US investor Kennedy Wilson has announced plans to invest up to €2bn in European property loans.
A statement from the Beverly Hills-headquartered firm announced a “new framework” with an unnamed “global financial institution”.
It said the firms would “target the acquisition of €2bn [$2.5bn] of performing, sub-performing and non-performing loans secured by commercial and residential real estate in Europe, with a focus on the United Kingdom and Ireland”.
It added that KW would potentially act as the asset manager and/or master servicer in respect of assets acquired under the framework and would co-invest with its partner along with other potential investors.
The framework does not create a binding legal agreement between the parties, and the structure of any transaction under the framework will be agreed on a case-by-case basis.
In March KW formed a €278m partnership with Fairfax Financial to invest in loans and direct property in the UK and Ireland, with Fairfax providing a €250m capital commitment alongside a 10% co-investment from the US investment manager.
It is also working with Deutsche Bank to buy Lloyds’ Project Prince portfolio of Irish loans and is shortlisted in partnership with the investment bank on the shortlist for the Lloyds Project Harrogate portfolio of UK loans.
Mary Ricks, president and chief executive of Kennedy Wilson Europe, said: “We believe the eurozone banking sector will continue to present many attractive opportunities in the property space, and Kennedy Wilson’s operating platforms in London and Dublin will enable us to identify opportunities for the framework.”
bridget.oconnell@estatesgazette.com
