KKR, a leading global investment firm, today announced the acquisition of two industrial distribution properties totaling approximately 2.5 million square feet for an aggregate purchase price of approximately $260 million. The two properties are the first industrial properties acquired by KKR’s core plus real estate strategy.

The newly acquired properties are located in major markets of Chicago and Charlotte. Both are state of the art fulfillment centers with an average vintage 2017. The properties were 100% leased at acquisition to a high quality, investment grade tenancy on a long term basis. The properties were acquired through separate transactions with two different sellers.

“We are excited to increase our footprint in these major distribution markets with the addition of two high quality, stable assets,” said Roger Morales, KKR Partner and Head of Commercial Real Estate Acquisitions in the Americas. “We believe that the current environment will lead to continued acceleration of e-commerce penetration which drives demand for large modern distribution centers like the ones we are acquiring. Logistics real estate represents a growth opportunity as more and more U.S. consumers migrate to shopping online.”

KKR owns over 12 million square feet of industrial property in strategic locations near major metropolitan areas across the U.S. Since launching a dedicated real estate platform in 2011, KKR Real Estate has grown to approximately $11.8 billion in AUM across the U.S., Europe and Asia as of March 31, 2020. The global real estate team consists of over 85 dedicated investment professionals, spanning both the equity and credit businesses.

Source: Business Wire

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