KKR Closes $4.3B Opportunistic Real Estate Fund

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KKR has reached the final closing of its Real Estate Partners Americas III, a $4.3 billion fund focused on opportunistic real estate investments, predominantly in the U.S., the global investment firm announced Monday.

In conjunction with dedicated funds raised in Asia and Europe over the past 12 months, KKR’s global opportunistic real estate equity strategies oversee more than $8 billion across three active regional funds.

The fund reportedly 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 individuals and other institutional investors. As of the end of last month, REPA III had already committed more than $1 billion of capital.

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Chris Lee, head of Real Estate Americas for KKR, said in a prepared statement that REPA III is more than double the size of the firm’s predecessor fund, which demonstrates the investors’ enthusiasm for the current opportunity set in the Americas.

KKR first established its dedicated real estate team and strategy in 2011. Since then, this team has grown to about 130 investment professionals spanning the equity and credit business across 12 offices in nine countries, and overseeing $33 billion of assets under management globally, as of mid-2021.

As of 2021, added Ralph Rosenberg, global head of KKR Real Estate, “our real estate platform has evolved to include multiple pools of capital with the ability to transact in scale across the equity and credit risk spectrum.”

KKR did not respond to Commercial Property Executive’s request for additional information.

Ongoing acquisitions

REPA III is the successor fund to KKR Real Estate Partners Americas II, which completed fund-raising in January 2018 with $2.0 billion in capital commitments.

One of the earlier fund’s more recent acquisitions was the eight-building, 688,000-square-foot Riata Corporate Park in Austin, Texas. The sellers in the $258 million deal were Accesso and Partners Group.