Deutsche Bank is understood to be the unnamed party that has entered a €2bn European strategic tie-up with US investment firm Kennedy Wilson.
The news comes after an announcement from the international real estate investment and services firm yesterday that it had entered a framework agreement with a “global financial institution” to invest in European property debt.
It is now widely understood to be an agreement with the German bank’s principal desk.
The firms are going to “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”.
KW will 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 it will be agreed on a case-by-case basis.
It is also working with Deutsche Bank to buy Lloyds’ Project Prince portfolio of Irish loans, and in partnership with the investment bank, is one of the bidders shortlisted for the Lloyds Project Harrogate portfolio of UK loans.
KW is also understood to have bid in the first round of the Allied Irish Bank’s £397m Project Pivot NPL portfolio.
Kennedy Wilson and Deutsche Bank won their first joint venture loan portfolio last autumn, buying the Bank of Ireland UK loan portfolio in two tranches.
bridget.oconnell@estatesgazette.com
