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KKR plans $3B triple-net-lease portfolio

KKR Co-Chair Henry Kravis (Wikipedia)

Global investment firm KKR is diving deeper into real estate, launching a platform designed for triple-net lease investments.

The company announced the formation of Strategic Lease Partners this week. KKR has plans for a portfolio that will exceed $3 billion with diversified assets, according to Commercial Property Executive.

The platform intends to rely on KKR’s credit and real estate funds. In a statement from company partners, KKR singled out SLP as a potential partner for corporate tenants.

Former W.P. Carey executives Andrés Dallal and Joseph Mastrocola will serve as partners for SLP. The platform will soon begin to acquire assets and arrange solutions for sale leasebacks. KKR didn’t specify a property type that SLP will hunt.

A triple-net lease is an agreement where the tenant promises to pay for expenses such as maintenance, which would typically be the landlord’s responsibility, in addition to rent and utilities. In exchange, the rent on the properties is less than it would be in a conventional lease.

KKR has been busy in real estate recently. Last week it sold a $2 billion industrial portfolio to Oxford Properties. Earlier in the month, the company teamed up with Dalan Management to buy a multifamily portfolio in Brooklyn  from Bruman Realty at a contract price of $860 million.

[CPE] — Holden Walter-Warner