NEW YORK--(BUSINESS WIRE)--
KKR today announced that affiliates and clients of KKR, including KKR
Financial Holdings LLC ("KFN") (NYSE: KFN), in partnership with Colonie
Pacific, acquired Colonie Center ("Colonie" or "the Center"). Financial
terms of the transaction were not disclosed.
Colonie is a 1.3 million square foot super-regional mall with over 113
stores that sit on 91 acres in Albany, New York. The Center, located
directly off of I-87 at the intersection of Wolf Road and Central Avenue
where an average of 117,000 vehicles pass daily, benefits from being in
a high-traffic area and within two miles of the University at Albany.
The property generates an estimated $245 million in retail sales,
including anchors with specialty retail stores producing an estimated
$400 per square foot.
Anchored by Macy's, Boscov's and Sears, the mall features a strong
line-up of national retailers, including Aeropostale, American Eagle,
Christmas Tree Shops, Express, Sephora and Victoria's Secret. Colonie
also has a 13-screen Regal Cinemas and a Whole Foods that is anticipated
to open in 2014.
In 2007, Colonie Center underwent a significant renovation that
incorporated a "lifestyle" retail component and an improved streetscape
and attracted national destination tenants such as L.L. Bean, P.F.
Chang's and Cheesecake Factory.
KKR and Colonie Pacific, a partnership between Pacific Retail Capital
Partners, Collarmele Partners and Peter Fair (Continuum Partners), plan
to make additional capital investments and will also focus on attracting
new tenants to the market.
Rosenberg, a Member of KKR and Head of the firm's Real Estate group,
stated: "Colonie is an institutional-quality asset with tailwinds from a
significant recent renovation. With additional investment and a revamped
leasing strategy, Colonie will be an even more attractive home for
current and prospective retailers in Albany. The transition in ownership
will be seamless for shoppers, and our goal is to make the shopping
experience even better than it is today."
Colonie is KKR's third retail real estate investment since 2011 and
ninth overall. KKR's real estate investment team seeks to partner with
real estate owners, lenders, operators and developers to provide
flexible capital to respond to transaction-specific needs, including the
outright purchase or financing of existing assets or companies and the
funding of future development or acquisition opportunities.
Kirkland & Ellis LLP served as legal Counsel to KKR.
Founded in 1976 and led by Henry
Kravis and George
Roberts, KKR is a leading global investment firm with $75.5 billion
in assets under management as of December 31, 2012. With offices around
the world, KKR manages assets through a variety of investment funds and
accounts covering multiple asset classes. KKR seeks to create value by
bringing operational expertise to its portfolio companies and through
active oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with investors through
its client relationships and capital markets platform. KKR is publicly
traded on the New York Stock Exchange (NYSE: KKR). For additional
information, please visit KKR's website at www.kkr.com.
About KKR Financial Holdings LLC
KKR Financial Holdings LLC is a specialty finance company with expertise
in a range of asset classes. KFN's core business strategy is to leverage
the proprietary resources of its manager with the objective of
generating both current income and capital appreciation. KFN executes
its core business strategy through its majority-owned subsidiaries. KFN
is externally managed by KKR Financial Advisors LLC, a wholly-owned
subsidiary of KKR Asset Management LLC, which is a wholly-owned
subsidiary of Kohlberg Kravis Roberts & Co. L.P. Additional information
regarding KFN is available at http://www.kkr.com.
Kristi Huller, 212-230-9722
Source: Kohlberg Kravis Roberts & Co. L.P.
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