MORTGAGE LOANS AND NOTES PAYABLE

Mortgage loans at December 31, 2013 and 2012 consist of the following:



(Dollars in millions)		Carrying amount of mortgage notes as of December 31, ⁽¹⁾
Property Pledged as Collateral	Region	2013		2012
Notes receivable	United Kingdom	$	—	$	78.7
Commercial	Western U.S.	110.4		54.3
Multi-family property ⁽¹⁾	Western U.S.	261.0		97.6
Residential	Western U.S.	28.0		—
Commercial	Japan	2.4		—
Total mortgage loans payable		401.8		230.6

Notes Payable	Western U.S.	5.9		5.9
Total notes payable		5.9		5.9

Total mortgage and notes payable		$	407.7	$	236.5

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⁽¹⁾The mortgage loan payable balances include unamortized debt premiums. Debt premiums represent the excess of the fair value of debt over the principal value of debt assumed in various acquisitions and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The unamortized loan premium as of December 31, 2013 and 2012 was $5.3 million and $2.3 million

In December 2012, the Company acquired a loan secured by a shopping center and 107 residential units in the United Kingdom. At the time of acquisition, the Company invested $43.6 million of equity and borrowed $79.3 million in order to finance the transaction (see Note 3). As of December 31, 2012, both the note receivable and mortgage payable were consolidated on Kennedy Wilson's consolidated balance sheet. During 2013, the Company sold a 50% interest in an entity that held a the note receivable to an institutional investor. As a result of the sale and loss of control, Kennedy Wilson deconsolidated the investment and is accounting for it as an equity method investment.

During the year ended December 31, 2013, a first trust deed and supplemental mortgage loan were consolidated as part of the acquisition of an apartment building in northern California and four mortgage loans were consolidated as a result of Kennedy Wilson gaining control over existing investments in three retail centers and a hotel in the Western U.S. Additionally, during the year ended December 31, 2013, the acquisition of an apartment building in Salt Lake City, UT, an office building in Beverly Hills, CA, an apartment building in Liberty Lake, WA, three additional retail centers in the Western U.S. and a commercial property in Japan were partially financed with mortgages. See note 4 for more detail on the acquisitions.

The aggregate maturities of mortgage loans and notes payable subsequent to December 31, 2013 are as follows :



(Dollars in millions)
2014	$	38.7
2015	19.2
2016	43.8
2017	32.0
2018	22.3
Thereafter	246.4
	402.4
Debt premium	5.3
	$	407.7