KKR Acquires 49% of Realty Income's European Portfolio for 528 Million
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KKR has agreed to invest 528 million euros to acquire 49% of a European real estate portfolio owned by Realty Income. The transaction will be structured through a new euro-denominated joint venture, in which Realty Income will retain a majority stake of 51% and maintain asset management. The portfolio consists of 54 properties and 140 units distributed across Spain, Ireland, Poland, and the Netherlands. The assets are linked to net lease agreements and cover five major sectors: food, transportation services, home improvement, home furnishings and equipment, and automotive components. The closing of the transaction is scheduled for September 30, 2026, although it remains subject to the fulfillment of customary conditions for this type of operation. With this investment, KKR enters a diversified European portfolio, and Realty Income incorporates a new private equity financing channel for its real estate activity in the region. Despite KKR's entry, Realty Income will retain the majority position in the joint venture and will continue to be responsible for managing the properties through its European operating platform. The American company will thus maintain control of the daily management of the assets through a long-term management agreement. The portfolio is contributed with an effective initial yield of 5.9%, after deducting recurring asset management fees to be paid to...
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