KKR Expands US Industrial Real Estate Strategy with Investments in Ground-up Development
NEW YORK–(BUSINESS WIRE) – KKR, a leading global investment firm, today announced the expansion of KKR’s industrial real estate investment strategy in the US to include ground-up development of Class A industrial logistics properties. KKR’s wholly owned US industrial real estate platform, Alpha Industrial Properties (AIP), has begun development at four sites and has another four sites in pre-development. KKR has appointed industry veterans Greg Bradley and Matt Singleton as Senior Vice Presidents at AIP responsible for managing the platform’s sourcing, pre-development and development activity.
The eight projects are expected to deliver 1.8 million square feet (SF) of state-of-the-art industrial space serving the Atlanta, Dallas, Denver and Orlando markets. Funding for the projects is being provided by KKR Real Estate Partners Americas III, KKR’s Americas opportunistic equity real estate fund.
“The addition of ground-up development capabilities enhances our ability to assemble diversified portfolios of high quality industrial real estate and increase our presence in growth markets where we believe the supply-demand fundamentals remain dynamic,” said Ben Brudney, a Director in the Real Estate group at KKR who oversees the firm’s industrial investments in the United States. “Our extensive experience acquiring approximately $ 7 billion of industrial real estate in the US over the last four years positions us to identify attractive opportunities and development is a natural extension of our strategy.”
The development program increases KKR’s strategy of acquiring industrial assets and portfolios in major US markets that are experiencing outsized demand for logistics real estate driven by demographic trends and the proliferation of ecommerce. Across its funds, KKR has committed or acquired approximately $ 7 billion of US logistics assets since 2018 and currently owns over 45 million SF of industrial real estate.
Square Mile Capital and BMO Harris Bank have provided KKR with a $ 200 million construction facility to finance its investments in industrial developments nationwide.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.