KKR continues move into European logistics real estate with Etche France deal

Etche owns and operates a portfolio of around 120 assets throughout France, valued at around €400m in the logistics, light industrial, and office sectors. With the transaction, KKR plans to increase its real estate presence and capacity in France, with a particular focus on the industrial and logistics (I&L) sector, it said.

KKR has been working to assemble a portfolio of assets in cities across Western Europe, last month taking a majority stake in European I&L assets manager Mirastar. In the last two years, the firm has acquired approximately 800,000 sqm of I&L space in France, the Netherlands, Italy, Spain, and Ireland.

Etche was founded in 2010 by the late Jean-Pierre Raynal, deceased in February this year, and Léon Baruc, who is currently the company’s CEO.

Baruc said: “Etche will remain a nimble company with the financial strength and expertise of a major one.”

The investment was made through KKR’s European real estate fund, the firm said in a statement.

“KKR and Etche have substantial experience having successfully invested together in the French logistics and light industrial sectors for the past six years,” said Mai-Lan de Marcilly, director of European real estate at KKR. “We are delighted to invest in high quality, diversified portfolio geared towards the I&L sectors that will benefit from structural tailwinds and strong market dynamics,” he added.

KKR closed its first European real estate fund at $739m in 2016. It has been raising its second fund, KKR Real Estate Partners Europe II, with US pension scheme Maine Public Employees Retirement System revealing a commitment of $25m to the strategy in August 2019.

Source: Penews