KKR Closes First Asia Real Estate Fund at US$1.7 billion
HONG KONG–(BUSINESS WIRE) – KKR, a leading global investment firm, today announced the final closing of KKR Asia Real Estate Partners (“AREP” or “Fund”), a $ 1.7 billion fund focused on opportunistic real estate investments in the Asia Pacific focused.
“The completion of AREP marks the next growth chapter for KKR in the Asia Pacific region as we continue to develop our position as a proven alternative investor in all asset classes,” said Ming Lu, head of KKR Asia Pacific. “The Asia-Pacific real estate sector needs sophisticated investments and innovative operational solutions to meet the high demand for modernized real estate and developments necessary to stay ahead of the region’s rapid growth. Our experienced team is well positioned to capitalize on compelling opportunities and add value to our portfolio to deliver attractive, return-adjusted returns for our investors. ”
KKR’s Asia Pacific real estate platform takes a flexible investment approach across assets and platforms, leveraging equity and debt in both emerging and developed countries. AREP will invest in opportunities where KKR can drive significant growth by leveraging the company’s experienced investment teams, global network of industry and operations experts, and years of value creation. Building on KKR’s position as the preferred partner of leading real estate companies and developers, the fund will focus specifically on a range of sectors including commercial, industrial and residential real estate, and opportunistically valued assets in emerging alternative sectors.
John Pattar, Head of Asia Pacific Real Estate at KKR, said, “The transformation of the real estate sector in Asia Pacific is creating a strong pipeline of new and exciting opportunities that work well for the flexible investment approach, local expertise and extensive operational experience from KKR. Increased domestic consumption, productivity and urbanization – coupled with the acceleration of e-commerce and platform-based businesses and the development of the traditional office landscape – are fundamentally changing the region’s real estate sector. AREP will play an important role in this exciting phase of growth in providing the necessary solutions to the region’s real estate industry. ”
AREP, KKR’s first pan-Asian real estate fund, received strong support from a diverse group of new and existing global investors, including public and corporate pension schemes, sovereign wealth funds, insurance companies, foundations, private banking platforms, family offices and high net worth individual investors. The fund is one of the largest supra-regional real estate funds that have been launched in the Asia-Pacific region to date.
“Our ability to raise this fund amid a pandemic is a testament to the strength of the KKR franchise in the Asia-Pacific region, our proven track record of real estate and confidence in our ability to create value,” said Jon Fiorello, head of the real estate strategy team by KKR. “We appreciate the trust that our global investors have placed in our strategy and our team.”
In the Asia-Pacific region, the company has deployed more than $ 1.5 billion in equity since 2011 on approximately 20 real estate transactions, including investments in mixed-use commercial, industrial, hotel, office and retail properties. KKR has also provided debt finance to real estate developers and companies. Assets in KKR’s Asia Pacific real estate portfolio include Namsan Square, an office tower in Seoul’s central business district.
Ralph Rosenberg, Global Head of KKR Real Estate, said: “The completion of AREP is an exciting milestone for our global real estate platform. The Asia-Pacific region is an integral and increasingly important part of our investment strategy as the markets in the region have attractive growth and demographic drivers. Looking ahead, we are well positioned to build on our successes in the Asia-Pacific region and create a diverse investment portfolio that offers our investors attractive returns. ”
KKR launched its dedicated real estate platform in 2011. As of September 30, 2020, the company has approximately $ 14 billion in real estate assets under management in the United States, Europe and the Asia-Pacific region and has a team of approximately 90 dedicated investment professionals in 11 countries offices and 8 countries.
KKR is a leading global investment firm that works with strategic partners who manage hedge funds to manage multiple alternative asset classes, including private equity, loans and real assets. KKR aims to generate attractive investment returns for its fund investors by adopting a patient and disciplined investment approach, employing world class people, and driving growth and value creation with KKR portfolio companies. In addition to the capital it manages for fund investors, KKR invests its own capital and offers financing solutions and investment opportunities through its capital market business. References to KKR’s investments may include the activities of its sponsored funds. For more information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter at @KKR_Co.