KKR Raises Billions for Realty Fund across Europe
KKR & Co. has raised $2.2 billion for a new real estate fund that will seek investment opportunities throughout Europe as lockdown measures are eased across the continent. The private equity firm’s second dedicated property fund has already invested more than $700 million in residential housing and warehouses, two areas that have proved resilient to the pandemic. It will also seek to buy hospitality properties hurt by restrictions and build offices fit for the post-Covid workforce.
“We continue to believe that Europe represents an attractive investing environment for real estate,” Ralph Rosenberg, partner and global head of KKR Real Estate.
The KKR Real Estate Partners Europe II fund will aim for so-called value-add investments that typically involve buying buildings that are partially vacant or in need of modernizing or redeveloping. The New York-based firm’s first dedicated European real estate vehicle raised $739 million in 2016. The fund has delivered an interim net initial rate of return of more than 10%, according to filings.