Finance

PacWest to Sell $2.6 Billion Real Estate Loans at Discount

Kennedy-Wilson to buy portfolio of 74 loans, assume funding
PacWest is seeking to boost liquidity on regional bank turmoil

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By Sam Nagarajan and Daniel Taub

May 22, 2023 at 10:49 AM UTC

Updated on

May 22, 2023 at 1:17 PM UTC

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PacWest Bancorp, one of the US lenders engulfed in the regional banking turmoil, agreed to sell a $2.6 billion portfolio of real estate construction loans amid efforts to shore up liquidity.

Kennedy-Wilson Holdings Inc. will purchase the group of 74 loans at discounted price of about $2.4 billion, it said in a statement Monday. The buyer will also assume all future funding obligations under the loans of about $2.7 billion, it said.