Kennedy Wilson
KW,
said Friday it closed on the initial tranche of loans as part of a $5.7 billion loan portfolio acquisition from Pacific Western Bank
PACW,
just days after it said it would sell a 95% stake in the loans to Fairfax Financial holdings Ltd.
FFH,
PacWest CEO Paul Taylor said the deal “will improve our liquidity and capital as we continue to implement our announced strategy to return our focus to relationship-based community banking,” The first tranche of loans acquired for $1.6 billion by Kennedy Wilson and Fairfax Financial totaled $3.25 billion in total commitments and $1.8 billion in current principal balance. The company plans to close an additional 12 loans totaling $800 million in commitments on a rolling basis by no later than the end of July. Floating-rate construction loans with an average interest rate of approximately 8.6% make up the purchase. About 80% of the portfolio is secured by multifamily and student housing properties and the remainder including mainly industrial, hotel, and life science assets. “We are pleased to expand our debt portfolio in such a significant way, which strategically positions our private credit platform for substantial future growth,” said Matt Windisch, executive vice resident at Kennedy Wilson. PacWest stock is up 0.7% in premarket trades. Kennedy Wilson stock is up 8.9% in 2023, compared to an 11.8% gain by the S&P 500
SPX,
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