Bank of Ireland has completed the sale of its $1.8bn UK property loan book to Kennedy Wilson, one of its shareholders.

The loans are the property loans in the UK which were not transferred to the Irish National Asset Management Agency.

It marks the largest UK property loan sale to be completed so far in this cycle.

The deal will see Kennedy Wilson take on $1.4bn of loans now, and a further $400m at the end of November.

“This is a landmark deal for Kennedy Wilson,” William McMorrow, chairman and chief executive of Kennedy Wilson said. “Under the leadership of Mary Ricks, our new team in Europe played a significant role in this success and the closing adds to our already strong base of business in Europe.”

Mary Ricks, executive vice chair of Kennedy Wilson said: “The Kennedy Wilson team did an excellent job on this complex transaction, and we believe that this closing will serve as a base for the company’s further expansion in Europe.”

In June, Kennedy Wilson announced the acquisition of Bank of Ireland Real Estate Investment Management (BOI REIM), a business that represents approximately $2.3 billion of assets under management. In 2010 and 2011, the company, together with its institutional partners, has acquired approximately $5 billion of real estate and real estate secured debt through joint venture and consolidated investments.