Global investment firm KKR announced Wednesday that it has closed on a $2 billion fund that will invest in senior living communities as well as apartment buildings serving all ages.
The KKR Real Estate Partners Americas II fund is “dedicated to value add and opportunistic real estate investments, primarily in the U.S.,” the company said in the announcement. An article in the Wall Street Journal described the fund as “aggressive.” KKR said REPA II includes approximately $230 million of capital from its balance sheet and employee commitments.
The new fund is the successor to KKR Real Estate Partners Americas, the firm’s first dedicated real estate fund, which completed fundraising in December 2013 with $1.5 billion in capital commitments. KKR said that fund already has returned more than 70% of its capital to investors.
The new fund, according to the company, is backed by a diverse group of new and existing global investors, including public pensions, sovereign wealth funds, insurance companies, financial institutions, foundations, endowments, family offices and high-net-worth individual investors.
Since launching a dedicated real estate platform in 2011, KKR said, it has invested or committed more than $5 billion in capital across more than 60 real estate transactions in the United States, Europe and Asia as of Sept. 30. A KKR spokeswoman highlighted to McKnight’s Senior Living the firm’s previous investments in Sunrise Senior Living and real estate investment trust Sentio Healthcare Properties.
KKR, with Beecken Petty O’Keefe & Co. and Coastwood Senior Housing Partners, acquired the management company business of Sunrise in 2013, helping to transition it from a public to a private company. The next year, Health Care REIT (now known as Welltower) and Canadian senior living company Revera acquired interests in the Sunrise management company from KKR, Beecken Petty O’Keefe & Co. and Coastwood Senior Housing Partners. Welltower increased its ownership from a 20% interest to a 24% interest, with Revera owning the remainder.
In May, KKR announced that it had sold a portfolio of 34 Sentio Healthcare Properties assets — senior housing communities and medical office buildings in 16 states — to Kayne Anderson Real Estate Advisors in an $825 million transaction. KKR had worked with Sentio for four years.