KKR to Sell Industrial Real Estate Portfolio to Oxford Properties for $2.2 Billion
KKR has agreed to sell a 14.5 million square foot industrial portfolio to Oxford Properties for approximately $2.2 billion. The portfolio includes 149 distribution buildings across 12 major U.S. markets. This strategic move follows KKR's consolidation of high-barrier infill warehouses since 2018, reflecting significant growth in logistics driven by e-commerce. KKR will retain over 20 million square feet of industrial property post-sale. Oxford aims to expand its U.S. industrial operations through this acquisition, which aligns with its global investment strategy.
- Sale of a highly valuable portfolio for approximately $2.2 billion.
- Strategic focus on high-growth markets with increased demand for logistics.
- KKR retains over 20 million square feet of industrial real estate, ensuring continued presence in the market.
- None.
KKR, a leading global investment firm, today announced that KKR has agreed to sell a 14.5 million square foot infill and light industrial portfolio to Oxford Properties (‘Oxford’), a leading global real estate investor, asset manager and business builder, for approximately
Since 2018, KKR strategically aggregated and scaled this portfolio of well located, high barrier to entry infill warehouses with a focus on high-growth markets with diverse multi-faceted demand drivers, near major supply chain hubs and transportation corridors. Roger Morales, Partner and Head of Real Estate Acquisitions, and Ben Brudney, Director on KKR’s real estate team leading its logistics efforts, architected the strategy and assembled the portfolio though more than 50 individual property transactions together with KKR’s industrial operating platform, Alpha Industrial Properties.
“Four years ago, we set out to create a large stabilized portfolio that would benefit from secular changes in the logistics sector largely driven by e-commerce and consumer preference changes. Given the highly fragmented asset class, the strategy included the creation of a best-in-class operating platform and a targeted investment effort focused on growing cities and key distribution nodes in the U.S.,” said Mr. Morales. “Today’s transaction not only demonstrates how this strategy is performing for our investors, but also reflects the tremendous market opportunity we continue to see in industrial real estate.”
Following the completion of the sale of the portfolio, KKR will continue to own over 20 million square feet of industrial property across major metropolitan areas in the U.S. Since launching a dedicated real estate platform in 2011, KKR has grown real estate assets under management to approximately
”High quality, infill, consumption-driven industrial portfolios of scale trade infrequently, so this transaction is an important next step for Oxford to build a large scale industrial business in the U.S.,” commented Ankit Bhatt, VP of Investments at Oxford Properties who leads the firm’s U.S. industrial investment strategy. “Growing our U.S. industrial business is one of Oxford’s highest conviction global investment strategies as we continue to build, buy and invest in the physical infrastructure that serves the digital economy. The acquisition serves as a launchpad for Oxford’s light industrial business which perfectly complements our big box development platform, IDI Logistics. We believe scale will become an important differentiator for industrial real estate operators, and we continue to pursue opportunities in the U.S. light industrial sector.”
Oxford has substantially grown its global industrial business in recent years. In January 2019, it acquired IDI Logistics alongside Ivanhoe Cambridge for US
“Across the globe, we are building, buying and growing world class industrial business in service of our global capital allocation priorities,” commented Chad Remis, EVP of North America at Oxford Properties. “As a result of this transaction, and recent activity in the sector, we are rapidly closing in our stated goal to have one-third of our global equity deployed into the industrial asset class. Having previously been a mezzanine lender on the portfolio acquired from KKR, we have a high degree of conviction on the growth potential of these assets. It also demonstrates the power of Oxford’s fully integrated Credit business to help drive future investment synergies while generating attractive returns.”
CBRE National Partners acted as real estate advisor for KKR. JLL Industrial Capital Markets acted as advisor for Oxford.
About KKR
KKR is a leading global investment firm that offers alternative asset management and 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 The 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.
About Oxford Properties
Oxford Properties Group (“Oxford”) is a leading global real estate investor, asset manager and business builder. It builds, buys and grows defined real estate operating business with world-class management teams. Established in 1960, Oxford and its portfolio companies manage approximately C
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