KKR closes first Asia Pacific real estate fund at $1.7 billion

KKR closes first Asia Pacific real estate fund at $1.7 billion

By
Kane
Wu

HONG
KONG
(Reuters)

U.S.-based
investment
firm
KKR
&
Co
(NYSE:)
said
on
Thursday
it
had
closed
its
first
fund
targeting
real
estate
investments
in
Asia
Pacific
at
$1.7
billion.

The
announcement
comes
days
after
KKR
closed
its
inaugural
Asia
infrastructure
fund,
as
the
private
equity
powerhouse
expands
its
platforms
in
the
region.

John
Pattar,
KKR
head
of
real
estate
Asia,
told
Reuters
the
new
fund
would
focus
on
Asia’s
urbanization
trends,
corporate
carve-outs
of
non-core
real
estate
assets
in
Japan
and
also
take-private
opportunities
in
markets
including
Australia,
Singapore
and
Japan.

“Increased
domestic
consumption,
productivity
and
urbanization

combined
with
the
acceleration
of
e-commerce
and
platform-based
businesses
and
the
evolution
of
the
traditional
office
landscape

is
fundamentally
reshaping
the
region’s
real
estate
sector,”
he
said.

The
fund
is
also
looking
at
opportunities
in
countries
such
as
South
Korea,
which
has
recovered
from
the
COVID-19
pandemic,
said
Hong
Kong-based
Pattar,
a
veteran
real
estate
investor
poached
by
KKR
in
2018
to
lead
its
Asia
real
estate
efforts.

“We
look
at
markets
that
handle
COVID
best,”
he
said.
“…Asia
Pacific
is
the
first
to
recover
in
2021.”

KKR’s
real
estate
fundraising
comes
as
private
equity
firms
globally
have
expanded
from
a
model
of
buying
out
companies
to
turn
around
and
sell
for
profit.
They
now
invest
through
a
range
of
alternative
asset
management
products
including
infrastructure,
real
estate,
hedge
funds
and
credit.

Investment
firms
raised
$9
billion
in
47
Asia-focused
real
estate
funds
last
year,
following
a
record
$26
billion
raised
in
2019,
according
to
data
provider
Preqin.
KKR’s
U.S.-based
rival
Blackstone
Group
(NYSE:)
raised
the
region’s
biggest
real
estate
fund
in
2018
at
$7.1
billion.

KKR
will
also
be
competing
with
regional
firms
such
as
Hillhouse
Capital
Group,
which
has
hired
former
Warburg
Pincus
and
Blackstone
dealmakers
to
build
out
its
real
estate
capabilities.

The
New
York-headquartered
firm
launched
its
dedicated
global
real
estate
platform
in
2011
and
has
about
$14
billion
of
real
estate
assets
under
management
as
of
the
end
of
September
2020.

In
Asia
Pacific,
it
has
deployed
more
than
$1.5
billion
of
equity
across
about
20
real
estate
transactions
since
2011.

Its
portfolio
includes
office
tower
Namsan
Square
in
Seoul,
Oasis
Shopping
Centre
in
Australia’s
Gold
Coast
and
Hong
Kong
retail
assets
Lake
Silver
and
Parkside.


Disclaimer:


Fusion
Media

would
like
to
remind
you
that
the
data
contained
in
this
website
is
not
necessarily
real-time
nor
accurate.
All
CFDs
(stocks,
indexes,
futures)
and
Forex
prices
are
not
provided
by
exchanges
but
rather
by
market
makers,
and
so
prices
may
not
be
accurate
and
may
differ
from
the
actual
market
price,
meaning
prices
are
indicative
and
not
appropriate
for
trading
purposes.
Therefore
Fusion
Media
doesn`t
bear
any
responsibility
for
any
trading
losses
you
might
incur
as
a
result
of
using
this
data.


Fusion
Media

or
anyone
involved
with
Fusion
Media
will
not
accept
any
liability
for
loss
or
damage
as
a
result
of
reliance
on
the
information
including
data,
quotes,
charts
and
buy/sell
signals
contained
within
this
website.
Please
be
fully
informed
regarding
the
risks
and
costs
associated
with
trading
the
financial
markets,
it
is
one
of
the
riskiest
investment
forms
possible.

Category Latest Posts