KKR closes US $ 4.3 billion real estate fund – Commercial Observer

A decade after developing its real estate strategy, KKR has closed its third opportunistic fund focused on investment opportunities in the United States, the company announced yesterday.

The $ 4.3 billion KKR Real Estate Partners Americas III (REPA III) is the successor to another $ 2 billion fund, for which fundraising was completed in January 2018. In September 2021, KKR had committed $ 1 billion of capital for the fund’s investments.

“We take a thematic approach to real estate investing because real estate is a cyclical asset class. So there are times when you want to invest in certain markets and asset classes and other times when you want to invest in different markets and asset classes, ”Justin Pattner, Head of Real Estate Equities, told Commercial Observer. KKR in the Americas. “What allows us to choose, or focus, where we want to focus is the fact that we have access to differentiated information because we are within KKR – a large global asset manager – where we are culturally and economically motivated to work with our colleagues who invest in non-real estate companies.

Pattner said REPA III will focus on all classes of commercial real estate assets, particularly industrial, multi-family and self-storage assets. He said the fund would also focus on targeted aspects of the office market such as life sciences and Class A properties in the Sun Belt or western regions, as well as hotels with a travel focus. of approval.

The new fund was launched 10 years after KKR initially created a dedicated real estate team in 2011, which has since grown to include around 130 investment professionals in equity and credit businesses. in 12 offices. The team is located in nine countries and oversees $ 33 billion in assets under management in real estate strategies globally, as of June 30, 2021.

“As we mark this important milestone in our business, 10 years after launching a dedicated real estate strategy, our real estate platform has evolved to include multiple pools of capital with the ability to conduct large-scale transactions on the market. ‘The entire spectrum of equity and credit risk,’ Ralph Rosenberg, global head of KKR’s real estate platform, said in a statement. “We believe that our platform offers us tangible benefits that translate into differentiated results for our collective investors through our multiple products. “

Andrew Coen can be contacted at [email protected]

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