KKR, Round Hill Capital and Pulsar Properties Announce the Sale of Their Spanish Logistics Portfolio Joint Venture, PULSAR IBERIA LOGISTICS, to P3 Logistics Parks for €108.3m
KKR, a leading global investment firm, and Round Hill Capital (“RHC”), a leading real estate investment, development and asset management firm, and Pulsar Properties, a renowned logistics developer in Spain of industrial, logistics and intermodal infrastructures, today announced the sale of PULSAR IBERIA LOGISTICS (“the Pulsar portfolio”), the Spanish logistics portfolio joint venture among KKR, RHC and Pulsar Properties, to P3 Logistics Parks, a long-term owner, developer and manager of European logistics properties, for €108.3m.
The Pulsar portfolio comprises ca. 112,000 sqm of big box logistics space, spanning five development schemes, throughout the Greater Madrid Region (82% of lettable area) and Barcelona Region (18% of lettable area). The portfolio is fully leased.
KKR, Round Hill Capital and Pulsar Properties formed the joint venture in October 2018 to acquire logistics investments across select areas of Spain as part of the expansion of its Southern European Logistics platform. The initial portfolio, consisting of four institutional-quality development schemes, was acquired in a joint venture with RoundHill Capital (“RHC”) from developer Pulsar Properties (“Pulsar”) in 2018. The Pulsar joint venture acquired and integrated Fontanar to the portfolio in 2020.
The Pulsar portfolio is strategically located in the strong and established logistics markets of Madrid and Barcelona, in areas with excellent transport connectivity, deep tenant demand, low vacancy rates and a very constrained supply of available logistics buildings and development land.
Seb d'Avanzo, Managing Director at KKR, commented: “We are delighted P3 Logistics Parks will be the new owner for the PULSAR IBERIA LOGISTICS portfolio.” “Logistics remains a high priority sector for us in Europe, and we have already made further investments through our second European Real Estate fund, KKR Real Estate Partners Europe II. ”
Michael Bickford, founder and CEO of Round Hill Capital, added: “The logistics sector continues to be a key focus area for the Round Hill Capital business. This sale demonstrates the effectiveness of Round Hill Capital’s strategy of using our local market expertise across Europe to source opportunities which generate attractive yield-driven returns.”
Jose Mª Alaña Arrinda, founder and CEO of Pulsar Properties, stated: “We are glad to have taken part in this project together with KKR and Round Hill Capital. The development of the pulsar portfolio has been a complete success.”
KKR’s investment was made through its Real Estate Partners Europe fund, its first dedicated European real estate fund, which closed in June 2016 with $739 million in capital commitments.
In July 2021, KKR announced the final closing of KKR Real Estate Partners Europe II, a US$2.2 billion fund dedicated to value add and opportunistic real estate investments in Western Europe. As of June 30, 2021 REPE II had already committed more than $700 million of capital principally across logistics and residential investment opportunities, with KKR’s logistics portfolio including Etche France and Mirastar Logistics. (Source REPE 1 and REPE 2 Businesswire)
Pulsar Iberia has been advised by the Real Estate team of Freshfields Bruckhaus Deringer.
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
About Round Hill Capital
Round Hill Capital is a leading global specialist real estate investment, development and asset management firm. Since inception in 2002, Round Hill Capital has acquired and repositioned for long-term institutional ownership over 135,000 residential units and student housing beds. Round Hill Capital is a responsible landlord of assets offering housing to a range of occupants, from students through to senior citizens.
Round Hill Capital’s strong sector and local expertise helps the firm to identify opportunities and invest selectively in the commercial sector and, as part of this programme, the firm has built up and continues to grow its diversified European light industrial and logistics portfolio.
Round Hill Capital has an established track record of positive returns and invests in, and asset manages real estate on behalf of some of the world’s leading institutions and private investors. Further information on Round Hill Capital is available at: www.roundhillcapital.com.
About Pulsar Properties
Pulsar Properties and its business group form a group of companies highly specialised in land management, promotion, development, and refurbishment of industrial, logistics and intermodal platforms in Spain.
Their extensive track record surpasses more than 25 years in the logistics and intermodal sector and has resulted in their company being considered by the sector as one of the main players in the development of these types of assets in Spain. Further information of Pulsar Properties is available at: www.pulsarproperties.es
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