KKR revealed as buyer of Corio assets in France

Kohlberg Kravis Roberts (KKR), which recently raised its first real estate fund, has revealed that it led the acquisition of four shopping centres owned by Dutch listed Corio in France late last year in one of the first steps towards building up a retail portfolio in the country.

KKR, the New York-based private equity firm, announced in December that it had raised $1.5 bn (€1 bn) for a real estate strategy centred on the US. Up to a quarter of the money is earmarked for opportunities in Western Europe.

It now appears that, around the same time, KKR and its French asset manager partner, Seefar, agreed to pay €104 mln for four of Corio's shopping centres in France. The assets are Les Quais d’Ivry in Ivry-sur-Seine; La Grande Porte in Montreuil; L’espace du Palais in Rouen and La Mayenne in Laval. Corio did not disclose the identity of the buyers at the time.

Seefar will act as asset manager. The acquisition was financed by Helaba Landesbank Hessen-Thuringen.

Guillaume Cassou, who leads KKR's European real estate team, said: 'We have an ambitious strategy for this portfolio and intend to invest further in French retail assets.'

The KKR real estate team partners with property owners, developers and lenders to provide financial solutions in a variety of transactions, including the acquisition or financing of existing assets from real estate companies or developers. The team consists of 15 professionals who draw on all of KKR’s resources, including the private equity, asset management, and capital markets units.

KKR and Seefar were advised in this transaction by Gide Loyrette Nouel Wargny Katz, Freshfields, Deloitte and Alamo. Cushman & Wakefield and Retail Partners were the real estate advisers for the vendor. Helaba was advised by GGSM and Allez & Associates.

Corio was advised by Allez & Associes, Allen & Overy, BUL, DC Advisory and SL & Associés.

Shopping centre investment is one of the themes at the International Council of Shopping Centre's European annual conference in Istanbul from 2-3 April 2014. Click here for the full conference programme.