Global investment firm KKR recently announced it launched Strategic Lease Partners, a new platform to invest in a diversified portfolio of triple-net lease real estate, GlobeSt.com reports. The platform will seek to acquire more than $3 billion in assets.
KKR recruited industry veterans Andrés Dallal and Joseph Mastrocola, who will join as partners. The pair served as executive directors at W.P. Carey, where they were in charge of sourcing, evaluating, negotiating and structuring net lease investments in North America. Andrew Huizenga will also join KKR from W.P. Carey and work as VP, while Daniel Hanan will serve as chief counsel.
“We believe there is an attractive opportunity to acquire NNN assets and be a real estate partner of choice for companies in need of comprehensive, creative net lease solutions,” KKR Partners Billy Butcher and Jenny Box said in a statement. “By leveraging KKR’s broad-based real estate, credit and capital markets capabilities and resources – and the deep connectivity between them – SLP can be a differentiated partner for corporate tenants. We look forward to partnering with Andrés and Joe, two accomplished investors with deep relationships and great experience sourcing and evaluating net lease opportunities, to build-out SLP.”
Strategic Lease Partners is KKR’s first dedicated net lease initiative, despite the company having invested in net lease asset class before. The platform’s main function will be transacting sale leasebacks with a focus on industrial asset class, Dallal told GlobeSt.com.
Focus will be on Industrial Real Estate
“This is a diversified platform but our focus will be on industrial,” Dallal said. “In our opinion industrial real estate, especially manufacturing buildings, tend to be critical to a company’s operations. Our mandate is mission-critical corporate real estate.”
Dallal added that Strategic Lease Partners will also invest in distribution and logistics buildings. The platform will occasionally invest in office, retail and certain specialized assets like medical and lab applications. KKR also plans for the platform to focus on long-term leases and sub investment grade tenants.
“Given our close relationship with the KKR credit business that will give us a competitive advantage with underwriting expeditiously companies that are less than investment grade,” Mastrocola told GlobeSt.com.
KKR leadership did not disclose Strategic Lease Partners’ investment timeline, but said it was ready to begin transacting deals right away. Mastrocola said the company expects to be in a position to be “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 to grow SLP as a trusted partner to corporations as an owner of their properties under long-term leases,” Dallal and Mastrocola said in a statement. “We believe that with KKR’s resources and collaborative culture across strategies, SLP is uniquely positioned to understand the perspective of a corporate tenant and act decisively to provide a reliable solution to corporations across the credit spectrum.”
Joe Dyton can be reached at firstname.lastname@example.org.