KKR Expands Industrial Real Estate Portfolio in the Sunbelt with Acquisitions in Georgia and Texas

Rhea-AI Summary

KKR has successfully acquired two industrial properties in the Atlanta and Dallas-Fort Worth metropolitan areas for approximately $300 million. The Atlanta property includes four Class A warehouses totaling 1.1 million square feet, while the Dallas acquisition consists of two Class A warehouses built in 2017, totaling 1.0 million square feet. Both properties are fully leased to high-quality tenants. KKR's strategy reinforces its commitment to quality industrial real estate, with $7 billion committed to logistics assets since 2018, underlining its growth in key U.S. markets.

Positive

• Acquisition of two high-quality industrial properties increases KKR's footprint in strategic markets.
• Atlanta property consists of four Class A warehouses, enhancing logistics capabilities.
• Dallas acquisition is 100% leased, indicating stable cash flow from tenants.
• KKR has invested around $7 billion in logistics assets since 2018, signaling strong growth potential.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- KKR, a leading global investment firm, today announced that KKR has acquired two industrial properties – one located in Georgia and one in Texas. The properties serve the Atlanta and Dallas-Fort Worth (“DFW”) metropolitan areas and were acquired in two separate transactions from two separate buyers for a total purchase price of approximately $300 million.

The Atlanta property is located in Buford, GA and consists of four newly constructed Class A industrial warehouses totaling 1.1 million square feet (“SF”). The property is adjacent to I-85, an important regional trucking route. The buildings are leased to a diverse mix of high-quality tenants.

The SouthPointe acquisition includes two Class A industrial warehouse buildings in south Dallas built in 2017 totaling approximately 1.0 million SF. The property is located at the intersection of I-35E and I-20, important arteries for the greater DFW metroplex. The two buildings were 100% leased to three tenants at acquisition.

“We are very pleased to further expand our existing industrial footprints in these two important Sunbelt markets,” said Ben Brudney, a Director in the Real Estate group at KKR who oversees the firm’s industrial investments in the United States. “We are continuing to invest in strategically located, high-quality industrial real estate where we believe demographic trends and structurally full supply will continue to drive outsized demand.”

The purchases were made through KKR’s Americas core plus equity real estate strategy. Across its funds in the U.S., KKR has committed or acquired approximately $7 billion of logistics assets in the industrial sector since 2018 and currently owns over 45 million SF of industrial real estate in major U.S. metropolitan areas.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life, and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220809005730/en/

Miles Radcliffe-Trenner and Emily Cummings

212-750-8300

media@kkr.com

Source: KKR

FAQ

What two properties did KKR acquire in 2023?

KKR acquired an industrial property in Buford, Georgia, and another in Dallas, Texas.

What was the total purchase price of KKR's recent acquisitions?

The total purchase price for both properties was approximately $300 million.

How much space do the acquired properties total?

The properties total approximately 2.1 million square feet, with 1.1 million square feet in Atlanta and 1.0 million square feet in Dallas.

What is the significance of these acquisitions for KKR?

These acquisitions expand KKR's industrial real estate footprint in key U.S. markets, aligning with demographic trends and demand.

How much has KKR invested in logistics assets since 2018?

KKR has committed or acquired approximately $7 billion in logistics assets in the industrial sector since 2018.