The off-market transaction will add over $2 billion to fee-bearing capital and boost KW's debt investment platform.

The acquired portfolio comprises loans based in KW's key Western U.S. markets and expands its footprint across the Southern and Eastern U.S.

The first tranche of loans includes $3.25 billion in total commitments and $1.8 billion in current principal balance.  

Apart from this, an additional 12 loans totalling $800 million in commitments is expected to close on a rolling basis by the end of July.

The $5.7 billion in loans arranged by Kennedy Wilson comprise $4.1 billion worth Loan Portfolio, $1.2 billion of loan commitments to be bought by a third party ($970 million already acquired), and loans of $400 million, subject to further due diligence.

As an asset manager, Kennedy Wilson will earn customary fees and own 5% of the loan portfolio. 

Price Action: KW shares closed higher by 0.82% at $17.13 on Thursday.