KKR Closes $1.7 Billion First Asia Real Estate Fund Raising

[Asia Economy Reporter Minji Lee] Global investment firm KKR announced on the 14th that it has finalized the fundraising of its Asia real estate fund (KKR Asia Real Estate Partners, hereinafter referred to as the Fund) with a scale of $1.7 billion.

This fund seeks investment opportunities related to real estate within the Asia-Pacific region. As KKR's first pan-Asia real estate fund, it has attracted strong interest from a diverse range of new and existing global investors, including public and corporate pensions, sovereign wealth funds, insurance companies, endowments, private banking platforms, family offices, and high-net-worth individual investors. It is one of the largest and first pan-regional real estate funds raised in the Asia-Pacific region to date.

The fund invested in opportunities that drive meaningful growth based on KKR’s highly skilled local investment teams, global network of industry and operational experts, and extensive value creation experience. It evaluated various emerging alternative assets, including commercial, industrial, and residential real estate, depending on the opportunity.

Ralph Rosenberg, Global Head of KKR Real Estate, said, “The fund closing marks an exciting milestone for KKR’s global real estate platform. Considering the attractive growth and demographics shared by regional markets, the Asia-Pacific region is essential to KKR’s investment strategy and its importance continues to grow. KKR has now established a position to offer investors a diverse portfolio of investments capable of delivering attractive returns based on future success in the Asia-Pacific region.”

Currently, KKR has been building a dedicated real estate platform since 2011. As of September 30 last year, it manages approximately $14 billion in real estate assets across the United States, Europe, and the Asia-Pacific region, with about 90 dedicated investment professionals working across 11 offices in 8 countries.

KKR’s Asia-Pacific real estate platform employs a flexible investment approach across assets and platforms using both equity and debt in emerging and developed markets within the region. Since 2011, it has invested over $1.5 billion of capital in about 20 real estate transactions in the Asia-Pacific region, covering sectors such as multi-purpose, commercial, industrial, hotel, office, and retail assets. KKR has also provided bond financing to real estate developers and companies, with assets in its Asia-Pacific real estate portfolio including Namsan Square, an office tower located in Seoul’s central business district.