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KREST makes $234m in debt investments, expands industrial real estate strategy
Transactions - MAY 10, 2022

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KREST makes $234m in debt investments, expands industrial real estate strategy

by Released

KKR announced that KKR Real Estate Select Trust Inc. (KREST) has completed four real estate debt investments with a combined value of $234 million. In addition, the firm expanded its industrial real estate investment strategy in the United States to include ground-up development of class A industrial logistics properties.

The transactions grow the fund’s portfolio allocation to income-focused real estate debt investments to approximately 28 percent as of March 31, 2022. The new debt investments are estimated to have a weighted average yield in the first year of ownership of approximately 8.6 percent.

The debt investments are primarily floating rate and backed by diversified high-quality, stabilized commercial real estate. Underlying exposures include The Old Post Office, a newly redeveloped landmark commercial office building in Chicago; the American Copper Buildings, a pair of luxury multifamily towers in New York City; and two large select-service U.S. hotel portfo

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