KKR Real Estate Select Trust Completes 4 Debt Investments, as KKR Expands Logistics Business

Published on 05/10/2022

KKR Real Estate Select Trust Inc. (KREST) ​​has completed four real estate debt investments with a combined value of US$234 million. The transactions bring the Fund’s portfolio allocation to income-oriented real estate debt investments to approximately 28% as of March 31, 2022. The new debt investments are expected to have a weighted average yield of approximately 8.6% as of during the first year of detention. Debt investments are primarily variable rate and backed by commercial real estate. Underlying exhibits include: The Old Post Office, a newly redeveloped iconic commercial office building in Chicago; the American Copper Buildings, a pair of luxury multi-family towers in New York; and two major select service US hotel portfolios with high-quality sponsorship. The Old Post Office is an office building designated as a Chicago Landmark that completed a major redevelopment in 2021. The American Copper Buildings are Class A multifamily towers connected by a three-story skybridge and outdoor space private, whose construction was completed in 2018. Real estate debt is one of KREST’s three main investment strategies, alongside equity investments in stabilized real estate and prime single-tenant properties. KREST targets private debt opportunities, including real estate loans, preferred stocks and commercial mortgage-backed securities (CMBS), with an emphasis on attractive yield supported by underlying properties with cash flows. cash constants and defensive. KKR’s mortgage lending business manages senior loan, mezzanine debt and CMBS strategies. KKR’s global real estate franchise owns or lends more than $172 billion in real estate assets as of March 31, 2022.

Earlier, KKR announced the expansion of KKR’s industrial real estate investment strategy in the United States to include the development from scratch of Class A industrial logistics properties. by KKR, Alpha Industrial Properties (AIP), has begun development at four sites and has four more sites in pre-development. The eight projects are expected to provide 1.8 million square feet (SF) of industrial space serving the Atlanta, Dallas, Denver and Orlando markets. Funding for the projects is provided by KKR Real Estate Partners Americas III, KKR Americas’ opportunistic real estate fund. Square Mile Capital and BMO Harris Bank provided KKR with a $200 million construction facility to fund its investments in industrial developments nationwide.