

The Loan Portfolio is comprised of floating-rate construction loans that carry a weighted-average interest rate of approximately 8.6%, with approximately 80% of the portfolio secured by high-quality multifamily and student housing properties and the remainder including mainly industrial, hotel, and life science assets. The Loan Portfolio consists of 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 United States.