KKR announced on Friday the successful final close of their KKR Opportunistic Real Estate Credit Fund II (ROX II). This fund is dedicated to making opportunistic investments in senior loans and real estate securities in both the United States and Western Europe. With commitments from both commingled funds and separate accounts, this strategy has exceeded $850 million.
According to Matt Salem, partner and head of real estate credit at KKR, now is an ideal time for investing in real estate credit. The asset class offers attractive returns with a strong foundation based on lending opportunities for high-quality properties at conservative leverage levels.
The flexible mandate of this strategy allows it to pursue risk-adjusted returns through loan originations as well as securities investments. Loan originations will focus primarily on first mortgages secured by institutional sponsors’ high-quality properties. Additionally, leveraging their position as the largest third-party purchaser of risk retention CMBS B-pieces along with their dedicated special servicer K-Star, they will also make strategic investments in securities.
Pictured above: The headquarters for KKR located at 30 Hudson Yards in New York City.
