Kennedy Wilson, Deutsche JV acquires Irish loan portfolio

The purchase marks the first investment made on behalf of the partnership, which recently was established to target €2 billion in European real estate loans.

Kennedy Wilson and Deutsche Bank have made their first purchase on behalf of their new partnership to buy European real estate loans. 

According to a statement from Kennedy Wilson, the Beverly Hills, California-based real estate investment and services firm and Deutsche Bank’s European commercial real estate group have acquired a loan portfolio with an unpaid principal balance of €361 million ($449 million). Though representatives from Kennedy Wilson and Deutsche Bank declined to disclose the seller, market sources have confirmed with PERE that the partnership bought the portfolio from the former Bank of Scotland Ireland.

Mary Ricks, president and chief executive officer of Kennedy Wilson Europe, said in the statement: “This acquisition is a great win for the company and our partner and is a reflection of our robust track record, as well as the strength of our local presence in Ireland.”

The transaction marks the first deal on behalf of the partnership, the goal of which is to acquire €2 billion of commercial and residential real estate loans in Europe, with a focus on the UK and Ireland. The partnership initially was announced last month. 

“We are seeing signs of recovery in the Irish property market,” added Ricks. “Investor confidence is returning, and there is a good macroeconomic recovery story in Ireland that is starting to play out.”

The properties backing the loan portfolio are predominantly commercial real estate assets across a mix of property types, with the majority located in Dublin. Consensual workouts are in progress with respect to a majority of the assets. Gibson Dunn and William Fry advised on the acquisition.