US private equity heavyweight Kohlberg Kravis Roberts & Co (KKR) has entered the French property market with the acquisition of the River Plaza office building near Paris from the Degi Europa fund in liquidation.
US private equity heavyweight Kohlberg Kravis Roberts & Co (KKR) has entered the French property market with the acquisition of the River Plaza office building near Paris from the Degi Europa fund in liquidation.
Financial details of the transaction were not disclosed. However, the asset, located in Asnieres-sur-Seine, was valued at €132.5 mln at end-March 2013. The acquisition was financed by Helaba Landesbank Hessen-Thuringen.
Aberdeen's Degi Europa open-ended fund bought the asset in March 2008 from Compagnie La Lucette for €176 mln. The building was constructed in 2002 and provides around 27,000 m2 of space.
KKR is working with French investment manager Cleaveland, which will manage the asset.
'This investment represents KKR’s first property acquisition in France,' said Guillaume Cassou, a director of KKR London and head of the KKR Europe Real Estate team. 'We are pleased to be working with Cleaveland as joint venture partners and we look forward to doing more deals in France and across Europe.'
Since launching a dedicated real estate platform in 2011, KKR has committed over $700 mln of equity to 11 real estate transactions in the US and Europe. The team consists of 13 dedicated investment professionals.
KKR was advised by Gide Loyrette Nouel, Freshfields, Deloitte and Wargny Katz. Helaba was advised by GGSM and Allez & Associes.
BNP Paribas and Cushman & Wakefield acted for the vendor.
