London, 12 November 2021: KKR, Round Hill Capital (“RHC”) and Longridge Capital (“LRC”), today announced the sale of their Italian logistics portfolio held through their investment in the Elizabeth real estate fund (the “Elizabeth portfolio”), to EQT Exeter, a long-term owner, developer and manager of European logistics properties, for €117.5m.
The Elizabeth portfolio comprises nine assets with a total of approximately 131,000 sqm of last mile logistics space, throughout Central and Northern Italy with principal concentrations in the Milan market (approximately 45% by lettable area), Emilia-Romagna region (27%) and the Rome market (16%). The portfolio is fully leased.
KKR, RHC and LRC agreed to invest in October 2018 to acquire logistics investments across select areas of Italy as part of the expansion of KKR’s Southern European Logistics platform. The Elizabeth portfolio is the second disposal by the co-investors following the sale of the Victoria Big Box logistics portfolio totaling approximately 66,000 sqm of net lettable area to Morgan Stanley in 2020 for €51m.
The Elizabeth portfolio was held in an Italian real estate fund managed by Namira SGR, an independent asset management company based in Italy focusing on real estate and credit funds.
Seb d'Avanzo, Managing Director at KKR, commented: “We are delighted with the conclusion to this investment which was part of our successful thematic strategy around Southern European logistics. The sector continues to be a strong investment focus for us across Europe as we continue to see very favourable tailwinds for logistics.”
Michael Bickford, founder and CEO of Round Hill Capital, added: “This sale is in line with our long term strategy of sourcing quality opportunities in local markets and optimising the value of underlying assets to drive returns. Yields in logistics continue to benefit from significant tailwinds driven by post-pandemic shifts in supply chains, and the sector remains a key focus area for Round Hill Capital and one in which we remain committed to expanding our presence across Europe.”
Gavin Geddes, Managing Director at Longridge Capital, stated: “We have successfully aggregated, repositioned and fully let this portfolio and have exited ahead of business plan to a long term investor. We believe that the Elizabeth and prior Victoria Portfolio sales draw to a conclusion a very successful collaboration with KKR and RHC.”
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 US$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.
Chiomenti’s Real Estate team acted as legal advisor to Namira SGR.
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About KKR
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.
Media Contacts
KKR
Alastair Elwen / Sophia Johnston
Finsbury Glover Hering
Telephone: +44 20 7251 3801
Email: kkr@fgh.com
Round Hill Capital
Communications Advisers to Round Hill Capital
Good Relations
Katherine Corbett, Associate Director
Tel: 07984 683 212
kcorbett@goodrelations.co.uk / roundhillcapital@goodrelations.co.uk
Longridge Capital
Gavin Geddes
Longridge Capital
Email: info@longridge.com