KKR Closes $4.3B Americas Opportunistic Real Estate Fund
Marks the firm’s third key CRE fund launch in less than three months.
KKR has announced the final closing of KKR Real Estate Partners Americas III, a $4.3 billion fund dedicated to opportunistic real estate investments primarily in the U.S.
In conjunction with dedicated funds raised in Asia and Europe over the last 12 months, KKR’s global opportunistic real estate equity strategies oversee more than $8 billion across three active regional funds.
REPA III is the successor fund to KKR Real Estate Partners Americas II, which completed fundraising in January 2018 with $2 billion in capital commitments.
The fund received strong backing from a diverse group of new and existing global investors, including public pensions, sovereign wealth funds, insurance companies, family offices, high net worth individual investors and other institutional investors. As of September 2021, REPA III had already committed more than $1 billion of capital.
“Through our thematic approach and connectivity to KKR’s broad investment platform, we have been able to identify high-conviction investment themes that we have invested behind in scale to generate attractive risk adjusted returns for our investors. We plan to continue this approach as we identify investment opportunities for REPA III,” said Justin Pattner, Head of Real Estate Equity in the Americas for KKR, in prepared remarks.
KKR Making Inroads into CRE
It’s the latest real estate specific fund established by KKR, lately, which is making inroads in commercial real estate in general. It launched one fund in medical office and another in net lease.
In September, KKR announced that it and Cornerstone had entered into a joint venture to acquire and develop a portfolio of healthcare properties across the United States, with plans to acquire more than $1 billion in assets over the next few years. KKR and Cornerstone have seeded the portfolio with the recapitalization of 25 healthcare properties owned by Cornerstone.
In August, KKR launched a platform to invest in a diversified portfolio of triple-net lease real estate. Called Strategic Lease Partners, the platform seeks to acquire over $3 billion in assets. The company has recruited net lease veterans Andrés Dallal and Joseph Mastrocola, who are joining as partners.