Loan Purchases and Originations

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

LOAN PURCHASES AND ORIGINATIONS

LOAN PURCHASES AND ORIGINATIONS

KW Group's investment in loan purchases and originations was $421.3 million and $313.4 million at September 30, 2015 and December 31, 2014, respectively.

During the third quarter, KWE converted loans into a 100% direct ownership in a retail center located in Cavan, Ireland for $11.7 million. Additionally, KWH fully resolved a $5.7 million loan.

During the second quarter of 2015, KWH originated a loan to an existing joint venture in an amount equal to approximately $38.7 million. With the loan, the joint venture purchased a note secured by a resort in Kona, Hawaii, for approximately $38.7 million. Additionally, during the second quarter of 2015, KWE acquired a nonperforming loan secured by a residential property in London, England, for $108.4 million.

During the fourth quarter of 2014, KWE acquired the loans secured by an office building in Dublin, Ireland for $53.0 million. During the first quarter of 2015, KWE converted the loans into a 100% direct ownership interest in the office building. Additionally, during the first quarter of 2015, KWE acquired eight loans secured by eight hotels located throughout the United Kingdom for $95.2 million.

KW Group recognized interest income on loans of $4.6 million and $13.4 million during the three and nine months ended September 30, 2015, respectively, and $5.7 million and $11.7 million during three and nine months ended September 30, 2014, respectively.