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Investors - JANUARY 20, 2023

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KKR REIT caps redemptions

by Andrea Zander

The $1.6 billion KKR Real Estate Select Trust (KREST) has plans to limit redemptions from its investors.

It received requests in the first quarter-tender-offer period to repurchase 8.1 percent of its net-asset value, exceeding the 5 percent quarterly limit, according to a filing Wednesday. The trust fulfilled 62 percent of each shareholder’s request. KKR’s stock dropped 5.7 percent to $49.98 at 12:12 p.m. in New York on Thursday, reported Bloomberg.

“Within KREST, we are balancing providing access to private real estate, which is an illiquid asset class, with the recognition and understanding that the optionality for a level of regular liquidity is an important feature for KREST shareholders,” said Billy Butcher, CEO of KKR Real Estate Select Trust.

The redemption caps underscore the risks wealthy individuals have taken by investing in private real estate investment trusts managed by alternative asset managers and a growing crop of similar produ

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