LOANS

The following table summarizes KW Group's investment in loans at September 30, 2014 and December 31, 2013:



	September 30,		December 31,
(Dollars in millions)	2014		2013
Loans	$	266.7	$	52.7
Loans — related parties	—		4.1
Total loans	$	266.7	$	56.8

During the first quarter of 2014, Kennedy Wilson acquired the loans secured by a five-star hotel located in Dublin, Ireland for $152.4 million. During the third quarter of 2014, Kennedy Wilson converted the loans into a 100% direct ownership interest in the hotel. See note 4 for further discussion. During the quarter ended March 31, 2014, Kennedy Wilson foreclosed on a 133,000 square foot retail center and an adjacent 2.4 acre vacant lot in Van Nuys, CA that had a loan balance of $30.4 million, and converted it into real estate.

During the second quarter of 2014, KWE acquired five real estate loans under receivership which are secured against five properties located across England for $156.3 million. As of September 30, 2014, due to foreign currency fluctuations, the loans had a balance of $152.8 million. Also during the second quarter of 2014, KWE acquired subordinated notes secured by 20 commercial properties located throughout England and Scotland for $62.2 million. The subordinated notes were paid off in the third quarter. See note 4 for further discussion.

During the third quarter of 2014, KWE acquired the loans secured by 13 properties throughout Ireland for $97.0 million. Also during the third quarter of 2014, loans that Kennedy Wilson held on a building in Maui, HI and two related-party funds were paid off.

Loan income

KW Group recognized interest income on loans of $5.7 million and $11.2 million during the three and nine months ended September 30, 2014, respectively, and $0.5 million and $1.3 million during the three and nine months ended September 30, 2013, respectively.