Kayne Anderson Real Estate Raises $2.8B Fund
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Kayne Anderson Real Estate, the private equity real estate division of Kayne Anderson Capital Advisors LP, has launched its sixth opportunistic equity fund with $ 2.75 billion.
The Kayne Real Estate Partners VI LP fund has significantly exceeded its original target of $ 2 billion and is the largest fund launched by Kayne Anderson Capital Advisors to date. It received strong support from existing investors as well as great interest from a diverse base of new investors.
Annuities that have announced investments in the Fund include: Teachers’ Retirement System of Louisiana; Pension Scheme for Baltimore Fire and Police Employees; New York State Joint Pension Fund; and Nebraska Investment Council, Lincoln, on behalf of the Omaha School Employees’ Retirement Systems.
The investor cited the combination of an aging population and accelerating new registrations, indicating strong growth in each asset class, as well as the company’s own operator-centric platform, sourcing network, and strong funding and credit relationships for its focus on these categories. KA Real Estate also said it will work with long-term partners to meet their industry-specific real estate needs as the sectors evolve. The company found it was working closely with several industry-leading companies and property developers to deliver state-of-the-art doctor’s offices, innovative, amenable student housing communities, and wellness-oriented senior housing.
Long term strategy
Al Rabil, CEO of Kayne Anderson Capital Advisors and Co-Founder and CEO of Kayne Anderson Real Estate, said in a prepared statement that the support from new and existing investors is testament to the investment firm’s long-term strategy, continued outperformance and commitment alternative core sectors in which it has knowledge and operational know-how.
With the completion of KAREP VI, KA Real Estate completed more than $ 23 billion in gross investments in its equity and debt strategies. The company has invested in around 17,400 senior citizens’ apartments; 50,000 beds in student dormitories; 25 million square feet of medical practice space and more than 9,000 asset-backed loans in target sectors, including two million apartment buildings.
As of September 30, KA Real Estate has more than $ 13.2 billion in real estate under management with opportunistic equity, core capital and real estate debt.
KA Real Estate’s major transactions include the acquisition in November 2017 of Leverich Towers, a 16-story, 310,000-square-foot residential building owned by Jehovah’s Witnesses in Brooklyn, NY. KA Real Estate has remodeled the former hotel at 21 Clark Street in The Watermark in Brooklyn Heights, an independent community of 275 assisted living and memory units.
Also in 2017, KA Real Estate acquired Sentio Healthcare Properties for $ 825 million. At the time, Sentio was the 27th largest senior home owner in the country.