New York-listed private equity giant KKR has confirmed it is acquiring a 40,000 m2 retail park portfolio in the UK in its first European property deal.
New York-listed private equity giant KKR has confirmed it is acquiring a 40,000 m2 retail park portfolio in the UK in its first European property deal.
The vendor of the Tuscany retail portfolio was UK-based Resolution Property. The financial details of the transaction were not disclosed but Property Week put the investment volume at £112.5 mln (€132 mln), reflecting a yield of 6.5%.
KKR, formerly known as Kohlberg Kravis Roberts, ranks alongside other US-based groups Blackstone, Cerberus, Lonestar and TPG as one of the largest private equity investors in the world. At end-March this year, KKR had $78 bn (€59 bn) of assets under management.
In a statement, KKR said it had selected Quadrant Estates as asset manager for the Tuscany retail park portfolio.
The portfolio is made up of multi-let retail warehouse space in Oxford, Glasgow and Sunderland and contains a combination of food, shopping and retail outlets.
The assets have an occupancy ratio of 90% and a weighted average lease length of 10 years. The investment also provides operational upside through asset management and lease re-gearing, KKR said.
Guillaume Cassou, a director of KKR London and head of the KKR Europe Real Estate team, said: 'We are excited to be announcing KKR's first European property acquisition, and are delighted that it is in a strong portfolio which combines excellent locations and attractive opportunities for asset management.
'We look forward to doing more such deals in the UK and Europe,' Cassou added.
Jones Lang LaSalle advised KKR and Quadrant. CBRE acted for the vendor in the deal which is expected to close in a few weeks.
