Thomas Lyons 
PacWest, a troubled US bank, has agreed to sell a portfolio of property loans worth $2.6bn (€2.4bn) to Kennedy Wilson Holdings, a Beverly Hills-based landlord that is best known in Ireland as the owner of multiple upmarket apartments in Dublin and Cork. Kennedy Wilson, which also has residential investments in many other global locations, focuses on acquiring undervalued commercial and residential assets in select high-growth markets.
Following the property and banking crash of over a decade ago, the Californian property firm was quick off the mark to develop and purchase apartment blocks in the inner and outer suburbs of Dublin, for renting to professionals and staff of multinationals such as Google. Subsequently, the company bought groups of properties in the Dublin docklands and in Cork, including the Elysian.
The construction loans transaction with PacWest is expected to close in multiple tranches during the second quarter and early part of the third quarter of 2023. This agreement comes at a time when the shares of US regional banks have stabilised recently on hopes the worst is over for the banking crisis, but deteriorating loans in commercial real estate may pose a fresh risk with regulators stepping in to instruct banks to reduce exposure.
Kennedy Wilson’s acquisition of the property loans portfolio from PacWest demonstrates the company’s continued interest in Ireland’s property market. The firm’s focus on acquiring undervalued commercial and residential assets in select high-growth markets aligns with Ireland’s current property market situation.
The purchase of the property loans portfolio is expected to provide Kennedy Wilson with a solid investment opportunity, given the current state of Ireland’s property market. The company has a proven track record of investing in properties that have the potential to deliver high returns, and this acquisition is expected to be no different.
Kennedy Wilson’s success in Ireland’s property market can be attributed to the company’s ability to identify undervalued assets and invest in them at the right time. The company’s focus on acquiring properties in high-growth markets has also played a key role in its success.
The acquisition of the property loans portfolio from PacWest is expected to be a win-win situation for both companies. While Kennedy Wilson will benefit from the investment opportunity, PacWest will be able to reduce its exposure to commercial real estate loans, which have been deteriorating in recent times. The transaction is expected to close in multiple tranches during the second quarter and early part of the third quarter of 2023.
In conclusion, Kennedy Wilson’s acquisition of the property loans portfolio from PacWest is a positive development for both companies. The transaction is expected to provide Kennedy Wilson with a solid investment opportunity, while PacWest will be able to reduce its exposure to commercial real estate loans. Kennedy Wilson’s continued interest in Ireland’s property market is a reflection of the country’s potential for high returns, and the company’s ability to identify undervalued assets and invest in them at the right time.
