KKR is investing up to $1bn (€927.2bn) in a newly created US medical outpatient buildings partnership with Healthcare Realty Trust.

The investment firm is initially contributing capital for an 80% stake in the pair’s joint venture which Healthcare Realty has seeded with a $382.5m portfolio consisting of 12 of its existing properties.

NYSE-listed Healthcare Realty said it will receive around $300m for the joint venture’s seed portfolio and will retain a 20% interest in the partnership. The seed portfolio comprises a total of 762,399sqft of assets that are 98% occupied.

KKR has also committed up to $600m to the venture to pursue additional acquisitions or contributions of stabilised assets that are a match for its long-term capital base.

Healthcare Realty said the joint venture will partner with KKR to explore additional acquisitions, including the potential contribution of more Healthcare Realty properties to the partnership.

Todd Meredith, president and CEO of Healthcare Realty, said: “We look forward to collaborating with KKR to strategically invest in the medical outpatient sector.

”In the near term, our capital allocation priority is to repurchase stock on a leverage neutral basis. Looking ahead, we may contribute additional Healthcare Realty properties to the JV or pursue acquisitions, depending on market conditions.” 

Peter Sundheim, managing director at KKR, said: “This high-quality portfolio is a great match for our long-term capital. We look forward to collaborating on new investments at an opportune moment when the current deleveraging cycle is impacting all types of real estate, including in favored sectors with excellent long-term fundamentals and demand drivers.”

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