KKR’s Strategic Lease Partners Acquires $780m in Net Leased Properties in Q4 2021

Strategic Lease Partners (SLP) is a platform launched by KKR to acquire a diversified portfolio of triple-net lease (NNN) real estate. Strategic Lease Partners closed six transactions in the fourth quarter of 2021 for a total of US$ 780m.

SLP is working closely with KKR’s real estate, credit and capital markets teams to underwrite a wide range of mission-critical properties and deliver customized sale-leaseback solutions for a group of high quality corporate and sponsor-backed tenants.

The platform is initially targeting to acquire more than $3 billion in assets, primarily capitalized through KKR’s credit and real estate funds.

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The six transactions SLP closed last quarter followed the platform’s launch in August 2021 and consisted primarily of mission critical industrial assets, with a focus on sale-leasebacks (SLBs) for private equity-backed companies with durable business models.

The transactions ranged in size from under $15 million for an individual property to over $500 million for a portfolio and included both domestic and cross-border portfolios. SLP’s acquisitions comprised 31 individual assets across nearly 5.4 million square feet with a weighted average lease term (WALT) of over 16 years, while over half of the portfolio holds LEED designation.

Source: SWF Institute

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