Global property giant behind Dublin and Cork apartments buys US bank loans

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. They own 470 apartments at Coopers Cross in Dublin. 

Troubled US bank PacWest has agreed to sell a portfolio of property loans worth $2.6bn (€2.4bn) to Kennedy Wilson Holdings, the 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.

In Ireland, it was quick off the mark soon after the property and banking crash of over a decade ago 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.

The Californian property firm subsequently 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. 

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.

• Additional reporting by Reuters