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KKR Closes Opportunistic Real Estate Credit Fund North of $850M

KKR said Friday it had reached the final close of the KKR Opportunistic Real Estate Credit Fund II (ROX II), a strategy dedicated to opportunistic investments in senior loans and real estate securities in the U.S. and Western Europe. Closed commitments to the commingled fund and separate accounts pursuing KKR’s opportunistic real estate credit strategy exceed $850 million.

“We believe it is a great time to invest real estate credit,” said Matt Salem, partner and head of real estate credit at KKR. “The asset class offers attractive absolute and relative returns, underpinned by the opportunity to lend on high-quality, well-located assets at conservative leverage levels on reset property values.”

The strategy has a flexible mandate to pursue attractive risk-adjusted returns across both loans and securities. Loan originations will focus on first mortgages secured by high-quality properties owned by institutional sponsors. Securities investments will leverage KKR’s position as the largest third-party purchaser of risk retention CMBS B-pieces, along with K-Star, KKR’s dedicated special servicer.

Pictured; KKR headquarters, 30 Hudson Yards in New York City.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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