KKR Expands Industrial Real Estate Footprint in Atlanta with Acquisition by KREST | Business
NEW YORK – (BUSINESS WIRE) – Jan. September 2021–
KKR, a leading global investment firm, announced today that KKR Real Estate Select Trust Inc. (“KREST”) has acquired a 1.1 million square foot Class A industrial warehouse in Southern Gateway near Lambert Farms in Atlanta, McDonough, Georgia has PNK Group, an international real estate developer that implements industrial full-cycle projects.
Completed in 2020, the warehouse is centrally located in the Atlanta logistics corridor with easy access to the airport, the port of Savannah, downtown and midtown Atlanta. The state-of-the-art structure has a 40-foot headroom and two 190-foot truck courts. The property is 100% leased three times net to two high-quality tenants, a leading listed direct sales mattress company and a logistics and supply chain company with a weighted average lease term of around 10 years.
“Today’s acquisition marks another major milestone for KKR as we continue to develop and diversify our industrial footprint and KREST portfolio,” said Ben Brudney, a director of KKR’s Real Estate Group who oversees the company’s industrial investments. “We continue to view Atlanta as a long-term demographic winner with highly attractive market fundamentals and believe that accelerated e-commerce growth will drive demand for strategically located, high-quality distribution centers.”
The investment is part of KREST’s stabilized real estate investment strategy, one of the fund’s three main investment strategies, which focuses on themed, income-generating industrial and multi-family houses with well-rented properties. The property is the fourth industrial property in KREST’s portfolio, which includes over 2.5 million square feet of logistics real estate in attractive, high-growth markets such as Portland, Oregon, Memphis, Tennessee, Raleigh, North Carolina and now Atlanta, Georgia.
Since launching a dedicated real estate platform in 2011, KKR has grown real estate assets under management in the US, Europe and Asia to around $ 32 billion as of June 30, 2021. KKR’s global real estate team consists of approximately 130 dedicated investment professionals from both the equity and credit businesses in twelve offices and nine countries.
JLL brokered the sale on behalf of the PNK Group.
KKR Real Estate Select Trust Inc. (“KREST”) is a continuously offered, registered closed-end fund that invests thematically in high-quality, stabilized, income-oriented commercial real estate equity and debt. The Fund is open to all investors with daily subscriptions and its primary investment objective is to achieve attractive ongoing income with a secondary objective of long-term capital growth. Managed by KKR Registered Advisor LLC, a subsidiary of KKR & Co. Inc., KREST leverages the experience and reach of KKR’s global real estate team, as well as the resources available through the KKR platform. You can find more information about KREST on the website www.krest.reit.
KKR is a leading global investment firm providing alternative asset management, capital markets and insurance solutions. KKR aims to generate attractive investment returns by adopting a patient and disciplined investment approach, employing world class people, and supporting the growth of its portfolio companies and communities. KKR sponsors mutual funds that invest in private equity, credit and real assets, and has strategic partners who manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the leadership of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For more information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and Twitter @ KKR — Co.
About the PNK group
The PNK Group is an international real estate developer that implements industrial full-cycle projects. The group of companies was founded in 2004. PNK Group has 37 logistics and industrial parks, including three US industrial parks in Atlanta, GA, Savannah, GA and Hazleton, PA. Outside the USA, the company operates four of its own plants for the manufacture of important structural components for buildings. The company uses top German technology in modular construction to assemble large prefabricated components and assemblies. The PNK Group builds industrial plants that meet the international FM Global standards. Further information can be found at www.pnk.group.
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PUB: 09/17/2021 4:30 p.m. / DISC: 09/17/2021 4:32 p.m.
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