Drawbridge Joins Forces with KKR to Recapitalize for Growth Back to Press Releases

Drawbridge Joins Forces with KKR to Recapitalize for Growth

June 19, 2015

SAN FRANCISCO & NEW YORK–(BUSINESS WIRE)– Drawbridge Realty (“Drawbridge” or the “Company”) and KKR, a leading global investment firm, today announced that KKR and the management team have recapitalized Drawbridge’s existing portfolio and formed a new independent platform to help grow the business.

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With assets under management of approximately $800 million as of June 1st, 2015, Drawbridge is a real estate investment manager focused on acquiring, developing and managing properties for corporate users with an emphasis on well located, predominately single tenant office, R&D and industrial buildings in markets with secular growth. Drawbridge’s existing portfolio includes approximately three million square feet of real estate in and around the San Francisco Bay Area, San Diego, Salt Lake City, Austin, and Raleigh-Durham’s Research Triangle Park, and the Company intends to expand the platform nationally.

With the financial backing of KKR and other investors, including The Townsend Group, a leading global provider of investment advisory and investment solutions for real estate, Drawbridge has access to significant equity capital. The structure of Drawbridge’s equity base enables the Company to be a long-term owner of assets, which is attractive to corporate tenants seeking continuity with a relationship-focused landlord. Drawbridge is operated independently from KKR and The Townsend Group.

Drawbridge is a sophisticated acquirer of short and long-term leased, single tenant buildings, including corporate sale-leasebacks and build-to-suits, and also of currently vacant buildings that lend themselves to repositioning and leasing to single tenants. Since closing the recapitalization transaction, Drawbridge has continued to grow its asset base through the acquisition of five new properties in San Jose, San Diego, and Raleigh-Durham.

“We are pleased to welcome KKR’s investment to the Drawbridge platform,” said Mark Whiting, Drawbridge’s Co-Founder and CEO. “With the support of KKR, we will work to create value by building an increasingly diversified investment platform.”

“With Drawbridge’s industry leading, vertically integrated real estate capabilities supplemented by access to KKR’s corporate network, we think Drawbridge will be the preferred solutions provider to corporate owners and users of real estate,” said Billy Butcher, Co-Head of KKR Real Estate Acquisitions in the Americas, who is also joining the Drawbridge Board of Directors.

“Townsend is excited to partner with Drawbridge in this new platform and targeted growth phase. We believe the platform brings the specialized, integrated market and property expertise that we seek,” said Rob Davies, Principal, The Townsend Group.

About Drawbridge Realty

Drawbridge Realty is a San Francisco-based real estate investment and development company that targets commercial property investments in select markets across the United States with a current portfolio comprising approximately three million square feet located predominately in the western U.S. The firm pursues properties suited to corporate tenants, with an emphasis on fully occupied buildings, as well as properties that are ready for new development, redevelopment, or conversions to higher and better uses. The current portfolio is comprised of properties located in the Silicon Valley; San Diego; Austin, Texas; and Salt Lake City, Utah. Drawbridge has completed transactions with major corporations including Broadcom, Google, Johnson & Johnson, L-3 Communications, Lockheed Martin, Medtronic, Monsanto, National Instruments, Northrop Grumman, and Unisys.

About KKR

KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world‐class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com or on Twitter @KKR_Co.

About The Townsend Group

The Townsend Group is a leading global provider of investment advisory and investment solutions for real estate, infrastructure, timber and agriculture. With a culture based upon service and success measured by investment performance, Townsend’s clients include many of the world’s leading institutional investors. As of December 31, 2014, Townsend’s Regulatory Assets Under Management were approximately $12.5 billion with Advised Assets exceeding $170 billion. Townsend does not provide any such investment advisory services or investment solutions to Drawbridge.

Drawbridge Realty, LLC
Brandi Tribulato, 415-391-7911
IR@DrawbridgeRealty.com
or
KKR
Kristi Huller, 212-230-9722
Kristi.Huller@kkr.com
or
The Townsend Group
John Hackett, 216-781-9090
jhackett@townsendgroup.com

Source: KKR


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Media Contacts

Americas

Kristi Huller
Miles Radcliffe-Trenner
Julia Kosygina
Telephone: +1 (212) 750-8300

Email: media@kkr.com

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Annabel Arthur
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Email: kkrpr-uk@kkr.com

Asia-Pacific

Anita Davis
Wei Jun Ong
Telephone: +852 3602 7335

Email: media@kkr.com

Investor Relations

‍Craig Larson
Telephone: +1 (877) 610-4910
Outside US: +1 (212) 230-9410
Facsimile: +1 (212) 750-0003
Email: Investor-Relations@kkr.com

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This presentation contains certain forward-looking statements pertaining to KKR & Co. Inc. and its consolidated subsidiaries (collectively “KKR”), including certain investment funds, vehicles and accounts that are managed by KKR (each, a “fund”). Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on KKR’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to KKR or are within its control. If a change occurs, KKR’s business, financial condition, liquidity and results of operations, including but not limited to, assets under management, fee paying assets under management, after-tax distributable earnings, capital invested, syndicated capital, uncalled commitments, cash and short-term investments, fee related earnings, fee and yield segment EBITDA, core interest expense and book value, may vary materially from those expressed in the forward-looking statements. The following factors, among others, could cause actual results to vary from the forward-looking statements: whether KKR realizes all or any of the anticipated benefits from converting to a corporation and the timing of realizing such benefits; whether there are increased or unforeseen costs associated with the conversion, including any adverse change in tax law; the volatility of the capital markets; the general volatility of the capital markets; failure to realize the benefits of or changes in KKR’s business strategies including the ability to realize the anticipated synergies from acquisitions or strategic partnerships or other transactions; availability, terms and deployment of capital; availability of qualified personnel and expense of recruiting and retaining such personnel; changes in the asset management industry, interest rates or the general economy; underperformance of KKR's investments and decreased ability to raise funds; and the degree and nature of KKR’s competition. All forward-looking statements speak only as of the date they are made. KKR does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law. In addition, KKR’s business strategy is focused on the long-term and financial results are subject to significant volatility.

Additional information about factors affecting KKR, including a description of risks that may be important to a decision to purchase or sell any common or preferred stock of KKR & Co. Inc., can be found in KKR & Co. Inc.’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its other filings with the SEC, which are available at www.sec.gov.

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