KKR, a global investment firm, has launched KKR Real Estate Select Trust Inc., a continuously offered, registered closed-end fund. KREST intends to invest primarily in thematically-driven, income-generating commercial real estate, prime single tenant real estate and private real estate debt and preferred equity interests in the U.S., with a flexible mandate to invest globally, including developed markets in Europe and Asia.
“We are excited to offer individual investors access to income-producing private real estate investments with a new strategy and structure,” said Ralph Rosenberg, chairman of KREST and global head of KKR Real Estate. “KREST delivers KKR’s differentiated global real estate capabilities across equity and debt investing in an attractive package, expanding the reach of our franchise with dedicated capital to pursue yielding stabilized real estate assets and mezzanine loans.”
“Commercial real estate investments offer attractive diversification and risk-adjusted returns in today’s low interest rate environment,” said Billy Butcher, chief executive officer of KREST and chief operating officer of KKR global real estate. “KREST is focused on constructing a diversified portfolio of high-quality equity and debt exposures to deliver stable income and long term appreciation in the real estate asset class, which has traditionally been difficult to access for individual investors.”
“KREST is one of the first continuously offered, 1940 Act REITs to offer global reach in private real estate to individual investors,” said Doug Krupa, co-head of KKR’s private wealth partners group. “We believe the diversification and attractive yield available through private real estate can be used in a wealth management portfolio to enhance income in a low interest rate environment and help investors to meet their long-term goals. We are excited to make KREST available to financial advisors by working with leading distribution platforms. This is an important milestone in our mission to deliver innovative products that expand investor access to KKR’s investment platforms.”
Simpson Thacher & Bartlett LLP advised KKR on the formation of KREST.