The Globe and Mail reports in its Tuesday, June 6, edition that Fairfax Financial Holdings is expecting double-digit returns from a deal to finance the construction of multifamily and student housing developments in the United States. The Globe's Jameson Berkow writes that Fairfax will spend $2-billion (U.S.) on a collection of 63 loans from Kennedy-Wilson Holdings. Kennedy-Wilson acquired the loans -- 70 per cent of which relate to multifamily or student residences, with the remainder a mix of industrial, hotel and life sciences office space -- from Pacific Western Bank last month. Fairfax will buy a 95-per-cent interest in the loans from Kennedy-Wilson, which have a total of $2.3-billion (U.S.) in balances owed. Despite an average annual interest rate of 8.6 per cent on the loans, Fairfax said it "expects the average annual return on the capital deployed by Fairfax in connection with the loans to exceed 10 per cent" once the discount the company received is taken into account. All the loans are secured by real property in the U.S., the company said, with an average loan-to-value ratio of 51 per cent. That means the properties have an average market value of nearly twice the total value of the loans.