KKR Announces First Debt Investment from KKR Real Estate Select Trust

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NEW YORK–() – KKR, a leading global investment firm, announced today that KKR Real Estate Select Trust Inc. (“KREST”) has provided a mezzanine loan to leading urban real estate firm Crescent Heights to support the refinancing of NEMA Chicago, an 800-unit luxury residential building located in the heart of Chicago’s South Loop. This is KKR’s first investment in debt through KREST, a continually offered registered closed-end fund designed to provide access to income-driven private real estate investments.

Built in 2019, NEMA Chicago is the tallest multi-unit residential tower with unobstructed views of Grant Park, Lake Michigan and the Chicago skyline, and easy access to downtown Chicago employment centers and nearby universities. The 76-story hotel offers 71,000 square feet of state-of-the-art amenities and finishes, including indoor and outdoor pools, an extensive fitness center, meeting rooms and a variety of facilities.

“We are thrilled to consolidate our longstanding relationship with Crescent Heights and to be involved in refinancing this premium property as it enters the next phase of its business plan,” said Matt Salem, KKR Partner and Head of Real Estate Lending. “NEMA Chicago offers luxury living and working environments that are in great demand, and we believe this property is well positioned for continued growth and growth.”

“KKR has been a trusted lending partner for NEMA Chicago throughout many stages of its lifecycle. We are grateful to the entire KKR team for their capital flexibility, ”said Casey Klein, Managing Director of Crescent Heights.

Real estate debt is one of KREST’s three main investment strategies, along with equity investments in stable real estate and premium single tenant properties. KREST targets private borrowing opportunities, including real estate loans, preferred shares or Mortgage Backed Commercial Securities (CMBS), with a focus on attractive yields supported by underlying real estate with a constant and protective cash flow.

“KREST’s first mezzanine investment is part of KREST’s real estate lending strategy: attractive returns backed by strong sponsorship and best-in-class assets in a leading market,” said Billy Butcher, CEO of KREST and Chief Operating Officer of KKR Global Real Estate. “We are delighted to expand and further diversify our portfolio with NEMA Chicago, fueled by the strong relationship between Crescent Heights and our credit team.”

Since launching a dedicated real estate platform in 2011, KKR has grown real estate assets under management to approximately $ 32 billion in the US, Europe and Asia as of June 30, 2021. KKR’s global real estate team consists of approximately 130 dedicated investment professionals including both equity and lending businesses in twelve offices in nine countries.

ABOUT CROSS

KKR Real Estate Select Trust Inc. (“KREST”) is a permanently offered closed-end registered fund that thematically invests in high quality, stable, income-driven equity and debt instruments in commercial real estate. The fund is open to all investors with a daily subscription, and its main investment goal is to provide attractive recurring income, and its secondary goal is long-term capital increase. KREST is operated by KKR Registered Advisor LLC, a subsidiary of KKR & Co. Inc., and leverages the expertise and capabilities of KKR’s global real estate team and resources available through the KKR platform. For more information on KREST, visit his website at www.krest.reit

About KKR

KKR is a leading global investment company offering alternative solutions for asset management, capital markets and insurance. KKR is committed to generating attractive investment returns by following a patient and disciplined investment approach, hiring world-class talent and supporting the growth of its portfolio companies and communities. KKR sponsors private equity funds, loans and real assets, and has strategic partners in hedge fund management. KKR 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 more information on KKR & Co. Inc. (NYSE: KKR) visit the KKR website at www.kkr.com and on Twitter @KKR_Co.

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