October 24, 2011 / 12:37 PM / 7 years ago

UPDATE 2-Kennedy Wilson to buy Bank of Ireland loan portfolio

* Deal for $1.8 billion

* Pays $1.4 billion, rest by November

* Co says after the buy its AUM increases to $12 bln (Adds background; updates stock movement)

Oct 24 (Reuters) - Kennedy Wilson Holdings Inc , a real estate investment company, said it agreed to buy a loan portfolio from Bank of Ireland for $1.8 billion with its institutional partners.

In June, Kennedy Wilson had acquired Bank of Ireland’s real estate investment management unit, which had about $2.3 billion of assets under management.

The latest deal will boost Kennedy Wilson’s assets under management to $12 billion.

Under the terms, the company has paid $1.4 billion for the portfolio and it will pay the rest by the end of next month.

The portfolio assets are secured by “high quality” London-based office, multifamily and retail properties, Kennedy Wilson said in a statement.

In July, the Irish government halved its stake in Bank of Ireland after a successful rights issue and a 1.1 billion euro ($1.58 billion) private investment allowed the government to avoid full nationalisation of the sector.

Canada’s Fairfax Financial Holdings , a Toronto-based insurer and investment company, Wilbur Ross’ New York buyout firm WL Ross & Co, Fidelity Investments, rival investment firm Capital Group and Kennedy Wilson were named as the investors by Bank of Ireland.

Shares of Kennedy Wilson were up 2 percent at $11.49 in Monday morning trade on the New York Stock Exchange. (Reporting by Tanya Agrawal in Bangalore; Editing by Maju Samuel)

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