Fairfax Financial Takes 95% Stake in PacWest Construction Loan Portfolio

Toronto-based Fairfax Financial Holdings Limited will acquire an approximately 95% interest in the 74 real estate construction loans that Kennedy Wilson Holdings has agreed to acquire from PacWest Bancorp. Fairfax is also making a $200-million preferred equity investment in Beverly Hills-based Kennedy Wilson. 

The total purchase price for the loans is approximately US$2.1 billion, of which Fairfax will fund 95%, approximately $2.0 billion. The aggregate principal balance currently outstanding under the loans is approximately $2.3 billion.