Pacific Western Bank (PacWest) has completed the sale of the first tranche of a $5.7bn (€5.3bn) US real estate loan portfolio to Kennedy Wilson and Cain International.
The $5.7bn loans include a $4.1bn loan portfolio, $1.2bn of loan commitments to be purchased by Cain International, and $400m of loans subject to further due diligence.
Kennedy Wilson and affiliates of Fairfax Financial have acquired the first tranche of the loan portfolio for $1.6bn and expect to acquire an additional 12 loans before the end of next month.
The loan portfolio being acquired by Kennedy Wilson and Fairfax Financial has an aggregate current principal balance of $1.8bn.
The loan portfolio comprises floating-rate construction loans secured by high-quality multifamily and student housing properties and the remainder includes mainly industrial, hotel, and life science assets.
William McMorrow, chairman and CEO at Kennedy Wilson, said: “The acquisition of this loan portfolio from Pacific Western Bank highlights Kennedy Wilson’s historic ability to find off-market transactions during periods of uncertainty, move with speed, and build on our successful track record of investing through all real estate cycles.”
Separately, Cain International has partnered with Security Benefit Life Insurance Company to acquire the $1.2bn portfolio real estate construction loans from PacWest.
The acquired portfolio comprises 10 loans in New York, with a focus on multifamily and student housing developments. The aggregate principal balance of the portfolio is approximately $500m.
Jonathan Goldstein, CEO and co-founder of Cain International, said the deal marks a “significant moment of growth for Cain’s US lending platform and underpins our belief that high-quality projects, delivered by high-quality developers, will continue to thrive amidst transitory headwinds”.
Matthew Rosenfeld, managing director and head of US debt at Cain International, said: “This transaction encapsulates the thoughtful and decisive approach with which we’ve built our presence in the US capital markets.
“Partnering with outstanding sponsors to deliver best-in-class assets has been, and will remain, the foundation of our lending strategy as we continue to grow.”
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