Kennedy Wilson is lining up its first debt deal with the funds it raised from its £1bn IPO.
The US property investor is understood to be in exclusive negotiations to buy a slice of the £415m debt backing Fordgate’s Fox portfolio from French bank Natixis.
It is up against bids from private equity players vying to buy the underwater B-loan, which was originally valued at £136m. It was up for sale for an indicative price of around £20m.
One specialist said: “If Kennedy Wilson secures the B-loan, it will be in pole position to take over the underlying asset.”
It could do this by asserting the right to pay off investors in the £262m securitised senior loan to take the senior lending position. It could then enforce on the loan to take control of the 21-strong UK regional portfolio, owned by Moises and Mendi Gertner’s private property company Fordgate.
The assets were valued at £248.5m as at November 2013.
At the same time as Natixis has been negotiating the sale of its debt, investors have been making approaches to special servicer Mount Street with proposals to take control of the assets.
It is understood that Fortress had approached the Gertners to mount a joint bid before making an independent approach.
Other investors including Oaktree Capital Management in partnership with Highcross; Apollo; and Angelo Gordon in partnership with Valad; are also thought to have made offers.
An update is expected from Mount Street imminently following the expiry of the latest standstill period on 8 April.
In February, Kennedy Wilson Europe Real Estate listed on the LSE, raising £1bn, to plough into real estate and real estate loans in the UK, Ireland and Spain. It seeded the listed vehicle with the 14-strong Tiger portfolio and the 26-strong Artemis portfolio. Fox would be its first debt buy, however.
bridget.o’connell@estatesgazette.com
