KKR Launches Pure Lease Investment Platform Strategic Lease Partners



Global investment firm KKR recently announced the launch of a new Strategic Lease Partners platform to invest in GlobeSt.com’s diversified portfolio of three-tier rental real estate. reports… The platform will seek to acquire over $ 3 billion in assets.

KKR has hired industry veterans Andres Dallal and Joseph Mastrocol to become partners. The couple served as CEOs at WP Carey where they were responsible for sourcing, appraising, negotiating and structuring net investment in leases in North America. Andrew Hughenga will also join KKR from WP Carey as Vice President, while Daniel Hanan will serve as General Counsel.

“We believe there is an attractive opportunity to acquire NNN assets and become the preferred real estate partner for companies looking for comprehensive, creative network rental solutions,” KKR partners Billy Butcher and Jenny Box said in a statement. statement… “By leveraging KKR’s vast opportunities and resources in the real estate, credit and capital markets, as well as the close relationship between them, SLP can be an excellent partner for corporate tenants. We look forward to partnering with Andres and Joe, two seasoned investors with deep relationships and extensive experience in sourcing and evaluating clean lease opportunities, to create an SLP. ”

Strategic Lease Partners is KKR’s first dedicated net lease initiative, despite having previously invested in the net lease asset class. The main function of the platform will be to conduct leaseback deals with a focus on the industrial asset class, Dallal told GlobeSt.com.

The main focus will be on industrial real estate.

“It’s a diversified platform, but we’ll be focusing on industry,” Dallal said. “In our opinion, industrial properties, especially industrial buildings, are critical to the company’s operations. Our mission is mission-critical corporate real estate. ”

Dallal added that strategic rental partners will also invest in distribution and logistics buildings. The platform will invest from time to time in office, retail and some specialized assets such as medical and laboratory applications. KKR also plans that the platform will focus on long-term leases and sub-investment grade tenants.

“Given our close relationship with KKR’s lending business, this will give us a competitive edge in the operational underwriting of companies below investment grade,” Mastrocola told GlobeSt.com.

KKR’s management did not disclose the investment schedule of the strategic lease partners, but said it is ready to proceed immediately with the deals. Mastrocola said the company expects to become an “active player” after Labor Day and closing deals in the fourth quarter.

“We are delighted to join the KKR team in this new venture and develop SLP as a trusted partner for corporations as long-term leaseholders,” said Dallal and Mastrocola. “We believe that with KKR’s resources and a culture of collaboration across all strategies, SLP is uniquely placed to understand the corporate tenant’s perspective and take decisive action to provide a reliable solution for corporations across the lending spectrum.”

Joe Dayton can be reached at joed@fifthgenmedia.com.


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