Banco Popular Espanol SA agreed to sell the management of its real estate to Varde Partners and Kennedy Wilson Holdings Inc. as Spanish banks seek specialists to handle assets that piled up in a property crash.
Kennedy-Wilson Holdings Inc., a real estate investment company, and Varde bought eight shopping centers in the U.K. out of administration for 250 million pounds ($390 million), adding to its European assets.
Kennedy-Wilson Holdings Inc., the U.S. real estate company buying a U.K. loan portfolio from Bank of Ireland Plc, expects Europe to become the largest part of its business in the next five years as lenders in the region sell assets, Chief Executive Officer William McMorrow said.
Dublin, where commercial property values dropped 65 percent during Western Europe’s worst real estate crash, should be a feasting ground for distressed investors. Instead, frustrated buyers are competing for a dearth of properties that’s inflating prices and discouraging other funds from entering the market.
Kennedy-Wilson Holdings Inc., a Beverly Hills, California-based real estate investor, agreed to buy 29 office and industrial buildings in the U.K. for about $100 million, according to a person with knowledge of the talks.
U.S. investment firms Lone Star Funds and Kennedy-Wilson Holdings Inc. are among remaining bidders for parts of about 2 billion euros ($2.6 billion) of mainly Irish real estate loans Lloyds Banking Group Plc is selling, two people with knowledge of the matter said.