Global investment firm KKR announced on Tuesday that it has closed its second European real estate fund at $2.2 bn (€1.9 bn), amid strong interest from both new and existing investors.
Real Estate Partners Europe II (REPE II) is the successor fund to REPE I, KKR’s first dedicated European real estate fund, which closed in June 2016 with $739 mln (€623 mln) in capital commitments.
The firm said REPE II, which focuses on value-add and opportunistic real estate investments in Western Europe, had by end-June 2021 already committed more than $700 mln across mainly the logistics and residential sectors. Other sectors targeted by the fund include student housing, hospitality and high-quality offices.
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.'
REPE II received strong support from a diverse group of investors, including public pension plans, sovereign wealth funds, insurance companies, financial institutions, endowments, private banking platforms, family offices and high net worth individual 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.'
Ralph Rosenberg, partner and global head of KKR Real Estate, said Europe continued to represent an attractive investing environment for 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.'
KKR Real Estate has around $28 bn of assets under management in real estate strategies globally.