KKR acquires majority stake in French private real estate company

KKR acquires majority stake in French private real estate company

Global investment firm KKR has acquired a strategic stake in Etche from Groupe BMF and co-founders. Etche is a private real estate company, founded in 2010 by the late Jean-Pierre Raynal and Léon Baruc, that owns and operates a portfolio of over 120 assets (€400m GAV) across France in the logistics, light industrial and office sectors.

The transaction will further expand KKR’s real estate presence and capabilities in France, with an increased focus on driving growth in the industrial and logistics (I&L) sector through Etche, said the company in a statement.

KKR has a significant recent track record in the I&L real estate market across Europe, having acquired c.800,000 sqm of I&L space over the last 24 months across France, the Netherlands, Italy, Spain and Ireland. The investment in Etche was made through a European real estate fund managed by KKR.

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“KKR and Etche have substantial experience having successfully invested together in the French logistics and light industrial sectors for the past 6 years. This transaction comes as an exciting next step in our relationship and reinforces KKR’s trust in the Etche team. We are delighted to invest in a high quality, diversified portfolio geared towards the I&L sectors that will benefit from structural tailwinds and strong market dynamics. As we navigate the challenges of the current market environment, we are excited to be able to leverage the expertise of the Etche team to expand the platform, and continue the work initiated by Jean-Pierre and Léon more than 10 years ago,” said Mai-Lan de Marcilly, Director, European Real Estate at KKR.

“This transaction with KKR is not only a great opportunity for Etche but also a recognition of the quality of work delivered by our team. It will give us the chance to broaden our horizons. Etche will remain a nimble company with the financial strength and expertise of a major one. This deal began while Jean-Pierre Raynal was still amongst us and he would be delighted with this outcome,” said Léon Baruc, CEO of Etche.

KKR was advised by Gide, Etude Wargny Katz, Norton Rose and Accuracy. Etche was advised by Cabinet Kramer Levin, Etude Durant des Aulnois and CE2C Expertise & Conseil. Groupe BMF was advised by Bredin Prat.