KKR : Mirastar enter prime logistics market in Germany

Acquisition in Hanover marks KKR's first German deal in its Core+ Real Estate strategy

Frankfurt am Main, 14 June 2024 - KKR and Mirastar, KKR Real Estate's industrial and logistics platform in Europe, have acquired a high-quality logistics property in Hanover, Lower Saxony. This off-market transaction is KKR and Mirastar's first industrial and logistics acquisition in Germany, as well as the first for KKR's European Core+ Real Estate strategy in this market. KKR and Mirastar acquire the logistics property from an Austrian public retail fund managed by Union Investment Real Estate Austria GmbH.

The c. 49,000 sqm asset was developed in 2017 as a modern prime logistics property with strong ESG credentials (achieving DGNB Platinum) and is let to Fiege and Rossmann. The building is located in Hanover, a prime location in Lower Saxony, benefiting from close access to the A7 and A2 highways. The significant transport links make this a strong base for businesses operating along Germany's main north-south and east-west transport networks. Among other developments, KKR and Mirastar plan to further enhance the property's ESG credentials by installing solar panels on the roof.

Ekaterina Avdonina, CEO and Co-Founder at Mirastar, said: "This off-market acquisition marks our entrance into one of Europe's most important logistics markets. We are delighted to be entering Germany with such a high-quality asset. This transaction aligns closely with our strategy of acquiring best-in-class properties. We look forward to further expanding our presence in Germany."

Jan Baumgart, Managing Director and Head of Real Estate Germany at KKR, commented: "This investment marks our first acquisition in the logistics sector in Germany and is a great addition to our pan-European Core+ platform in Europe, which focuses on investing in high-quality, stabilised assets with value growth potential. Logistics is a key theme within this strategy, and Germany is one of Europe's prime logistics markets where we are seeing high demand for well-located and ESG compliant assets. We plan to further expand our footprint in this space both as an investor and as a lender."

Ian Williamson, Managing Director and Head of Core+ Real Estate in Europe at KKR, added: "We are pleased to complete this milestone off-market transaction and expand our portfolio in one of the most strategic distribution locations in Europe. The Core+ sector demonstrates robust rental growth, particularly in regions with marked supply-demand disparities, offering compelling risk-adjusted returns. KKR's global track record, the strength of our platform and our sophisticated investment approach uniquely position us to take advantage of attractive opportunities in the logistics sector despite the challenging environment."

KKR has an established track record in the DACH region, having invested over €18bn in equity since 1999 in over 35 existing and former portfolio companies, and strengthening its presence and growth ambitions in the region with the opening of an office in Frankfurt in 2018 and in Zurich in 2023. Within its German Real Estate business, KKR acquired Velero in 2020 to create a fully integrated housing company, managing about 23,500 apartments across Germany, and established a joint venture with Vision Real Estate in 2022 for condominium privatisations.

KKR and Mirastar were advised by Realogis (commercial); McDermott Will & Emery (property legal & tax); EY (technical & ESG due diligence) and Nova Ambiente (environmental due diligence).

About Mirastar
Mirastar is a pan-European logistics developer, investor and asset manager, founded in 2019 by Ekaterina Avdonina, Chief Executive Officer, and Anthony Butler, Chief Investment Officer. The team currently comprises 32 senior real estate professionals and has offices in London, Milan, Amsterdam and Stockholm. The team at Mirastar have collectively deployed over €20bn of capital across key European markets, built and constructed in excess of 3.0m sqm of logistics assets. (https://mirastar.eu/)

About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries.

For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at www.globalatlantic.com.

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