KKR closes second European real estate fund at $2.2bn

KKR closes second European real estate fund at $2.2bn

KKR has announced the final closing of KKR Real Estate Partners Europe II (REPE II), its US$2.2 billion value-add and opportunistic real estate investment fund in Western Europe.

REPE II is the successor fund to KKR Real Estate Partners Europe (REPE I), its first European real estate fund, which closed in June 2016 with $739 million in capital commitments.

”As of June 30, 2021, REPE II had already committed more than $700 million of capital principally across logistics and residential investment opportunities” said KKR in a statement.

The fund will target sub-sectors with attractive structural dynamics, including logistics, residential, student housing, hospitality and high-quality offices.

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“We continue to believe that Europe represents an attractive investing environment for real estate,” said Ralph Rosenberg, Partner and Global Head of KKR Real Estate. “Our real estate strategy is closely integrated with the wider KKR platform, our multi-disciplinary investment expertise and is underpinned by our strong global track record. This breadth means we can be a differentiated partner to entrepreneurs, developers and management teams, and we are well-positioned to execute on the opportunities we see in Europe.”

Guillaume Cassou, Partner and Head of European Real Estate at KKR, said: “REPE II’s close is a very exciting milestone for our global strategy and the scaling of our European platform. The evolution of the real estate sector is creating a strong pipeline of opportunities that are well-suited to KKR’s flexible investment approach. The Fund is off to a strong start with significant exposure to the logistics and residential sectors, and we are well-positioned to create a diverse portfolio of investments capable of delivering attractive returns to our investors.”

“We are pleased to have the backing of many investors from around the world who share in our enthusiasm for REPE II, helping us surpass our initial target for the fundraise – a testament to our Real Estate expertise, our global investing platform and the team’s track record,” said Jon Fiorello, Head of KKR’s Real Estate Strategies Team. “We appreciate the confidence that our investors have placed in our strategy and team.”