KKR [NYSE: KKR] and Round Hill Decides to Sell their Spanish Logistics Portfolio JV

KKR & Co. Inc. [NYSE: KKR] and Round Hill Capital revealed that they both have decided to sell PULSAR IBERIA LOGISTICS also known as Pulsar Portfolio to P3 Logistics Parks which is a long-term owner, developer, and manager of European logistics properties, for €108.3m. PULSAR IBERIA LOGISTICS is the Spanish logistics portfolio Joint Venture (JV) among KKR, RHC, and Pulsar Properties.

KKR, Round Hill Capital, and Pulsar Properties established the JV in October 2018 to purchase logistics investments across select areas of Spain as part of the growth of its Southern European Logistics platform. The preliminary portfolio which is comprised of four institutional-quality development schemes was purchased in a JV RHC from developer Pulsar Properties in 2018. The Pulsar JV purchased and consolidated Fontanar to the portfolio in 2020.

PULSAR IBERIA LOGISTICS

The Pulsar portfolio is situated in the robust and reputable logistics markets of Madrid and Barcelona, in areas with exceptional transport connectivity, deep tenant demand, low vacancy rates, and a very limited supply of available logistics buildings and development land.  The Pulsar portfolio encompasses ca. 112,000 sqm of big-box logistics space.

It covers five development schemes, all over the Greater Madrid Region which includes 82% of the lettable area, and Barcelona Region which includes 18% of the lettable area. The portfolio is fully leased. KKR disclosed that it is striving to make progress in logistics. The firm has already made the further investment through its second European Real Estate fund, KKR Real Estate Partners Europe II.

Previously, KKR confirmed the final closing of KKR Real Estate Partners Europe II which is a US$2.2 billion fund devoted to value add and opportunistic real estate investments in Western Europe in July 2021. In addition, as of June 30, 2021, REPE II had already pledged more than $700 million of capital mainly across logistics and residential investment opportunities.