Global investment firm KKR has added ground-up development to its US industrial real estate investment strategy.
KKR said Greg Bradley and Matt Singleton have joined its US industrial real estate platform, Alpha Industrial Properties (AIP), as senior vice presidents to manage the platform’s sourcing, pre-development and development activity.
AIP is developing four projects and has an additional four sites in pre-development. The eight projects are expected to deliver 1.8m sqft of industrial space serving the Atlanta, Dallas, Denver and Orlando markets.
Funding for the projects is being provided by KKR Real Estate Partners Americas III, KKR’s Americas opportunistic equity real estate fund.
Square Mile Capital and BMO Harris Bank have provided KKR with a $200m (€190m) construction facility to finance its investments in industrial developments nationwide, KKR said.
Ben Brudney, a director in the real estate group at KKR who oversees the firm’s industrial investments in the US, said the addition of ground-up development capabilities enhances KKR’s ability to assemble diversified portfolios of industrial real estate and “increase our presence in growth markets where we believe the supply-demand fundamentals remain dynamic”.
Across its funds, KKR has committed or acquired around $7bn of US logistics assets since 2018 and currently owns over 45m sqft of industrial real estate.
“Our extensive experience acquiring approximately $7bn of industrial real estate in the US over the last four years positions us to identify attractive opportunities and development is a natural extension of our strategy,” Brudney said.
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