KKR closes first Asia Pacific real estate fund at $1.7 billion – Reuters

HONG KONG (Reuters) – U.S.-based investment firm KKR & Co said on Thursday it had closed its first fund targeting real estate investments in Asia Pacific at $1.7 billion.

The announcement comes days after KKR closed its inaugural Asia infrastructure fund, as the private equity powerhouse expands its platforms in the region.

John Pattar, KKR head of real estate Asia, told Reuters the new fund would focus on Asia’s urbanization trends, corporate carve-outs of non-core real estate assets in Japan and also take-private opportunities in markets including Australia, Singapore and Japan.

“Increased domestic consumption, productivity and urbanization – combined with the acceleration of e-commerce and platform-based businesses and the evolution of the traditional office landscape – is fundamentally reshaping the region’s real estate sector,” he said.

The fund is also looking at opportunities in countries such as South Korea, which has recovered from the COVID-19 pandemic, said Hong Kong-based Pattar, a veteran real estate investor poached by KKR in 2018 to lead its Asia real estate efforts.

“We look at markets that handle COVID best,” he said. “…Asia Pacific is the first to recover in 2021.”

KKR’s real estate fundraising comes as private equity firms globally have expanded from a model of buying out companies to turn around and sell for profit. They now invest through a range of alternative asset

Author: Global Real Estate