Investment Firm Completes Sales Worth $560 Million

KKR has announced that it has sold over 5 million sq ft of industrial warehouse and distribution properties

KKR, a leading global investment firm, announced that it has completed the sale of over 5 million sq ft of industrial warehouse and distribution properties for a total aggregate value of over $560 million. The dispositions were completed through five discrete transactions with five separate buyers. The fifth and final sale closed on September 29.

The sales, primarily consisting of assets in KKR’s Real Estate Partners Americas II fund, included over 50 industrial buildings located in high-growth, infill markets across Atlanta, Dallas-Fort Worth, Chicago, the Lehigh Valley and Central Pennsylvania. Since 2018, across its investment strategies in the U.S., KKR has acquired over 60 million SF of logistics assets totalling approximately $8.0 billion of aggregate value. Including these five sales, KKR has sold approximately 21 million SF since 2021 and currently owns over 40 million SF of industrial real estate in major metropolitan areas.

“Our strong focus on asset quality and market selection gives us flexibility to deliver results for our investors in different market conditions, whether through the sales of large portfolios or individual dispositions of well-bought properties,” said Ben Brudney, a Director at KKR overseeing US industrial real estate investments. “We continue to selectively acquire logistics properties in growth markets and our existing portfolio continues to benefit from high occupancy and embedded rent growth potential.”

“Industrial real estate is the largest exposure across our US opportunistic and core plus real estate strategies, and we have built a dedicated investment and operating platform focused on this sector that enables us to own great properties at scale,” said Roger Morales, Partner and Head of Real Estate Acquisitions in the Americas at KKR. “These sales demonstrate the attractive bid that exists for quality assets in supply-constrained locations.”

KKR’s global real estate business invests in high-quality, thematic real estate through a full range of scaled equity and debt strategies. Managing over $64 billion in assets as of June 30, 2023, KKR’s approximately 150 dedicated real estate investment and asset management professionals across 17 offices worldwide apply the capabilities and knowledge of KKR’s global platform to deliver solutions for clients and investors.